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1. THE CHARTERED MANAGEMENT INSTITUTE MAGAZINE
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FEBRUARY/MARCH 2012
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3. Professional Manager February/March 2012
Chartered Management NEWS & VIEWS
Institute (CMI)
Management House,
Cottingham Road, Corby,
05 Briefing
Northamptonshire NN17 1TT Risk is inherent to business. Make sure you manage it,
t 01536 207307 says Christopher Kinsella
e membership@managers.org.uk 06 Feedback
www.managers.org.uk The Secret Sta er on customer service and your letters
08 Agenda
Acting Chief Executive Michael Skapinker brings you this month’s management essentials
Christopher Kinsella 17 Personnel touch
Director of Marketing Alison Blackhurst on how to handle extra bank holidays
and Communications 18 Debate
Simon Dolph Does social media hamper productivity?
Editor Ben Walker
18 50 AOB
Attempting to measure everything is futile, says Simon Caulkin
Art Director Darren Endicott
Senior Sub-editor Gemma Green FEATURES
Editorial Assistant
Rebecca Kearley 20 20 McAndrew meets… Edward Saatchi
Account Director Sam Gallagher
Publishing Director
It worked for President Barack Obama. But will Edward
Ian McAuliffe Saatchi’s social media revolution really transform UK
management? ITN’s Daisy McAndrew logs in
Advertise with us: 24 How to take a chance
For all enquiries, contact The trick with risk is to understand it, says Ben Walker
Michael Coulsey (t 020 8962 30 What a day for…
1261, e michael.coulsey@ Tailor your management tasks to the day of the week, says
thinkpublishing.co.uk) or Samantha Lyster
Vicci Rule (t 020 8962 2942, 34 Life savers
e vicci.rule@thinkpublishing.co.uk) Philip Smith dives into the new pensions duty
Professional Manager CPD PLANNER
© 2012. Published on
behalf of CMI by Think, 38 37 PM profile
The Pall Mall Deposit,
Chartered Manager Karen Taplin of Williams Lea
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Learn how to fall back in love with your job
t 020 8962 3020
40 Ask the experts
COVER PHOTO: CHARLES BEST, REPRO JAMES WOOTON
e professional.manager@
managers.org.uk
Your questions on risk management answered
www.thinkpublishing.co.uk 42 Fleeting thoughts
Squeezing sta into small cars is a false economy,
Member of the Audit says Peter Rodger
Bureau of Circulations 44 Reviews and events
80,948 1 July 2010 to Our word on books and apps – plus key dates
30 June 2011 for your diary
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publication. ISSN 0969-6695© Daisy McAndrew Samantha Lyster Philip Smith
ITN’s special The former Times The business
correspondent talks online editor writer for The Daily
to Edward Saatchi looks at how each Telegraph highlights
about his company weekday has its own the changes to
NationalField p20 personality p30 pensions p42
www.managers.org.uk _ 03

5. GET
MORE
FROM
CMI
Christopher Kinsella, acting chief executive, CMI
As a CMI member, you have
access to a comprehensive
Otto von Bismarck had it right. “A related websites”, they are taking a range of products and
little caution,” said the large Prussian big risk, often without realising it. services, all designed
statesman, “outflanks a large cavalry.” We quote research that reveals more to help you on your path
His words reveal a great truth: carefully than half of college students and to management success
calculate any risk before you take young professionals would refuse to
it. Caution is as much of a virtue as join a company that blocked access to ON THE WEB
courage. You need a bit of both. social media, or simply find a way to With free checklists, e-learning
This issue is themed on risk and circumnavigate those rules. The stakes modules, podcasts and an “ask
reward, and how those great tenets of are high in that risk equation: play Big the researcher” service at
business manifest themselves in the Brother on internet use and you might www.managers.org.uk/
decision-making process of the modern send the elite of the next generation into managementresources, the latest
workplace. Our examination of how the arms of more liberal employers. thinking is just a click away.
to calculate odds, quantify stakes, and The lesson is that risk is found in the
anticipate the moves of others (page 24) most unlikely places. CMI is aware of ON YOUR CV
serves as a reminder that even everyday this. To combat it, we train our managers Enhance your professional
business practice is fraught with risk. in sound risk management. But risk status with a CMI management
Innumeracy is apparently so rife among management is not designed to eliminate qualification, not to mention study
otherwise educated adults that one has to every possible pitfall. CMI accepts that tips when you need them the most.
assume that many managers are creating risk is an intrinsic part of enterprise.
strategy based on erroneous assessments Indeed, a properly implemented, IN YOUR INBOX
of the risks at hand. Sometimes people comprehensive risk management Keeping on top of employment
underplay risks. Yet – arguably more process can encourage an increased law changes and management
often – they also overestimate them. appetite for risk – because problems updates has never been easier
Take internet use and social media. have been identified and calculated. with our monthly e-newsletter
On page 18 we debate whether the Gains are maximised, downsides clipped. Membership Matters and e-alerts
use of social networking at work risks Bismarck was no coward, nor no dove. from our partners at BusinessHR.
compromising productivity. CMI’s His record of declaring war on a raft of
own Adi Gaskell argues that it does European powers demonstrates that FOR THE JOURNEY
not. Indeed, he goes further, expressly he was willing to take risks, provided Make your next management
making the case that the use of Facebook, he deemed it to be the right strategy. move with confidence using
Twitter and similar products actually Many risks should be avoided, but, as our online continuing professional
increases productivity by giving sta a Bismarck realised, you have to take development system and career
chance to rest their brain for short some of them. guidance resources.
periods during their working day.
Workers will either produce work Find out more about how CMI can help ON YOUR PHONE
of su cient quality and quantity you manage risk at bit.ly/cmirisk Want answers on the move?
or they won’t. Take social media Then download our free CMI app
away and the unproductive (www.managers.org.uk/app)
employees will find some or contact our legal helpline for
other distraction. up-to-the-minute advice from a
Some managers qualified solicitor.
will bridle at this
analysis – and that’s IN THE COMMUNITY
reasonable too: why Keep the conversation going
should businesses “Risk is online – through our forums –
pay their sta to
message their friends?
found or at one of our top regional
networking events (see page 46).
Yet, when in the
organisations
close down access most NOT YET A MEMBER?
Visit www.managers.org.uk
to social media,
personal email or the
unlikely or call 01536 207307 to
places”
join today.
nebulous “non-work
www.managers.org.uk _ 5

6. GET IN TOUCH
Send your views to professional.
manager@managers.org.uk or
PM, Think, The Pall Mall Deposit,
124-128 Barlby Road, London
Your chance to comment on management matters W10 6BL. Letters may be edited
for length and clarity
PRIZE LETTER of their loyalty (or disloyalty), so
they get their issues and concerns
Dragon made o their chests and hopefully are
rewarded or at least acknowledged.
a friend of me A positive message is good for
Well done, Deborah Meaden, business and a negative message
for finally debunking the old has to be handled with respect.
chestnut that the customer is LETTER That is just good business sense.
king (Winter 2011/12, page 15). PRIZE Social media is transforming the
It’s a business mantra that is ready way that customers interact and
to be replaced. The proof more opportunities are opening up
Vivienne wins
is mounting that customers buy for interaction with businesses. To
two tickets
into brands, products and services to Decanter
some, customers are still kings, but
and, as Meaden says, want to be Magazine’s for many the mantra has changed
treated as “respected friends”, Italian Fine Wine to reflect advancing technology, in
not kings. Increasingly savvy Encounter at the way customers are interacting
customers are posting both The Landmark with businesses and each other. I
positive and negative messages Hotel, London am delighted by this.
on Twitter, Facebook, LinkedIn on 19 May 2012. Vivienne Leach MBA,
and company websites. These This event BSc, PGCE, MIOC,
will showcase
messages provide valuable Dip Corporate Coaching
some of the
feedback, and all businesses best wines from
should be thanking customers for Italy. Guests will Labour of learning
blogging and interacting. These sample more Baroness Prosser (Winter 2011/12,
interactions reinforce the idea than 300 Italian page 19) questions the bias
that customers would rather be wines from the towards academia at the expense students for whom this was never a
respected friends. Well, certainly finest vineyards. of vocational training, recognising realistic option. This is because we
listened to, at the very least! Visit www. that the country needs people with have an education system based
Friends tell you when things are decanter.com/ practical skills, and blames the on outputs, rather than outcomes;
wine-events to
going well and when things are current government for slashing where we are more focused on
find out more.
not going so well. They also tell education spending by more than exam results than on learning.
all their friends too, and this is a 13% and taking the education Let teachers teach and students
powerful message. They expect to debate in the wrong direction. learn. Remove the bureaucracy
be treated with respect because The truth is that successive of employing apprentices whom
governments have developed only medium and large companies
ridiculous performance measures can deal with. Let all businesses
LATEST DISCUSSIONS ON that favour education instead employ and train these young
PROFESSIONALMANAGER.CO.UK of learning – and I will explain people to use their strengths and
the di erence. Education can be perhaps, in the future, we’ll find
● Part of the team ● Risk and ruin
Adi Gaskell on giving Mike Petrook argues that
measured by exam results to show it easier to find “tradespeople”
employees something unfair dismissal rights academic achievement. Year-on- such as plumbers, electricians
to belong to protect innovation year, more students achieve A and carpenters. If we do not take
professionalmanager. professionalmanager. grades in GCSEs and A-levels, yet action now, don’t be surprised to
co.uk/belonging co.uk/innovation the UK is seen as having a failing see society deteriorating.
education system where numeracy Alan Wingrove
● Power from the people ● Role models and literacy are falling. This
Is the government right Coco Chanel and Oprah paradox proves that our education You booze, you lose
to consider reducing Winfrey are the heroines
system has detached itself from Alison Blackhurst raises some
workers’ rights at the of management expert
smallest firms? Christina Ioannidis
students’ learning. The idea of important issues in her column
professionalmanager. professionalmanager. every student leaving compulsory on the potential headaches of
co.uk/rights co.uk/coco education with five A to C grade o ce Christmas parties (Winter
GCSEs has disengaged a swathe of 2011/12, page 43). She is right
06 _ PROFESSIONAL MANAGER _ February/March 2012

7. Letters
WHEN THE PRICE I once saw a Canadian stand-up
IS RIGHT, THE comic describe the differences
between his country and mine.
CUSTOMER ISN’T He said that in Canada they had a
Management and customer magical thing that simply does not
service are expendable for exist in my country: customer service.
companies that compete only Taking care of customers is a
on price, says the Secret Staffer business imperative, right? It costs
nothing and can really separate you
from competitors, right? Managing
employees to look after customers
when she says: “Free flowing will result in more business if punters
booze is, I’m afraid, probably feel they are being helped, right?
a mistake.” Wrong, wrong and wrong. Today’s
As an employment lawyer, I find lesson: the customer service myth –
that the majority of employment SECRET don’t believe the hype.
tribunal claims arising from STAFFER My company prides itself on
o ce Christmas parties are customer service. It gives product
a result of excessive alcohol training to staff and encourages them
consumption. Drinking too much to do whatever customers need. Our stated aim is to be the
often results in the lowering of, best customer service retailer in the country.
or the abandonment of, social Someone should really tell the people who shop here.
inhibitions and standards. Sexual I work for a large household name retailer. People never
harassment and violence are the tire of regaling me with their experiences at the store – I’d say
most common complaints on that I never tire of hearing them, but it would be an outright
claims arising from o ce parties, lie – and I have never heard anyone talk positively about my
often as a result of inebriation. employer. Some people complain to me about the service they
As Alison states, it is important got in a store hundreds of miles away, some say they refuse to
that managers restrict the amount go there (I bet they still do, though). One charming lady once
of alcohol available. Managers are told me she wanted to shoot all our employees in the face with
also advised to remind employees a nail gun. However, they never complain about our prices.
to treat each other respectfully. Despite the rhetoric, service is crap here. The pay is low, the
Bosses may want to think about staff don’t care, most don’t know much about their products,
a specific policy on behaviour and those who do are moved from department to department
at o ce parties. Currently, only so often the know-how they have accrued is wasted.
around a third of employers have The training is impossible to fail, so our bored employees
such a policy. The policy should lay race through it in futile pursuit of an adrenaline kick.
out what is considered acceptable With poorly managed staff like that it would make sense if
behaviour and what is not, but we were tanking. But we’re not. My company is huge. Cheap,
should try to avoid straying into really huge and really, really profitable.
“party pooper” territory. O ce We are the biggest retailer in our sector by far. When the
parties are, after all, a celebration recession hit, the money we lost year-on-year would have
and a way for employers to show been enough to purchase another major retail chain – the
appreciation for the work of their household name in its sector – outright. Like I said, huge.
employees. Such a policy is a clear If consumers really cared about customer service, big-box,
reminder of expected behaviours stack-it-high, sell-it-low retailers such as mine wouldn’t
and helps if any subsequent action exist. We’d all be getting greeted by name by the butcher,
is required. Find out more the baker and the candlestick-maker – and paying through
Adrian Hoggarth, head of The Secret the nose for it. My company pays lip service to customer
employment, Prolegal Staffer’s service because it makes it look like it’s trying, which is good
company’s PR, but it’s never going to correct these ills until our crappy
approach to management affects the bottom line. And that won’t happen
customer until customers stop complaining and just stop buying. Or
relations led someone shoots us all with a nail gun.
to a race to the
bottom on price
– and service
quality. Find
tips on more
enlightened
approaches
at bit.ly/
cmicustomer The Secret Staffer
www.managers.org.uk _ 07

8. For the latest management
news and views, visit
www.managers.org.uk
Insights from across the world of management
Management minutes
Financial Times associate editor and management
specialist Michael Skapinker lists his regular
round-up of the top 10 news items for managers
1 3
Government to
consult on protected Need for creative
conversations industry skills
Employers will be able to have According to a report by
“protected conversations” the Confederation of British
with members of sta , Industry (CBI), the creative
allowing them to discuss sector is expected to employ
employee performance 1.3 million people by 2013,
without the fear of being potentially making it larger
sued for constructive than the financial services
dismissal, if government sector. It is important to make
plans come to fruition. Prime sure these people have the
Minister David Cameron right skills. “We must ensure
said that the government that young people leave
would consult on a new set school with a strong grasp
of rules “so a boss and an
of the basics. Solid maths
employee feel able to sit down
together and have a frank
and science is particularly
conversation – at either’s vital,” said Susan Anderson,
request”. Companies believe CBI’s director for education
protected conversations are and skills.
very important now that the
5
government has scrapped without challenge but paying Disciplinary action if they had been recruited
PHOTOGRAPHY: EVERETT COLLECTION/REX FEATURES, SHUTTERSTOCK
the default retirement age of them compensation. over social media directly. After 12 weeks in the
65. But companies need to be While some companies same job, agency workers are
4
careful that discussions do not Chief executives may encourage sta to use now entitled to the same basic
trigger discrimination claims. urge employment social media such as Facebook, pay, overtime and bonuses
of ex-o enders LinkedIn and Twitter for as directly recruited sta .
2
Unfair dismissal Sir Richard Branson and work-related activities, 21%
7
rights to remain Marc Bolland, chief executive have taken disciplinary action Unions accuse on
The government of Marks & Spencer, headed over inappropriate postings Swedish derogation
has decided against a more a group of corporate leaders about another individual, No sooner were the
radical reform to employment calling on companies to according to a study by new agency workers’ rules
law, which would have ended employ former prisoners. law firm DLA Piper. introduced than trade unions
employees’ rights to sue “It is a fact that 70% of accused some employers of
6
for unfair dismissal. The people leaving prison Agency rules finding a way around them.
suggestion came in a report re-o end within 12 change The Trades Union Congress
by Adrian Beecroft, a donor months, but this figure The (TUC) passed a resolution
to the Tories. The Institute drops to 22% for ex- government has expressing concern over
of Directors welcomed o enders in full-time improved the rights of companies using the “Swedish
Beecroft’s proposal, saying jobs,” they said agency workers, derogation”, under which
it would have liked to see in a letter to putting them the agency, rather than the
the law changed to allow the Financial in the same company, acts as the employer,
employers to dismiss sta Times. position as depriving workers of the new
8_ PROFESSIONAL MANAGER _ February/March 2012

9. News
rights. The TUC said it was
considering a legal challenge
to the practice.
8
Young recruits lack NINE TO FIVE
workplace skills
The shortage of young THE WHISKY GURU
people with relevant skills With a brand that he started in his London kitchen, founder and head
is a concern for 28 leading whisky maker of boutique blender Compass Box Whisky Co John Glaser
companies and professional is challenging the conventions of a very traditional industry
organisations interviewed by
the FreshMinds consultancy 0515 I power through emails that
on behalf of the Young have arrived overnight, before having
Enterprise charity. Three breakfast with my two boys and
quarters of the companies walking to work. It’s important to me
surveyed thought the to walk to and from work. It’s a way to
education system was not clear the head and think more deeply
giving young people the about the issues of the day or week.
skills needed to enter the 1000 My palate is best in the
workforce. When asked to list morning, so this is when we do
the problems, one company tastings or create prototype blends.
said: “Commercial awareness, I might bring in samples of things
written and spoken English, we’ve been working on, and it’s
technical skills, interpersonal great when I taste them and
skills, you name it.” think: “No one’s ever done
anything like that; it’s a winner!”
9
Female directors These are eureka moments.
make some progress 1200 There is a brainstorming
One year since the meeting about the launch of a
review by Lord Davies on limited-release whisky. The world
female directors, progress of Scotch whisky is steeped in
is slow but discernible. In tradition and we are regarded as
October, government figures creative and innovative, because we
revealed that women now try to remove the rules that people companies. It’s not as romantic
make up 14.2% of FTSE 100 feel surround the use of Scotch as you’d think.
directors, compared with whisky and make it more relevant 1700 I call our California sales
12.5% in 2010. Women account to modern times. brokers to discuss the launch of a
for 8.9% of FTSE 250 directors 1300 I check my travel plans. new product there. It’s a process
– up from 7.8% in 2010. The I spend a lot of time at events around that starts with me getting an idea
number of all-male FTSE 100 the world where I can meet whisky and making the commercial case
boards has fallen from 21 in lovers. Many of them really enjoy for it. The fun part is sourcing the
2010 to 14 now. what we do and that is rewarding, component whiskies and putting
but it’s equally important to hear them together, and finally working
10
Directors’ what they wish we did and see with our package designers to come
pay soars what competitors are doing. up with something that makes
Directors’ 1500 Maintaining our relationship people go “Wow”.
pay is not su ering despite with distillers is a big part of my 2200 I sometimes have a glass of
the economic crisis. Total role. People think these are old guys whisky to end the day, but not often on
earnings of FTSE 100 with big beards, doing things the weekdays, when I have to be up early.
directors rose by an average same way they did 200 years ago. In Sadly, I’m not just drinking whisky
49% in the past financial reality, I’m mostly dealing with big all day; that would be some job!
year, according to research
by Incomes Data Services
ILLUSTRATION: QUINTON WINTER
(IDS). The average company THE BOTTOM LINE
director now earns SHORT, SHARP AND SMART SECRETS TO SUCCESS
£2.7m per annum. Steve
Tatton, editor of the IDS “I tell colleagues they can have five
report, said: “Britain’s minutes now, or an hour later, and they
economy may be struggling have developed the skill of presenting
to return to pre-recession ideas very quickly. It has liberated me!”
levels of output, but the same Tim Smit, chief executive and co-founder,
cannot be said of FTSE 100 the Eden Project
directors’ remuneration.”
www.managers.org.uk _ 9

10. www.managers.org.uk/qualifications
Jump the for that plum
management
position
Candidates with the right
Qualifications on their CV are
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Make sure that’s you, by gaining
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Study part-time or online,
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For more information or to enrol
for a CMI Qualification today, call
01536 207404 or email employer.
engagement@managers.org.uk

11. News
Bring the big
questions to your
desktop with
professional
manager.co.uk
Visit our new Professional
Manager website for
web-exclusive articles and
analysis of the current affairs
that matter to UK managers.
As well as an archive
of the best articles from
Professional Manager,
professionalmanager.co.uk
Training joins
features fresh content from
leading writers examining
management news and
asking you for your views.
tech revolution
Visit professionalmanager.
co.uk today – and sign
up for our Twitter feed,
@ProfManager – to keep
This year is likely to see a digital the panellists were unanimous in abreast of the latest content
revolution in training, according to saying that learning technologies are on the site.
research. A report into e-learning by very much the norm now,” says the
accredited accountancy body Acca document. “They did add, however, that SEARCH – your favourite
reveals that the number of organisations these technologies would undoubtedly articles from the magazine
delivering over 50% of their training via become more sophisticated and adept at at your fingertips, helping
e-learning will more than double in 2012. meeting the needs of professionals and you become a better leader
And, citing external research from organisations over the next 10 years.” and manager.
the Chartered Institute of Personnel Report panellists scorned the idea that
and Development, Acca states that 46% e-learning was an easy ride compared to DISCOVER – web-only
of organisations will have more than a traditional training. “E-learning can be content, including exclusive
quarter of their training online in 2012, incredibly demanding, because learners new sections such as My Hero
up from 26% in 2011. are doing a lot of the learning and the and Whose Side Are You On?
The Acca report forecasts that research themselves, which is incredibly
e-learning will grow further. “When beneficial to deep understanding,” says DEBATE – get interactive!
asked whether learning technologies Martin Taylor, chief executive of BPP Let us – and the world –
would be the norm in 10 years’ time, Business Schools. know your views on leading
managers’ styles, key
management issues,
THE REPORT MAKES FOUR KEY PRACTICAL and current trends.
RECOMMENDATIONS FOR ORGANISATIONS
WISHING TO JOIN THE E-LEARNING REVOLUTION:
Remember that E-learning must Poorly designed Make it
technology is only be integrated in software can feel familiar
a means to an end wider training alienate employees “You need to think
“The reality is,” programmes from e-learning about where people
says BPP Business “When putting “You have to invest are in terms of
Schools chief programmes time in producing technology and
executive Martin together it is a quality product, social media,”
Taylor, “if your important the otherwise nobody says report
ILLUSTRATION: ISTOCK
technology and individual will use it,” says consultee Laura
your strategy perceives there Jim Robertson Overton, managing
don’t fit together, will be additional from energy director at learning
no learning value from online giant Shell, who technologies
1
programme is content,” says was one of the experts Towards The ranking of London in Cushman
going to work.” Martin Taylor. report’s consultees. Maturity. & Wakefield’s European Cities Monitor
2011, a league of the top business cities
www.managers.org.uk _ 11

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13. News
Study success
in the sunshine
CMI continues to spread learning Students are pictured below
and accreditation well beyond the with Gibraltar’s minister for
shores of Great Britain. education and training, Clive
77% of those polled by the British Just before Christmas, a raft of Beltran; and Maria Antonia
Council for Offices said that an students from Gibraltar qualified Brooks, principal of Gibraltar
unattractive workplace would
with diplomas in management at College, which delivered
make them less proud to work
for an employer
Level 3 and Level 5. the programme.
100% of the top 100 UK companies
now report on corporate responsibility,
up from 91% in 2008. Source: KPMG
International Survey of Corporate
Responsibility Reporting 2011
Olympics boss
headlines CMI dinner
The Olympic Delivery Authority “It’s fantastic news to have a leading
74% of European employees polled
chairman John Armitt is to speak at the figure from the Olympics’ management
trust their manager, while only 51%
trust their organisation’s senior
annual CMI President’s Dinner, where team speaking in 2012,” said CMI
leader, according to BlessingWhite’s he will be this year’s guest of honour. companions manager Daniel Symonds.
Employee Engagement Report 2011 The event is hosted by CMI President Tickets cost £99 and can be booked
Terry Morgan , and is exclusively for through Miranda Goldstone on
Companions. It will take place on 01536 207306. Alternatively email
22 February at 30 Pavilion Road miranda.goldstone@managers.
in London. org.uk
MANAGEMENT SPEAK
Black-sky thinking been used in the financial so powerful that they
1. n, v. Considering or press to describe the can’t be contained by
9.5 is the number of minutes it takes
planning for the worst- bleakest of economic the Earth’s atmosphere.
to form an opinion of someone face- case scenario. Essentially forecasts. However, Let’s start the fight against
to-face, but an online photo prompts the evil twin of ‘blue-sky some see it di erently, doom and gloom here.
a decision – good or bad – in just 5.5 thinking’, this phrase has using it to describe ideas Blast o !
minutes. Source: Reputation 24/7
www.managers.org.uk _ 13

14. Agenda
POLICY WATCH
Gone are the days where looking after human beings
conflicted with making money. The way to be truly
successful is to be ethical, says CMI policy and
research director Petra Wilton
The only way is ethics
his year is going to be will wear two faces: one looking Putting on a the best politicians and business
T a struggle. Operating backwards and one looking leaders will be seeking to rebuild
business face:
will you be
against a backdrop of forwards. They will have a strong looking both trust in business, which will mean
European economic vision and sense of direction for ways this year? being ethical in all matters and
instability, rising energy prices and their organisation, knowing what’s putting people above profit.
domestic austerity, with public happening in the marketplace and The government’s response
spending likely to be reined back anticipating what’s ahead. They to executive remuneration will
even further, many will be seeking to will reflect on the past year and be provide an indication of how
protect the delivery of core services inspired by their people to face the far politicians will be prepared
and cutting back elsewhere. year ahead. to go down the regulatory
By focusing on the core, will Looking back, they will see path. Alongside any regulatory
we finally see more organisations the fate of those who did not act approach, there will be an
putting people at the centre of their ethically, such as News of the important role for professional
businesses? In our future forecast World (NOTW). The impact of standards, ethics and codes of
survey, which asked managers who unethical business behaviours conduct. Indeed, CMI welcomed
they would most like to shadow is that “trust in business has the recent comments of Lord
for a day, Sir Richard Branson clearly eroded and needs to be Heseltine, the Prime Minister’s
emerged as a clear favourite. In reconstructed,” according to growth adviser, that the UK should
his latest book, Screw Business as Andrew Witty, chief executive of have compulsory membership of
Usual, he claims that it is “time to GlaxoSmithKline, addressing trade bodies to raise standards.
turn capitalism upside down and the High Pay Commission. At CMI, a key focus over
switch from a profit focus to caring Our headline writers had it the coming year will be
for people, communities and the right when they screamed promoting the business
planet”. However, he argues that “Without trust you are chip value of our own professional
a focus on people should not be paper” on my fellow columnist standards and code of conduct,
viewed as being at the expense of Simon Caulkin’s recent article as epitomised by our Chartered
delivering profits – as focusing on about the demise of the NOTW Managers. For those politicians
people makes good business sense. (Professional Manager, and businesses looking to
In any new year, the most September/October 2011, rebuild trust and strong
e ective leaders adopt the visage page 50). With this in mind, values, it will be time to
of the Roman god Janus – they using their forward-looking face, turn to the professions.
Code put into practice outcome being a recommendation to the Board
The CMI Code of Practice for Professional to expel the member concerned.
Managers is a living document. CMI members
CODE OF sign up to it, but that is not the end of the story. Board and Committee opportunities 2012
CONDUCT The onus is on members to exemplify the Code Two elected places are available on the
in their everyday management activities. A Board for members with experience of
complaint raised, whether by another member, operating at strategic level and with a profile
a member of the public, a professional body or including previous executive and/or non-
LIVING by the CMI itself, alleging a breach of the Code executive director experience. Closing date
STANDARDS is thoroughly investigated. for applications is 31 May 2012. Specialist
In the past 12 months, three complaints roles on the various committees include the
CMI encourages
have been submitted and investigated. Professional Standards Committee and the
everyday ethics The complaints are administered by the Finance and Audit Committee.
Professional Standards Committee, assisted
by a group of CMI and IC members who form For more information on the Code and
an investigation panel. In two of those cases, elections to the Board, contact Valerie Hamill,
the investigators found no case to answer. Institute Secretary, on 020 7421 2707
The third case went to a full hearing, with the or valerie.hamill@managers.org.uk
14_ PROFESSIONAL MANAGER _ February/March 2012

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17. Human resources
THE PERSONNEL TOUCH
The Queen’s Diamond Jubilee means employers face
another extra UK bank holiday just 14 months after the
last one. Kings of industry are best advised to embrace
it – and plan for it, says Alison Blackhurst
Royal appointment for Jubilee
any businesses will be There are a few ways of payments apply for working on
M grateful that diamonds
aren’t forever. This
managing this – either observe
your normal holiday practices and
bank/public holidays. The same
applies for those employees who
year will see another sign o the days on a first-come- have “x days including bank/
extra bank holiday – on Tuesday first-served or business-process public holidays” – typically this
5 June, for the Queen’s Diamond basis, or agree to accept more than applies to those in the retail,
Jubilee – just over a year since the norm and plan to operate your customer service or healthcare
the royal wedding triggered a organisation with a last-week-of- sectors, which operate while
bonus break. Yet there are no December-style skeleton sta or o ces are closed. However, this is
plans to make the extra day a shutdown. Whatever you decide, becoming increasingly common as
permanent fixture. make sure you plan as soon as the method of calculating holiday
Still, there remains this year’s possible. Set clear rules well in entitlements is often easier and
jamboree to deal with. Extra advance as to how many sta will fairer to administer if you have
bank holidays always prove be allowed to take 6-8 June o , part-time, job-share or fixed-term
a conundrum for employers, on what basis you will authorise contracts and so forth.
particularly when they drive requests, and reinforce that your That said, tread carefully if
so far into a working week that absence policy applies for that you do ask sta to come in. With
many sta are moved to take any FIND period, stressing that you will be most of the country o work and
bridging days o to secure a long OUT asking for medical evidence from enjoying themselves, you may
break. That is the case here: MORE… those who do miss work when they appear mean – and unpatriotic
if sta take the three days o As a CMI member, are scheduled to be in. – should you fail to observe
following 5 June, they will be you can access
templates for
a orded a nine-day holiday for
the price of just three days from
policies, forms,
letters and
“Tread carefully if you ask staff to
their holiday entitlement. contracts from
Business HR, plus
come in. With many off work, you may
So expect a rush for holiday
requests for 6-8 June.
a great monthly
newsletter
appear mean and unpatriotic”
Of course, some employers the Jubilee. This could cause
may be reluctant (or unable to resentment and productivity may
a ord) to grant the extra holiday. slump. On balance, and in most
Whether they are duty-bound cases, the best advice is to observe
to allow it will depend on the the holiday.
wording of the employees’ The only solace I can provide
contracts. Broadly, there are to English and Welsh employers
three types of holiday clause. is that they still have fewer
The first states that an holidays than most of their peers.
employee is entitled to “x days Scotland and Northern Ireland
plus bank/public holidays”. In this already have more public and bank
case, you would have to grant (and holidays than England and Wales,
pay) the extra holiday. The second yet the additional bank holiday for
ILLUSTRATION: QUINTON WINTER
says the employee is entitled to the Jubilee will still apply in the
“x days plus the eight standard UK’s two northernmost nations.
bank/public holidays”. In this case In 2012, Belgium has 10 bank
you may require the employee holidays; Germany, Italy, Greece
to work on 5 June and there is and Austria, 12. And France?
Will your staff be no contractual entitlement to A whopping 13. So, as well as
joining in with
Diamond Jubilee an extra day’s paid holiday – but celebrating that diamonds aren’t
street parties? remember to check your contracts forever, many bosses might also
to see whether any supplementary remark: “vive la di érence.”
www.managers.org.uk _ 17

18. Does social media
hamper productivity?
Facebook, Twitter, Google+, LinkedIn – most
of us now use at least one of them. But is social
media a threat to business productivity?
Kayleigh Ziolo hears two opposing views
than shoehorning vague guidelines
YES into an existing policy that may be
ignored by many anyway.
We need to re-instil the idea
RONAN of “reasonable use” in company
KAVANAGH policy in accordance with the
CEO SpamTitan technological changes of the past
Technologies decade. Of course, we must trust
our workforce, but the reality is
that despite those conscientious
employees who spend their time
The use of social media in the working and producing e ective
workplace can hinder productivity. output for the company, a minority
Time spent on personal internet will, consciously or unconsciously,
use is simply time not spent abuse their freedom online. I say
working. Using company-provided unconsciously, because for an
equipment for personal internet increasing number of people the
use on company time is not way they use social media is so 56% of the college
dissimilar to running up a massive ingrained in their daily habits they students and young
phone bill for the company – only simply don’t see it as problem. professionals
the technologies are di erent. Another issue businesses are polled for Cisco’s
Non-work-related social media starting to wake up to is security. Connected World
activity costs the average SME Education plays a part in this, Technology Report
with 52 employees $65,000 per but social media contains many 2011 would not join
year. No one wants a Big Brother holes that cyber-criminals will a company that
culture, yet the reason people don’t happily exploit. As a relatively new banned access to
make lots of long-distance calls on technology that is changing and social media or
business telephones isn’t moral, gathering pace all the time, there would find a way to
it’s because they know there will be is plenty of user unfamiliarity to get around the rules
records leading back to them and exploit. This could have disastrous
they will face repercussions. consequences if viruses, trojans or
Businesses that have employed other malware infect a company’s
the flexible measures SpamTitan network, particularly for smaller
provides have noted that simply businesses that will have less
introducing ways to assess money to address these issues.
patterns of social media use, and Keeping your company equipment
letting their sta know that their secure is vital, and implementing
ILLUSTRATION: GARY NEILL
employers are able to do so, can restrictions is a small price to pay
lead to a significant change in web to prevent such occurrences.
habits and employees’ approach Would we want to completely
to accessing social media at work. outlaw social media in the
On the basis of this analysis workplace? Of course not. However,
managers can lay out a clear, it is vital to give businesses the
comprehensive and flexible policy tools to analyse and control the
for use in the workplace, rather problem as they see fit.
18_ PROFESSIONAL MANAGER _ February/March 2012

19. Debate
Social media in
the workplace is
NO about collaboration
and increased
productivity.
ADI GASKELL That’s right, I said
MCMI, Content increased. Research
and Communities conducted by AT&T
Manager, CMI a couple of years
ago supports this, as
does a recent study
by the University
of Melbourne
on productivity
improvements.
No one is 100%
productive for a
continuous 40-hour
weekly period. Productivity for us all comes in
fits and starts. Allowing people to take brain
breaks when they need to is actually beneficial.
Good employees will get the job done in the
time they need to. When we employ sta , we
are e ectively telling them we think they are
up to the job in hand. We enter a contract of
mutual trust – it is simply bad management to
then say “we’re going to make restrictions on
how you use your computer and keep tabs on
you”. That person is there to do a job, and it is
damaging to behave as if you assume they will
not do so unless watched. Banning does not
work. Oppression leads to rebellion, and people
will simply find a way to defy a rule they believe
patronises them and makes them feel less free
as hard-working individuals.
Security is a valid concern, but to ban social
media based on a fear of viruses or malicious
software is really just throwing the baby out
with the bathwater. Again, educating sta is
key, but so is trusting that they will have some
knowledge in this area as users of social media.
Generally they’re unlikely to trust or click on
anything at work that they would avoid at home.
Rather than see social media as a problem
to be tackled, it should be embraced as part
of the working culture. It is not the root of all
evil – it is simply the tool through which deeper
underlying issues are revealed. If people in
your organisation are inadvertently sharing
confidential or damaging information related
to the company, you have a problem with
education, not with social media. Equally, if
people are sharing confidential or damaging
information deliberately, to embarrass, then you
have a problem of employee engagement. It’s
a very public view – the press often cite social
media as the cause of problems and unrest,
rather than just another instrument people use.
For more on social networking, turn to our
interview with Edward Saatchi on page 20
www.managers.org.uk _ 19

20. Edward
MCANDREW MEETS…
Saatchi
The charismatic son of Maurice Saatchi thinks most
businesses’ internal communications are dinosaur-ish and
broken. Perhaps that’s why he’s pushing a Facebook for firms
with evangelical zeal, says Daisy McAndrew
It’s not a face you’d forget – and it’s a story to fly back from the Obama campaign to
just as remarkable. Ridiculously young – but defend my philosophy thesis and then head
looking considerably older with his tangerine back to the States,” he says.
beard and frizzy, floppy hair – Edward Saatchi And it was while working on that campaign
is being touted as Britain’s answer to Mark that NF was born – under its original name,
Zuckerberg. His communications company, The National Field Programme for the Obama
NationalField (NF), promises to take social Campaign. The need, says Saatchi, was clear:
media into the world of business and change as the campaign grew, and with it the number
it as much as it has changed our private lives. of o ces and sta , the Obama campaign team
And, with a $1 million turnover in its first year, didn’t have a system for all the volunteers and
Saatchi’s ambition looks right on course. “It’s workers to stay connected.
becoming the Facebook for enterprise,” says “We were determined we’d be the first ‘real-
Saatchi. “It’s got so much momentum behind time campaign’,” says Saatchi, “meaning we’d
it – there’s no going back.” know every minute everything that was going
As the son of the writer Josephine Hart and on – so we created NF.”
advertising mogul Maurice Saatchi you’d have The “we” is his fellow NF founders
expected Edward to stay in London and use Aharon Wasserman and Justin Lewis –
his considerable contacts, but the 26-year-old both managers on the campaign – managing
has got to where he is today via an altogether 150 people each, many older than them.
more convoluted route. They needed to know, immediately, the
A self-confessed “Obama nut”, he went state of their campaign. Getting feedback
to the US in 2008 to help Barack Obama’s from door-to-door campaigning and
presidential campaign. It sounds glamorous, doing it via emails was ine cient: by
but exhausting. “I was doing a couple of the time the information reached HQ
master’s degrees in Paris and would have it was out of date.
20_ PROFESSIONAL MANAGER _ February/March 2012

21. Interview
www.managers.org.uk _ 21

22. At first, only the top trio used the new system – a
sort of internal social network. But soon the whole
campaign was using the system to communicate.
And it formed part of what was credited as the
first “new media” presidential campaign – a million
people signed up for campaign text messages and
25% of Obama voters were linked to the campaign
via social media.
However, it was only when his former Obama
colleagues moved on to jobs in other organisations
– and complained bitterly about going back to using
“There’s something about the
social element that means
people stay really friendly and
it doesn’t get mean-spirited”
emails and intranets to communicate with colleagues
– that the three young men realised they had a
business on their hands. “We patented what we had
and got on with it,” says Saatchi.
When I venture “What’s wrong with companies
using the intranet?”, Saatchi looks aghast: “The
intranet is dead, it was created in the 1990s, it’s
not fit for purpose.” Oh, okay then.
“Intranets are not remotely interactive and they
don’t engender a feeling of community,” insists familiar with how Facebook works and will therefore
Saatchi. “It’s just top-down information – there’s quickly get the hang of navigating NF.
no sense that the people on the ground can give And, even for those few who don’t know how to use
feedback. It’s not a management tool at all, it’s just a Facebook, “there’s a positive attitude and they want
place to go and get basic information. I’ve never heard to learn,” he says. But, he adds, he hasn’t come across
anybody say that their intranet is up to date.” anyone who doesn’t know how to use it at all yet.
So, if it’s goodbye intranet, what can you expect Although there are already US firms who “do
from NF? social” for companies, none, Saatchi believes, o er
Well, it looks and feels just like Facebook, which is what his does.
no coincidence – one of the founders of Facebook is So, like Facebook, there are streams of people
on the board. The theory is that everybody is already telling each other stu . However, unlike the normal
PHOTOGRAPHS: CHARLES BEST
22_ PROFESSIONAL MANAGER _ February/March 2012