Professional Manager magazine May Issue 2011

£4.50 / FREE TO MEMBERS

the chartered management institute magazine MAY/JUNE 2011

are you
getting
enough?
Managers’ salaries
revealed in our
nationwide survey

innocent
blooms The smoothie empire’s people
director Karen Callaghan fuses
order and chaos to brilliant effect

fire fight
Should sacking people
really be made easier?

club mad
How bosses are failing
to manage holidays

magic circle
Why enchanting staff
will make them deliver

Professional Manager May | June 2011
Chartered Management news & views
Institute (CMI)
Management House,
Cottingham Road, Corby,
05 Briefing
Northamptonshire NN17 1TT Top bosses beat recessions with ideas, says CEO Ruth Spellman
t 01536 207307 06 Feedback
e membership@managers.org.uk Your letters and our mystery new columnist
www.managers.org.uk 08 agenda
Michael Skapinker’s essentials, plus other key management news
Chief Executive Ruth Spellman 15 View from Westminster
Director of Marketing and John Denham MP says it’s folly to expect business alone to save us
Communications Simon Dolph 16 Debate
Head of Communications Should firing people be made easier?
Mike Petrook CMgr 50 aoB
7 Managers must sell their way out of a slump, says Stefan Stern
Editor Ben Walker
Art director Scott Bentley features
Chief Sub-editor James Debens
Editorial Assistant
18 inside innocent
Rebecca Kearley
People person Karen Callaghan mixes it up at the drinks giant to
Account Director
Sam Gallagher
find the perfect fusion of order and chaos
Publishing Director 24 Perform under pressure
Ian McAuliffe Helen Loveless says budget cuts can make you rethink – for
the better
Advertise with us: For all 26 the age of enchantment
enquiries, contact Michael Tom Peck attends charm school
Coulsey (t 020 8962 30 Pay checked
1261, e michael.coulsey@ Philip Smith brings us the big findings from CMI’s salary survey.
thinkpublishing.co.uk) or
Vicci Rule (t 020 8962 2942,
26 Is your pay keeping you up there with your peers?

e vicci.rule@thinkpublishing.co.uk) cPd Planner
Professional Manager 35 PM profile
© 2011. Published on BAE Systems’ Alan Robson flies the flag for CMI’s chartered
behalf of CMI by Think,
management qualification
The Pall Mall Deposit, 124-128
36 Masterclass
Barlby Road, London W10 6BL
What not to do and which questions to ask when interviewing
t 020 8962 3020
e professional.manager@
job candidates
managers.org.uk
38 ask the experts
www.thinkpublishing.co.uk How to motivate your people in turbulent times
41 the personnel touch
Member of the Audit Give your staff a break, says Alison Blackhurst – you will soon
Bureau of Circulations reap the benefits
86,578 1 July 2009 to
30 June 2010
36 46 events
Boost your contacts book with the latest networking events
COvER phOTO ChARliE BEST

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in this issue
accept responsibility for any statements
which they may express in this
publication. ISSN 0969-6695©
Tom Peck Philip Smith Stefan Stern
The Independent’s The business The award-winning
roving reporter writer for The Daily business journalist
dons his magic Telegraph dives into says managers
hat and learns to the data from CMI’s must brush up their
cast a spell p26 salary survey p30 sales technique p50

www.managers.org.uk _ 03

get
More
FroM
CMi

Ruth Spellman, chief executive, Chartered Management Institute
as a cmi member, you have
access to a comprehensive
HR range of products and
marketing
services, all designed
new recruitment
to help you on your path
business advertising
R&D
catering to management success
ty
uri
sec
on the WeB
With free checklists, e-learning
modules, podcasts and an ‘ask
benefits internat t the researcher’ service at www.
ional en
IT projects
u re
m managers.org.uk/information-
oc services, the latest thinking is
pr
just a click away.

There are good cuts,
on your CV
Enhance your professional
and there are bad cuts status with a CMI management
qualification, not to mention
Necessity is the mother of invention. resistance is understandable – study tips when you need
That’s why this slump could be the making if the business is profitable, there is little them most.
of many companies – and many managers. incentive to launch a time- and energy-
While researching my new book, I talked consuming restructure, even if the in your inBox
to survivors from past recessions. Not business is not as efficient as it might be. Keeping on top of employment
only had some of these people survived But in a slump, there is an incentive. Your law changes and management
the recession, but, in many cases, they had business might not survive if you don’t updates has never been easier
thrived because of it. The recession had look again at its structure. But, if you do, with our monthly e-newsletter
given them an incentive to be innovative, your organisation will be fit for the future. Membership Matters and e-alerts
to take a step back from their organisation, The keys to an effective rethink are from partner BusinessHR.
reassess, and make sensible adjustments. focus – be clear about your objectives –
I emphasise the word ‘sensible’. There and innovation. This issue, we go inside For the journey
is a temptation during a slump to treat a company that has been innovative in Make your next management
company streamlining as a simple its thinking – although Innocent Drinks move with confidence using
mathematical exercise – removing, say, rather modestly says it is simply doing our online continuing professional
15% from every part of one’s business in a the basics better (see page 18). Although development system and career
war on cost. The first casualty of that war successful, Innocent has not been immune guidance resources.
is likely to be product quality. to the difficult times. But it has handled
Better, then, to be discerning about those situations well. This is why the old on your Phone
what you cut. Instead of taking a blunt axe idiom still stands: “It ain’t what you do, it’s Want answers on the move? Then
and top-slicing 15%, do as my recession the way that you do it.” download our free CMI app (see
survivors did and think about which We’ve had recessions before and will page 45) or contact our legal
sections and projects of your organisation have them again. There are businesses helpline for up-to-the-minute
you’d like to keep, and which you could that come out of those slumps feeling advice from a qualified solicitor.
handle losing. If you have 10 projects, stronger. There is a reason for that.
better to pick the most important two and We have 10 copies of Ruth’s book, in the CoMMunity
do them well, rather than doing all 10 badly Managers & Leaders Who Can: How You Keep the conversation going
because you are scrimping on investment. Survive and Succeed in the New Economy both online – through our forums
Making these changes, deciding to give away. For the chance to win, send your – or at one of our top regional
between good cuts and bad cuts, often name and contacts to PMCompetitions@ networking events (see page 46).
requires something that many managers managers.org.uk by 30 June. CMI members
fear – a restructure. During good times, can purchase the book with a 30% discount not yet a MeMBer?
many managers resist restructures, plus free UK p&p. To take advantage of this visit www.managers.org.uk
because they can take huge lengths of offer, visit www.wiley.com, email customer@ or call 01536 207307 to
time, and can cause staff to look inward, wiley.com or phone 01243 843294 quoting join today.
rather than focusing on the customer. This promotion code CMIML.


get in touCh
Send your views to
professional.manager@
managers.org.uk or pM,
Think, The pall Mall Deposit,
124-128 Barlby Road, london
W10 6Bl. letters may be
edited for length and clarity
Your chance to comment on management matters

Prize Letter universities is low, compared to the time
spent on laptops accessing the internet.
hang loose Letter During the last 25 years of my career
I found your interview with Sara Murray Prize as chairman and managing director of
(Professional Manager, March/April) my own company, I encountered several
very interesting and a welcome breath of instances that exemplified the statement
fresh air. We so often hear the internet Bob wins a copy of of my mentor, the late Professor Peter
sages laud the value of social media Business: The Ultimate Drucker: “Academic attainment is no
for business – it was refreshing to hear Resource. it is a one- proof of performance.”
someone with Murray’s experience (and stop reference and I am reminded of the quote from the
technological understanding) question interactive tool covering Drain Brain Report 1967: “Our relative
whether social media is really an integral all aspects of today’s poverty will be overcome only when
corporate tool. world of work. The book we become once more interested in
As no Luddite myself, I’m aware of offers practical and the creation of wealth rather than its
the benefits to many brands – certainly strategic advice for distribution and consumption.” Things
those that have a younger generational anyone doing business have not changed much.
customer base – but the prevailing logic today. Written by a team Albert J Bellworthy, FCMI, FIoD
suggests that all businesses need to have of world-class writers
an active social media presence to be and editors, it is an two-year trial
successful. As the ever-increasing list essential desk reference W Chamberlain’s letter, published last
of corporates, celebrities and members for managers, MBA issue, that argues for two-year degrees
of the public get their fingers burned and business students makes a good case. As a non-academic
by exposing themselves through their and for small business employee at a university, I must declare
online “voice”, I applaud anyone who owners worldwide. an interest and that this is my view only.
goes against the grain and questions the The scale of the change to achieve a
risks and rewards in equal measure. mass of degrees in two years of studying
Bob Johnson is daunting – not insurmountable, but
hugely challenging. I doubt anyone has
Learn to earn the answer yet, but these issues are now
With regards to W Chamberlain’s letter exercising some of our best grey matter.
in the last issue – I couldn’t agree with Roger Thrush
him more. He’s right – universities do
have to turn out graduates in a shorter Lunch crunch
period than three years. I am 81 and A fall in lunch quality has come about as
have four grandchildren. I have paid the purpose of lunches in meetings has
the tuition fees for the three who have changed. I remember when lunch in a
graduated and am still paying for the meeting was a time to take a break and
fourth to complete his degree. The move away from the business matters
number of hours that students attend and spend a bit of time socialising. Now

latest discussions l how much of a l could london cope l what were you
on www.managers. problem are potholes? with a major disaster? expecting from
Are Britain’s rocky We’ve seen the the Budget?
org.uk roads becoming a threat shocking pictures of the Anxious, or cautiously
to business? Damage earthquake and tsunami optimistic? please let
compensation claims that hit Japan recently. us know what you
in london have But the Japanese have think of the Chancellor’s
increased by more than been impressive in their big ideas for Britain,
37% over a three-year response. Do you think as well as what you
period, according to londoners would be would do if you were
the BBC. as measured? in his position.
tinyurl.com/4mzk28z tinyurl.com/5umk8ta tinyurl.com/6kqa5ts

06 _ professional manager _ May /June 2011

letters

honesty One of the ways in which
Being
ManageD is the management tries to build
some sort of empathy and
Best PoLiCy understanding with the
What’s it like to be employees at my workplace
managed? in our new is through meetings they call
column, our mystery “town halls”. These give
Secret Staffer reports from a handful of the 200
the shop floor. This issue: shopworkers some oh-so-
management honesty rare face time with the top
man, and an opportunity to
discuss any concerns they
have with him.
At my first town hall, three
colleagues and I were told
by our boss to discuss our
concerns with each other and
write down any comments.
After being led deep into the
bowels of the store, we were
finally sat in a windowless
room. I took the lack of any natural light or secondary escape
route as a portent of doom.
Our manager’s last words before leaving us in the room were
simple: “Be honest.”
There was little need for discussion. When you ask a group
of university-educated people earning just over the minimum
lunch in meetings seems to be provided wage what their concerns about the job are, it’s fairly easy to
so that the meeting can continue predict their answer: “I wish we earned more.”
uninterrupted and people don’t get We passed our notes to the manager and braced ourselves
hungry. If this is the case, then it doesn’t for 10 minutes of weasel words and management doublespeak
matter how fancy your sandwiches are. on how we were valued workers and the company paid what
John Milburn, CMgr MCMI it could, that there’s a recession on and how even the CEO has
taken a pay cut in these tough times.
great new look! This was not what we got.
As a regular reader of Professional After a deep breath, he said: “Here’s how it works. We used
Manager, I wanted to express my positive to pay a starting wage around £9.25 an hour, now it’s, what?
thoughts on the new glossy magazine. £6.40? £6.50? I forget.” (For the record, it’s £6.28…)
The relaunched title provides the “The recession brought,” he continued, “what is called a
motivation we need in these austere ‘market correction’. That means there are lots of people looking
times, along with the power of innovative for jobs, and to be frank, we can pay less to get the same talent.
thinking and a positive mental attitude! “I would love for us to pay you guys more – I think you’re all
The Masterclass, for example, section worth more than we give you. But we run a business, a very
on networking enables us to improve successful one, and we operate in a free market. One of the
the way we connect with others, reasons we are successful is because we don’t overpay for
share thoughts and build business Below:
products or staff. And, as such, we don’t pay you more than we
relationships. Interestingly, though, I Simon Cowell need to.”
hadn’t come across the animal terms to tells it like it is This blast of truth was actually taken pretty well. It was a test
describe the kind of networker I might for him: he told us to be honest, we were, and he lived up to his
be, and I am not sure whether I straddle side of the bargain and earned some respect from his staff for
one or more category? Perhaps the telling it like it is.
term “Labrador” describes me because And when it really comes down to it, would I actually trade
I am naturally sociable and friendly and respecting my boss and working for a company that talks to me
the term “Limpet” because, yes, when like an adult for an extra few pence an hour?
phOTO REx FEATURES / AlAMY

I locate a friendly face and strike up Well, we’ve all got bills to pay…
a conversation, I tend to remain with Yours,
that person rather than work the room.
So, now I will move towards “Cat” to
express my clear-cut goals and hone my
networking skills! Well done, CMI,
I look forward to the next good read.
Viv Leach, Business adviser and
motivational coach The Secret Staffer


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 this spring

1 Companies should
take on more
apprentices 3 sickness absence
to be reviewed
The government should pay The government has
companies to take on more ordered a review of the
apprentices and interns, as workplace sickness
part of a drive to raise the absence system. ill
quality of skills and training, health is said to cost the
according to a report into
vocational education by
country £100 billion per
Professor Alison Wolf. Her
year. The review, which
report said many of the will be chaired by David
vocational courses currently Frost, director general
taught to teenagers in schools of the British Chambers
and colleges had little value in of Commerce and Dame
the workplace. Carol Black, National
Director for health
and Work, will look into
2 Demand to lift female
board representation
A report from former trade
how more people can
be encouraged to stay
in employment.
minister Lord Davies
recommended that FTSE 100
companies aim to ensure that
at least a quarter of their board
members are women by 2015.
4 Middle East
revolts posing
ethical dilemmas
5 All change for public
sector pensions...
Lord Hutton recommended,
be switched into defined
contribution pension
schemes, as has happened in
Lord Davies said this was UK With countries in the in a government- much of the private sector.
companies’ “last chance”. If no Middle East rocked by commissioned report, that Company final salary pension
progress is observed, statutory revolt, managers have found public-sector-defined benefit schemes now closed to further
quotas will be brought in. themselves caught between schemes be based on a career accrual from both existing and
illUSTRATiON qUiNTON WiNTER phOTO CORBiS

Companies seem to their contractual obligations to average rather than final new members have risen to
have got the governments’ and protesters’ salary. He also recommended 17% of all schemes.
message, demands. Vodafone defended that the retirement age for
however: itself after it acceded to an all public sector workers be
according to
headhunters
Egon Zehnder
Egyptian government demand
to shut down the mobile
phone network and then
raised to 65 and then rise in
line with increases in the state
pension age. Unions have
7 European Court
bans annuity
sex discrimination
International, more sent out propaganda threatened action. Continuing the equality
than a third of FTSE 100 messages from the now- theme, the European Court
executive board posts ousted regime. Vodafone of Justice ruled that pension
had gone to women in
the first few weeks
of 2011, compared with
said it was legally obliged
to act as it did and had to
put its local employees’
6 ...but final salary
schemes face demise
Lord Hutton did not, however,
providers can no longer
grant men better retirement
annuity rates than women.
just under 15% last year. welfare first. suggest that civil servants Men had long received


News

bigger pension payouts on nine to FiVe
the grounds that they did not
live as long. The pensions asiF VaLi
and insurance industry said Business manager
the difference was based on of British boxing star
sound actuarial principles, Amir Khan and owner
but the court ruled that this of multiple childcare
differential contravened 49% of HR and transport
European Union equal- business leaders businesses, the
rights provisions. say their firms demands on vali
are held back by could easily be 24/7.
a lack of fresh Determination and

8 Public sector pay-
cap idea capped
Another Hutton-authored
talent. Bersin
& Associates’
discipline help him
keep control

government review into fair
Q1 2011 0500 My son is up, and are turned down. As soon as
pay in the public sector, this TalentWatch® my first meeting of the day he’s back, we fit in as many
one by Will Hutton, dropped survey also is always with him. Before activities as we can.
the idea of capping the pay unearthed that I leave the house, we do our
of top civil servants at 20 nearly half of all morning prayers. 1200 Lunch is whatever my
times the salary of the lowest organisations secretary has left-over, and
paid employees. Mr Hutton say they find it 0700 I’ve checked in with always at my desk.
recommended that public hard to fill key my transport business,
sector organisations publish roles – up from which will have 40 people 1400 If Amir is abroad,
their top-to-bottom employee 35% last year. on the road. Next, I check I check in to make sure he
pay ratios and that senior in with my childcare has everything he needs.
executives’ salaries be more businesses – I employ
performance-related. about 70 people – to make 1600 A meeting at Gloves
sure everything is all right. Community Centre (set up
by Amir) to make sure the

9 Call on companies
to mentor students
Science-based companies
0800 At the office, the
first call of the day is to
the lawyer, to catch up
kids have what they need
and the volunteers are in
place. This is where I get
could improve the job and life on anything that has my rewards; knowing that
prospects of students from happened with Amir: you charge a kid only £1 for
poorer families by arranging contracts, sparring, venues, them to train in one of the
workplace experience for promotions and so on. best facilities.
them and by mentoring them 47% of
at school, according to a UK-based 1100 Answering emails. 2130 Time to wrap things
report from the Organisation international I get about 200 a day up. The Americans are
for Economic Co-operation companies and 70% are related to online and they’ll keep
and Development. The manage Amir – media, charity and you up until 3am if you are
report also found that poorer succession appearance requests. While not careful. By 10pm, I say
students who succeeded in planning he is in training, all of those “that’s enough!”
science tended to have a more globally,
positive attitude to science- compared
based careers. to 69% of the BottoM Line ShORT, ShARp
organisations AND SMART SECRETS TO SUCCESS
based in
10 Visa system
accused of
hampering business
Western
Europe or North
“Challenge and question
everything. the highest-
America. This is performing teams are those that
Companies claim that the
visa system for foreign
the conclusion recognise that if they do things
of Personnel in the way they’ve always done
visitors to the UK is severely them, they will get what they’ve
damaging their businesses. Today and
international always got, and are curious
The companies, led by about finding a quicker, more
luxury retailers, say that visa HR software effective way of doing things.”
restrictions mean that non- company Jeff Grout, motivational speaker
European Union business Cezanne, and author of Mind Games:
and leisure visitors are which recently Inspirational Lessons from the
increasingly choosing to go to polled 200 World’s Biggest Sports Stars
continental Europe instead. professionals.


Last call for trustees meetings in London and the Wright stuff
Don’t miss your chance, an annual strategy day. John Briscoe Wright CBE,
as a CMI member, to join You’ll also act as a CMI CCMI and immediate past
inBrieF our Board of Trustees and ambassador at events. national chairman of the
help shape the strategy For detailed criteria and Federation of Small
of the CMI. Apply by 31 a nomination form, go to Businesses, has been
May if you are interested www.managers.org.uk/ appointed to the Prime
in one of the two Board elections or contact Valerie Minister’s Business
vacancies. If elected, you’ll Hamill (t 020 7421 2707, Advisory Group. The group
serve for three years from e Valerie.hamill@managers. meets the Prime Minister
October, attending quarterly org.uk). and Business Secretary on

risks must rise as
business priority
Cyber security threats are posing
a serious risk to the majority of
UK businesses, says a Cmi report.
The report, Managing Threats in
a Dangerous World, examines how
prepared organisations were for the
unexpected over the past year, reinforcing
the value of proactive planning.
nearly two-thirds (62%) of managers
report that cyber-security threats
are increasingly posing a risk to their
business and 32% of UK organisations
have come under attack in the past
12 months. The weather also caused
problems: heavy snow affected 92% of Be prepared for
emergencies by
companies; while the volcanic ash cloud constant planning
had an impact upon 53%.
The findings also show that the recent
media focus on high-profile business Future PerFeCt:
continuity failures has had a big impact hoW to Be reaDy For
on the UK’s business planning, with virtually anything
15% of managers feeling that Deepwater 1. Put together a team of specialists
Horizon had strengthened the case for from across your business to identify
business continuity management, and critical business processes that would
prevent or diminish its ability
14% believing Wikileaks had caused their
to operate and plan for them.
organisation to review security options. 2. Integrate business continuity
However, despite 82% of those planning into the wider management
surveyed reporting that their senior strategy – understanding threats
management views business continuity and putting processes in place to
management as important or very mitigate them can give businesses 32% of UK organisations have come under a
important, just 58% say they have plans a competitive advantage. cyber-attack in the past 12 months, with 12% of
in place to cater for the unexpected. 3. Test your crisis plans regularly companies losing confidential information.
nonetheless, the report shows clear to ensure that they are comprehensive
and robust – a quarter of organisations
advantages for organisations that have
with crisis plans have never tested
crisis plans in place. of those who had them, running the risk that the
to activate plans, 84% agreed it reduced plans don’t work when they are
disruption and 77% stated that the costs most needed.
are offset by the business benefits. 4. Ensure that coordinating a media
ruth spellman, chief executive of response is part of all plans – 61%
Cmi, says: “every time an unexpected of managers believe that reputation
event interrupts the operations of a damage is now a more significant
business, charity or public body in this threat to their business than
financial loss.
country, UK plc suffers – yet with good
5. Ensure your key suppliers also have
management, this could be avoided.” crisis plans in place – just 5%
To download the report or get free of organisations check whether their 84% of those who had to activate crisis plans
advice on crisis planning, visit supply chain will be able to survive said they reduced disruption. 77% said the cost
www.managers.org.uk/bcm2011 a major disruption. of the plans is offset by the benefits they bring.


Agenda
a quarterly basis to advise President to be awarded past 25 years and recognises explore your social side
them on issues of concern Chartered Manager status. those who have excelled Is a social media strategy
to UK business. For updates, Read more at www. in areas such as guiding on your agenda? Discover
visit www.managers.org. managers.org.uk/cmgr strategic direction and the business benefits and
uk/professionalmanager developing organisational pitfalls associated with
going for gold culture. Nomination forms are this new media – and
Leading by example Nominations for CMI’s available from matt.beavan@ how to manage it
Terry Morgan, chairman prestigious Gold Medal managers.org.uk and the effectively – in CMI’s
of Crossrail and president award are now open. The winner will be announced at new practice guide. Visit
of CMI, has made history medal has been awarded to the CMI National Conference www.managers.org.uk/
by becoming the first CMI inspirational leaders for the in October. social-media-guide

in memoriam
uK business loses an
inspirational educator
John Constable, director general of Cmi (then the British
institute of management) in the 1980s, has died.
in the heaDLines John’s name was synonymous with management education,
HOW CMI HAS MADE best practice and business strategy. With roger mcCormick,
AN IMPRESSION ON he created a report that has led management and business
CMi engages THE PRESS RECENTLY
thinking for more than a generation. The Making of British
PriMe sky news carried Managers saw that good management and quality leadership
Minister a report of cmi’s affect economic performance, but found that UK management
“Tomorrow’s Leaders” fell short on training and development.
Cmi’s Ceo ruth spellman survey, which flagged Using the skills and knowledge he had developed working
is part of a new independent up managers’ concerns for the likes of Cranfield school of management and imeDe
employer-led taskforce about the readiness of Business school in switzerland, he also led a review of the
backed by the prime minister young people for work. provision of management education, undertaken with the CBi.
– and set up to improve levels [Sky News Online, During his tenure at Cmi, there was increased activity
of employee engagement. 4 March 2011] between membership Branches and local schools. We will soon
launched at a round-table launch an initiative aimed at 14- to 21-year-olds. it is inspired by
in march with David Cameron the Press association John’s work and ensures that his legacy will live on.
and employment relations carried comment
minister edward Davey, from Ruth Spellman
the taskforce is a chance for on the importance of PresiDent’s Dinner
leading professionals from the cooperation between
public and private sectors to schools and employers CMI Fellows, Companions and
discuss ways to help stimulate to develop leadership Ambassadors are to debate key
employee engagement and skills, in support of the management issues and socialise over
support those organisations launch of Campus CMI a three-course dinner with our new
looking to implement in March. [3 March 2011] president, Terry Morgan CBE CCMI.
engagement practices. The event takes place at the Corinthian
The group is set to build The Sunday Times Club, Glasgow, on 1 June. It begins at
on the report ‘engaging for highlighted CMI’s 6.30pm with a drinks reception. It follows
success’, written by taskforce sponsorship of the the President’s Dinner at the Honourable Artillery Company
chair David macleod and Best for Training in London, which Terry hosted with CMI chief executive Ruth
deputy chair nita Clarke for and Development Spellman in February. At the dinner, Charlie Mayfield, John Lewis
the Department for Business, category in the chairman, who chairs the UK Commission for Employment and
innovation and skills in newspaper’s 100 Best Skills, showed how best-practice management helps companies
2009. The report looked Places to Work list. The thrive, while 80 guests welcomed Terry to the presidency. For
at issues such as barriers training award winner photos, visit www.managers.org.uk/presidentsdinner11 Tickets
to the wider adoption of was charity Llamau. for 1 June (£65) are selling fast. Email agatha.sutcliffe@managers.org.
engagement, how to harness uk For more info, visit www.managers.org.uk/glasgowdiningclub
engagement for innovation
and how to maintain morale ManageMent sPeaK
through difficult times. By
collaborating with academics,
practitioners and think tanks, Crisitunity 1. n.The point at 2. attrib. An episode of The Simpsons,
the taskforce aims to tackle which a crisis provides a unique in which Lisa mistakenly informs her
these issues, offer practical window of opportunity. The term father Homer that the Chinese words
guidance, share examples of gained has currency during the for ‘crisis’ and ‘opportunity’ are
good practice and generate economic slump. the same.
debate via a new website.

Agenda
PoLiCy WatCh

George Osborne’s so-called Budget for Growth made some
attempt to fix the UK’s economic problems. But firms are still
gloomy – and the Government must work harder, says CMI
policy and research director louise Brooker-carey

chancellor must revive optimism
ollowing weak GDP Outlook” survey went live in the 10 managers felt that the Budget

f figures at the end of
2010, much of the
wake of the Budget. A look at the
interim results highlights some
would improve their organisation’s
prospects for the year ahead.
policy debate in the first serious challenges. Around half reported that it had
half of 2011 has been about how First, around 80% of managers made things worse.
the Government can best promote still feel that the economy However, Osborne’s
economic growth. Chancellor is negatively affecting their commitment to create a more
George Osborne set out his organisation. Fewer than one in skilled workforce is welcome. The
approach in March with the Budget 10 felt conditions were having chancellor announced support for
and a new Plan for Growth. a positive impact (with the 50,000 apprenticeship places, and
While the need for growth is remainder neutral). We might a doubling in the number of the
agreed on across the political expect public sector managers new University Technical Colleges.
spectrum, fundamental differences to be feeling the effects of the The colleges are being supported
exist about how best to achieve it. Government’s austerity measures. by CMI – we are leading a working
For many, particularly on the right, What is surprising is that a greater group of professional bodies
the key is to reduce the “burden” number of private sector managers on behalf of the Baker Dearing
imposed by Government on report negative effects than they Educational Trust, the body
business in the form of regulations did six months ago. Worse still, establishing UTCs.
and taxes. But many on the centre private sector managers are less CMI welcomes the aim
and centre-left have challenged optimistic about their prospects of creating a more educated
the focus on deregulation and for the next six months: for the workforce and Osborne was
called for a more active role for first time since 2009, those with a right to draw attention to the gap
Government. This month’s View pessimistic outlook outweigh those between the UK and international
from Westminster article (see page with an optimistic outlook. skills levels. But his aim must
15) sets out some Labour criticisms So, did the Budget mitigate be backed up with a long-term
of the Government’s strategy. this misery? Responses to a new programme that improves
But what do CMI members think question looking specifically at skills. Achieving that will be a
about the prospects for growth? the impact of the Budget are not challenge for all policy-makers and
Our twice-yearly “Economic encouraging. Fewer than one in politicians in the coming years.

The Code of Ethics gives CMI members a abide by professional guidelines at work,
touchstone for good practice and sends demonstrating that codes of practice
a clear message to your peers and your help company leaders set an example
CoDe oF organisation that you meet the highest for others. Sadly, the same survey
ConDuCt standards of accountability and integrity. showed that 36% are not governed by an
The Code has been reviewed by the employer’s or professional body’s code
Professional Standards Committee (PSC) and, of those that are, nearly 25% have
and is now reissued. The revised Code never read their relevant code.
CoDe reaD?
illUSTRATiON qUiNTON WiNTER

retains the spirit of the former Code, but By distributing our revised Code to our
CMi’s code of ethics for has been made more concise. It uses more members, CMI is providing a clear and
members revised accessible language and focuses on the robust standard that provides you with
important place of integrity and trust and real value in your career. A copy of the
the role of responsible leadership. revised CMI Code is included with this
In a recent CMI survey of 1,000 issue for your reference.
non-member employees, nearly 60% If you want to feed back on the Code, or
of those surveyed would think better are interested in the work of the PSC, email
of a manager if they made an effort to valerie.hamill@managers.org.uk


view from Westminster

Businesses Cannot
groW it aLone
if the private sector is to rejuvenate the economy, it needs
vision from Government, not news of rising unemployment
and a decreased number of adult learners. Does the Government
have its priorities right? John denham isn’t convinced

n the weeks leading up to of the challenge facing work experience will be

i the Budget and the Growth
Strategy, the message from
our economy and the
close link between state
a very small proportion
of young claimants and
the Government was clear: spending and private- that the scheme is about
this will be a pro-growth plan, designed sector growth. Chaos in building their CV rather
with not just this economic cycle in view. planning policy, cuts to than guaranteeing a
It will look to the medium- to long- term science and technology permanent job.
vision setting out how Britain could pay investment and damaging Nor do 50,000 new
its way in the future. changes to energy policy apprenticeship starts per
But was this achieved? Although some have all undermined year replace the 500,000
measures in the Growth Strategy were business confidence, training places lost
sensible – such as building on Labour’s and the slowdown in name John Denham through the scrapping
record for improving access for SMEs manufacturing growth Party labour of Train to Gain, which
seat Southampton itchen
to public sector procurement – it lacked in March due to weak first elected 1992 equipped employees
the long-term vision and systemic consumer spending current majority 192 with the skills businesses
approach that we need for growth. The showed that even former ministerial roles need to expand and
Government is cutting the deficit too far improving sectors are Secretary of state for remain competitive.
innovation, universities
and too fast, resulting in slower growth, fragile. The Growth and skills (2007-09) and The Government has
rising unemployment and increased Strategy fails to address communities and local said that total adult
public borrowing. We know that growth the prevalent economic government (2009-10); learners will decrease by
cannot be achieved through diktats uncertainty experienced minister of state for health 529,000 by 2013, taking
(1999-2001) and home
by managers, and office (2001-03) more of the skills needed
the Office for Budget Political compass for growth out of the
“The Government Responsibility has Centre-left employment market.
is cutting the deficit predicted that they will
have to operate in a
Voting reCorD
The resilience of
the British people has
too far and too fast, greater schools autonomy
post-budget environment Moderately against never failed to bring our
resulting in slower with a reduced growth transparent parliament
Moderately for
country through tough
forecast, increased economic times. But
growth and rising unemployment and
eu integration
very strongly for this resilience needs to
unemployment” a further corporation be met by action from a
tax cut that will government that takes a
have ‘minimal effect’ on growth. systemic, long-term approach to growth
from Whitehall. Jobs must come from Developing the skills of our workforce that ensures nobody is left behind. We
the private sector. But government is vital for securing long-term growth. haven’t seen it during the first wasted
policy plays a crucial role in creating the But the 40,000-place expansion of two- year; let’s not make it two.
environment for private-sector growth. month work-experience placements will
Its wasted year could very easily become not improve young people’s employment John Denham MP is shadow secretary of
a wasted two years. prospects in the same way that six state for business, innovation and skills
The disappointing, but not entirely months of real work would, as proposed and is leading Labour’s business and
unsurprising, Q4 2010 contraction by our party’s call for a £600m Youth enterprise policy review, ‘How Britain
sounded an alarm for managers in all Jobs Fund. The Government itself has can lead the world in enterprise and skills
sectors, highlighting both the sheer scale already said that the target group for and ensure no region is left behind’.


Should
I was practising as a
solicitor before the last
yes government changed

sacking
the previous unfair
dismissal period from
natasha Jones two years to one; it is
Solicitor and my understanding that

be made
head of Cheshire claims have increased
Employment law year-on-year ever
since. My experience
as an employment

easier?
lawyer is that most
employees know
their rights – better
than employers
know employment
legislation – and will
avidly litigate. Staffers will have to work for two
A fear of claims can act as a deterrent to
businesses taking on new employees. I meet many years before being able to file an
entrepreneurs who tell me light-heartedly that it unfair dismissal claim, under new
is unlikely that I will get any work from them as
an employment lawyer – they’re not taking on any
government plans. Ben willis asks
employees, mainly because of the red tape. whether extending the length of
I believe the current rules hinder the ability mandatory service from 12 to 24
of companies to grow which, coupled with
the increased unemployment throughout the months makes sense
economic downturn, is very relevant. Last year
the Department for Business, Innovation and
Skills stated that at the start of 2009 there were
an estimated 4.8 million private enterprises in
the UK. Almost all of these – 99.3% – were SMEs
of up to 49 employees. The survey estimated
employment in SMEs had fallen by 102,000 to
13.6 million people at the start of 2009.
I believe that 12 months is a short space of
time in the context of induction and training of a
new employee and so employers are reluctant to
take people on for fear of being sued. As soon as
an employee completes 12 months’ continuous
employment, it becomes more difficult to dismiss
them, so they simply don’t take the risk – or Join the
dismiss them before the 12 months is up to avoid deBate
any claim. If it went back to two years, then the
entrepreneurs who want to grow their businesses
have got two years to employ staff before fear of
being sued and therefore stand a better chance of Concerned
growing into healthy companies. about the new
Employees who have 12 months’ continuous government
employment can bring an unfair dismissal claim plans over
at no cost to themselves. The employer then has unfair dismissal
to spend time defending the claim or money on claims? Email
getting a lawyer to defend the claim. If you’ve got professional.
to wait twice as long to bring a claim, that could manager@
lead one to think there will be half the amount of managers.org.
phOTO CORBiS

claims. It won’t be as simple as that, obviously, uk or visit www.
but if you have to be employed for another year, managers.org.uk/
then all of those employees out in the first 12 blog to have
months would not be able to issue a claim. your say.

16_ professional manager _ May / June 2011

Debate

CoaLition I’m not vehemently
CLaMPDoWn opposed to these
no proposals; I just don’t
Earlier this year, think they’ll make
business secretary much of a difference.
vince Cable outlined
karen mannering If a manager wants to
plans to double the
Company owner and get rid of a member
amount of time an
author of Managing of staff, there are lots
employee must hold
Difficult People of ways of doing that
his or her job before such as reorganising
being able to claim the company and
for unfair dismissal making them
if sacked, from one redundant – whether
year to two. The the unfair dismissal
Government said period is one year or
the tribunal system two is irrelevant.
was “costly and Judging by attitudes
time-consuming” for I have come across
struggling businesses, during management courses I run, managers just
revealing that the don’t want to deal with staff performance issues.
number of tribunal However, these proposals will give weak
claims rose by 56% managers an excuse to keep people on for a bit
between 2009 and longer and then get rid of them after two years.
2010 to a record Rather than dealing with performance issues
236,000 claims. straight away, they’ll be able to delay. I would
The pendulum argue that this delay makes it even more difficult
on the employment for the manager, however, because by the time
tribunal qualifying two years are up the employee will not only be
period has swung well established within the company, but their
between one and two personal life might also be more affected as the
years under the last employee may have taken on loans or mortgages
two governments. based on their job and salary.
The last Conservative These changes might also affect existing
government changed employees’ motivation. With the economic
it to two years, but it downturn, I have been dealing with a lot of
was restored to one people who are feeling very unsettled at work
year by the subsequent all of the time and would like to have some
labour government. sort of stability. But they can’t have that if
One of labour’s they are fearful that their job has not actually
justifications for been confirmed, and so that will really affect
changing the tribunal people’s motivation.
period back to one Finally, the proposals also mean there’s
year was that a two- a danger of having employees working for a
year period unfairly company for as long as 18 months, but never
discriminated against really psychologically engaging in what they’re
women. When the doing because they fear they might not be
proposals to turn the staying in their job. People in this position are
tribunal period back unlikely to be working at peak performance
to two years from one because they might not be concentrating
year were announced properly, and may be distracted by considering
in January, the shadow their options, for example, looking at the
minister Yvette Cooper job advertisements.
argued that this would It all makes for a most unsettling situation,
be the case again – and managers may find that staff leave anyway.
because women are If they’re coming up for their two years
more likely than men and feeling uncertain about whether or not
to be in jobs for less their job will continue, it is very likely the
than two years. employee might start looking and find
something better.


interview

Simple
pleasures
Innocent’s Karen Callaghan believes
great firms find the perfect fusion of order
and chaos – while doing the basics, better.
Her recipe works, says Ben walker

It all seems a bit contrary. Karen Callaghan is standing amid the
psychedelic chaos of Innocent’s Fruit Towers HQ, leaning against
a forest-green astroturf wall that is pockmarked by cartoon-style
daisies – extolling the virtues of simplicity. “Whenever people ask
me about being innovative, I just say
we do the simple things, better,” says
Callaghan, Innocent Drinks’ people
director. “Simplicity in objectives: if your
people don’t know what success looks
like, how can they be successful? And
simplicity in conversation: we always say
why wouldn’t we just tell the truth? If it’s
DynaMiC important to people, we will share it! It’s
DesKs very simple.”
“We like to mix it up, Yet simplicity is not the word that
so people don’t sit springs to mind when I look around.
with their teams and There’s clutter and chaos everywhere:
the founders sit with the walls are covered in vividly coloured
everyone else. So handwritten notes; someone has hung
i sit surrounded by iT up bunting designed in the manner
developers. i didn’t know of country-kitchen tea towels; and,
the first thing about iT, if you swing your head up, there’s a
i still don’t, but i have menagerie of plastic farmyard animals
become more interested staring down at you. Contrary maybe,
phOTO ChARliE BEST

in what they do. Mixing but the contradiction is beneficial,
it up makes people more says Callaghan. “My dissertation is on
independent in their complexity theory,” she says, referring
thinking, given that to the MSc she’s studying towards. “The
we don’t necessarily rely theory says that complex systems are at
on a teammate sitting their best when they are on the edge of
next to us” chaos. We need process and structure; but


also flexibility and space in the system.
A system can go both ways. Too much
process, and it becomes too static and
can’t adapt; too chaotic, and it becomes
inefficient. The Holy Grail is to get the
right amount of process and chaos.”
Here, they manage just that, every day.
Innocent’s products are loved by their
customers – they have become a British
success story in a time when there have
been too few of them. And they keep

“A system can go
both ways… The
Holy Grail is to get
just the right amount
of both process
and chaos”
creating great new products, never
seeming to run out of ideas for delicious
flavours. Given their achievements as
a firm, I start to think that Callaghan
might be on to something when she
says order and chaos are actually
great bedfellows, opposites that can
be made to complement each other. Karen
Certainly, working in such an untamed CaLLaghan,
milestones PeoPLe DireCtor,
environment must stimulate the little innoCent DrinKs
grey cells. “It can be an energising
workplace,” she says. “It was never 2006
planned. It’s the staff that have filled it people director –
up with all this stuff. That is what’s given innocent Drinks
it its organic feel. What you hear is just
the hub of conversation; it’s just people 2002
meeting, doing their work. It certainly head of graduate
sounds like it’s on the edge of chaos!” recruitment and
development / diversity
& inclusion – Standard
Process paradox Chartered Bank
The noise; the crackpot décor; and
Innocent’s cuddly, kindergarten-style 2000
branding contrive to give people an people strategy & hRM
impression of the company that doesn’t consultant – Andersen
really hold water – or, indeed, kiwi juice.
“We are very entrepreneurial, but also 1997
very process-orientated,” says Callaghan. various hRM roles
– United Biscuits
“That’s often a surprise to people.”
While Innocent lacks the staid, education
clinical feel of many big food and MSc, people
drink brands, its values are thoroughly & Organisation
businesslike, corporate even. Innocent Development (2011),
is not in the business of seeking out the University of Sussex
weirdest and most outré people Britain
has to offer. In fact, everyone seems very BSc hons, Chemistry,
nice, bright – and normal. “We have to be 1st class (1997),
University of leeds
careful that people don’t think it’s about
being mad or wacky or about being an
extrovert,” says Callaghan. “Whether you


are a geek, or you want to wear the wacky
T-shirts, then go for it. But I’m more
concerned about people being good at
their jobs – so we sweat the recruitment
process. We try to identify the difference
between good and great candidates,
and say, ‘let’s look for that’.” Callaghan
shows me some software that keeps a
live record of all Innocent employees’
targets and how they are measuring up
against them. “We have 95% compliance
on employees’ objectives,” she says, “and
the 5% we don’t have is probably because
someone forgot to post them up. Lots
of companies say that their internal
processes and their people reflect their
espoused values. But I genuinely believe
that ours do. When recruiting, we ask
whether the people we meet are going
to enrich the culture and strengthen our
values. Is the company going to be better
with them on board?”

Money motive
Innocent strives to be all the things
the public might reasonably associate
with a brand that runs hippyish music
festivals in London parks: it tries to be
environmentally proactive, it advocates
fair trade with its suppliers. But its focus
is the same as every successful business
– commerciality. “Our values are not that
soft, fluffy or ephemeral,” says Callaghan.
“But they capture the things we are, the
things we care about, the things that self-conscious about it – given most of
make us successful. Not just the things us here are pretty into health. But I also
we aspire to, which is why, I think, that drink a lot of Innocent smoothies, as you
they resonate well with the team.” might expect!”
The commerciality of the business There’s no pretense with Callaghan.
was highlighted last year when its She’s slightly troubled by the
photographer’s assistant preening
her hair – “too bouncy, I don’t really do
“Our values are not polished” – and I get the feeling that the
that soft, fluffy or whole company is like this: what you see
ephemeral. But they is what you get. Another of Innocent’s
brand values is ‘be natural’, and,
capture the things incredibly, given that I’m a journalist,
we are… not just the everybody I meet is. “Think about
our product,” says Callaghan. “It’s an
things we aspire to” unadulterated, natural product.” The
same should go for Innocent’s people,
directors sold a majority stake to Coca she says: “Be professional – but bring
Cola. The soft-drinks behemoth now yourself to work! Bring the best version
controls 58% of Innocent, but Callaghan of yourself. ”
is not worried. In fact, she seems quite It’s a compelling confection, but can it
keen on the products of the new mother last? As Innocent gets bigger, so must it
Above: innocent’s
company – and spends some of the handle change. Not only has Coca-Cola messageboard
interview sipping a Diet Coke. “I drink taken over, but the company is leaving contains vividly
it with pride!” she says. Did she always its Fruit Towers HQ, tucked away in coloured
well-wishes
drink it in the office? “Well, when I first Hammersmith, and moving to the from guests
joined I might have been a bit more sparkling Portobello Dock on the other and customers


Professional Manager magazine May Issue 2011

Professional Manager magazine May Issue 2011

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Professional Manager magazine May Issue 2011