The cost of finance

The right investment is crucial to the successful growth of a business, particularly in challenging economic times.

Whether you’re a startup or a mature organisation, one of the most important ongoing decisions is about sources of finance.

Debt and equity provide a way to develop products, services and technology, fund growth and survive challenging economic times, but both come with a cost.

Debt (such as loans and overdrafts) comes with the obligation to pay it back. The cost of interest can quickly spiral without due attention. There is no legal requirement to return shareholder equity, but company control can quickly be diluted. Often a good way forward can be a combination of the two.

However you choose to fund your business, the key is to ensure the financing strategy fits with your risk appetite and put regular reviews in place so you always have the right balance. Shopping around can help find cheaper options so you aren’t overpaying.

The ICAEW has published a great guide to the wide variety of options for business owners (opens as a PDF) that’s worth a look.

Alternative funding sources

Of course, debt and equity aren’t the only ways to get money into a business and to offset costs.

Access to finance can come in the shape of grants, voucher schemes and tax credits too. Successfully applying for what’s available nationally and in your region can make a huge difference to your company’s financial health and sustainability.

Industry bodies, independent networks, local authorities and Growth Hubs often offer funding and support outside Government-led schemes.

Entrepreneurial directors who have built innovation into their businesses have several possibilities. Some of the more popular current ones include:

·      Research and Development (R&D) tax reliefs

If your business is working on a research and development project that aims to advance the areas of science and technology, you may be able to claim Corporation Tax relief. There are specific rules for SMEs, while larger companies can claim R&D expenditure credit (RDEC).

·      Innovate UK Smart Grants

Innovate UK, part of UK Research and Innovation, offers funding for game-changing and world-leading ideas designed for swift commercialisation. Ideas need to be genuinely new and not just disruptive within their sector. According to the website, to take part in the current competition, which opened this June and closes in September 2023, projects of 6 to 18 months must have total eligible project costs between £100,000 and £500,000 and can be single or collaborative. Projects of 19 to 36 months must be collaborative and have total eligible project costs between £100,000 and £2 million.

·      Innovate UK Future Economy Loans

Scaling micro, small and medium-sized businesses can apply to Innovate UK for innovation loan support with late-stage projects that will significantly boost the UK economy. Projects focused on future economy areas are of particular interest.

·      Knowledge Transfer Partnerships

Knowledge Transfer Partnerships (KTP) are a potential route for organisations wanting to improve their productivity and competitiveness. The scheme connects companies with a university, college, research and technology organisation or Catapult and engages a graduate to lead the strategic business project. There are two types of KTP – the first is focused on developing new or better products and services and the second is a management KTP focused on enhancing processes and building management capability.

·      Creative England Creative Growth Finance

Creative Growth Finance provides scale-up loans of £100k - £1m for UK businesses in the creative industries. Firms must demonstrate growth potential, be talent-led, develop new intellectual property (IP) and harness creativity with technologies.

If your business could benefit from a non-executive director who can help develop a future proof, differentiated market position that allows you to exploit emerging opportunities, manage risk, embrace innovation and navigate economic volatility, please get in touch.

Make identifying change drivers a management mission

According to the Cambridge Dictionary, foresight is:

“the ability to judge correctly what is going to happen in the future and plan your actions based on this knowledge.”

In a nutshell, it’s the reason why every management team wanting to stay in business should be regularly conducting a strategic analysis of its market position. This means looking internally and then externally at the micro and macro forces that affect how (and in times of crisis whether) the company can continue to service client needs.

If change is the only constant, staying ahead of the drivers of change needs to be a management mission. It’s certainly a core part of what I bring to the non-executive director role, helping to deliver external data, insight and objectivity to the Boardroom table as decisions are made about company direction.

What could the future look like?

There are a number of tools to help strategic analysis. The key to remember is that none of them offer a crystal ball but, by asking the right questions, help you understand market shifts that you may need to respond to.

Aside from risk assessment being a clear part of the UK Corporate Governance Code, the Institute of Directors (IoD) says:

“Success can be limited or enhanced by unexpected events both internally and externally.”

So, by knowing what to respond to and when, you have a chance to maximise performance, exploit opportunities and minimise risks as they arise. You also have a chance to evolve even before or as customers do by predicting latent demand.

Strategic issue tracking

The ‘Three Horizons’ model that can be found at Gov.uk is a useful resource and looks ahead at how strategic issues change over time.

Horizon One is the here and now and highlights issues that are usually central to current policy. Horizons Two and Three is where management teams should be focusing, looking at issues and faint market signals that are increasing in relevance over time. The aim is to adapt organisational policy and strategy in advance of future need by identifying what is driving the change and reacting appropriately.

These Three Horizons overlap nicely with McKinsey’s Horizons, which take a company from extending its core business model, to building a market by developing new ones and then creating new, more visionary options.

Futures and foresight work is a core skill for communicators

Creative agencies, like all organisations, have a multitude of choices when it comes to growth prospects, but this area is particularly pertinent as future and foresights work sits neatly within their services and capabilities. The work isn’t just valuable for the agency itself, but can help clients build resilience and growth too through the provision of this information.

‘The Role of Public Relations in Strategic Planning and Crisis Preparedness’, a joint 2023 report from the IoD and Chartered Institute of Public Relations, states that when employed as management function, public relations can: “not just help businesses navigate economic and political turbulence, but also thrive and grow.”

Got a takeover target? Here’s some acquisition advice

In my role as director at Wadds Inc., I work with ambitious creative agencies and communications teams dedicated to achieving growth with social impact.

M&A activity is at a high in the agency market. A challenging economy is prompting founders to evaluate their options.

Smaller agencies are seeking larger platforms. Larger agencies are looking for the opportunity to invest and develop in new markets.

We’ve never seen so much activity in this area in the three years Wadds Inc. has operated.

Asking the right questions at the outset can ensure that strategic decisions are evaluated properly and mitigate risk. 

Decision-making and planning

If you’re a management team thinking about buying or if you’ve a business in your sights, always consider these things up front:

·      Does the acquisition fit with your strategic aims?

·      Why is the business being sold and what is its reputation like?

·      Is the acquisition a good cultural fit?

·      What’s the likely timeframe for the deal?

·      Is the valuation method one you’re happy with?

·      Is the appropriate finance available to acquire a reality and if not how will you fund it?

·      Will the company you are buying’s team and contracts remain in place post-acquisition?

·      What guarantees and clawbacks need to be in place?

·      Is the manpower available to drive through the acquisition?

·      What will the impact on your current business be?

·      Who will lead the process and the company afterwards?

Competitor activity and defending market share should always be part of the equation so also ask yourselves - if you don’t buy the business, who might?

Risk, reward, and red flags

According to the Institute of Directors, around 80% of acquisitions don’t meet their declared objectives.

Advisers are paid for managing and executing the transaction and not on its long-term success, so being clear on the rationale is crucial. Growth, additional capability, and strategic alignment are all excellent arguments for pursuing an opportunity.  

Agreeing on boundaries and no compromise areas helps to ensure clarity for all involved and avoid missteps.

Realising the benefits

Integrating a new business brings challenges, but strong communication and conflict resolution can reduce friction and increase acceptance and engagement.

Ensuring everyone understands the vision, mission and values and the reasons for the acquisition can reduce workforce stress while the alignment process takes place, while clearly defined responsibilities, strategic goals and KPIs will ensure the greatest chance of success.

This post first appeared on www.wadds.co.uk on 05 May 2023.  

Affordable childcare is a business issue, not a women’s one – and we need to hear from fathers too, especially on International Women’s Day

Today, as part of International Women’s Day 2023, and in advance of the Spring budget next week, the British Chambers of Commerce (BCC) have published the results of a survey, which shows that tackling soaring childcare costs would positively impact the UK economy.

Of the 4000 female respondents, 67% feel their career has been hampered by childcare duties and 90% believe additional support should be available.

Shevaun Haviland, Director General of the BCC, said:

“Tackling these issues is integral not only to the wellbeing of our women and workplaces, it is crucial to the functioning of any strong economy.”

The study is a thorough piece of work, which reinforces the PWC report published in March, which shows that British women are being priced out of the workforce by childcare costs and that the ‘motherhood penalty’ has become the biggest driver of the gender pay gap.

However, there is one big omission; the voices of fathers, many of whom have strong views on the societal and workplace structures that impact both household earnings and career opportunities - and who recognise that their partners are disproportionately shouldering the burden.

And, although in much smaller numbers, there are also the men who have full childcare responsibilities themselves and feel like their experiences and opinions are being ignored.

As a lone parent, Steve Jackson from Northumberland, said:

“As an entirely solo, male parent I am so tired of reading about childcare as a women's issue. We need to get away from that entire mindset. Women shouldn't be the default carers and men who do childcare shouldn't be overlooked.”

It’s rare that men’s voices are marginalised, but they are frequently in this context, despite the desperate need for allyship and a united front.

A business issue, not a women’s one

Let’s not forget that childcare is not a women’s issue, but a business one.

Neither should women have to ‘shout louder’ and be better advocates for gender parity when they’re the ones being oppressed by the system. (Same goes for racial inequality).

That job lies with those in power and the policy makers who have all the data at their fingertips to make affordable childcare a ‘no brainer’ decision and who should be focused on equity for all.

And it lies with boards and management teams who can make better decisions about who they hire, the career opportunities they provide and the support they provide as life circumstances change.

Directors, particularly in private firms, have a unique opportunity to provide a voice for those without one and to give agency to those currently without power and influence in the workplace.

The UK economy needs women

The cost to the economy of losing women from the workplace following childbirth has been well documented.

According to the Centre for Progressive Policy, boosting mothers’ employment and earnings through accessible childcare would increase their earnings by between £7.6bn and £10.9bn per annum and generate up to 28.2bn in economic output per year.

In July 2021, the Financial Reporting Council, in partnership with the London Business School Leadership Institute and SQW published Board Diversity and Effectiveness in FTSE 350 companies. This looked at the impact of board diversity post the Davies and Hampton-Alexander reviews.

The results were stark:

“Higher levels of gender diversity of FTSE 350 boards positively correlate with better future financial performance (as measured by EBITDA margin).

“Likewise, FTSE 350 boards with well managed gender diversity contribute to higher stock returns, and are less likely to experience shareholder dissent.”

Wherever you look, the data tells the story. Better business outcomes are achieved when women are able to achieve and sustain well paid work, and have access to senior positions in organisations that enable and reward the different skillsets and perspectives they can bring.

The high cost of childcare is something the UK economy can ill afford, on multiple fronts. Everyone’s voice should be heard until this changes.

Public relations; a way to build organisational resilience says IoD and CIPR

I’ve spent much of the last decade evangelising about the benefits of public relations to organisations. Now a new joint report from the Institute of Directors (IoD) and Chartered Institute of Public Relations (CIPR) showcases its value.

Over the last ten years, much of my career has been focused on public relations as a management function; engaging with organisations to demonstrate how they can use it strategically, and promoting the skills practitioners need to in order to engage at board level.

It’s therefore been a privilege to lead and edit a new report from the IoD and CIPR into the ways businesses can best employ PR to ride market turbulence and ensure their fitness for the future, something that’s needed more than ever with the UK’s current economic instability.

The report provides an analysis of how the SME marketplace currently understands and uses PR and also provides practical guidance on how to use it in:

• Strategic planning

• Stakeholder mapping and engagement

• Risk assessment, crisis preparedness and management

• Internal communication

• Public affairs and lobbying

• Horizon scanning

• Board measurement and reporting.

You can access and download the report here.

As IoD Director General Jon Geldart says

“Public relations has a significant role to play in organisational decision-making, promoting awareness and protecting reputation. I would encourage all boardrooms to consider how best to invest in this important management function.”

My thanks go to the IoD and CIPR for commissioning the report and to all the contributors, who are leading experts in their fields.

Death, the problem there’s no solving

On 2nd December, my ex-husband, the boys’ Dad, died suddenly.

The trauma has turned all our lives around, but any pain has been nothing compared to watching my children try to make sense of their monumental loss. This is truly the hardest part of the journey we’re on. Nothing can replace what they have lost – it’s the problem there’s no solving.

The following thoughts about death and the grieving process move around my head a lot. I’m putting them to paper as selfishly it helps me, but perhaps sharing them might help others too. I’m keen to hear other’s views as everyone’s experience is unique.

Here’s what I’ve learned so far. 

Lean into your feelings

For me, sitting with the discomfort and pain has been an important part of the process. Doing stuff is good if it helps but risks kicking the issue into the long grass.

I’ve been lucky because in the early days after sleepless nights with my kids, when I couldn’t function, my husband Stephen quietly and seamlessly made everything happen. I needed to combust a bit in order to heal and I’m finally starting to see the wood for the trees. Sometimes you can’t go any faster than you can go.

People around you might expect you to move forward more quickly or be surprised by your grief; don’t let that bother you. 

Neither let them stop you showing your grief, perhaps “because you need to be strong for the kids”. Children need to understand how to identify, feel and deal with emotions. Sharing in their sadness can never hurt and can be really constructive as together you find ways to remember the person who is loved and missed. 

In our house we have created a special music soundtrack on Spotify, have a memory jar and the boys have their own personal memory boxes. Outside we have a Letters to Heaven postbox that anyone in the community can use and it’s already receiving letters.

I’m not frightened to cry in front of my boys; I want them to see it’s ok, that it’s normal and know they have permission to cry too.

When it’s shit, it’s shit

People will try and provide solutions to the challenges you face in your new life. It’s well meaning but also not always what’s needed. There is huge solace in someone sitting with you and just listening or being there even if they don’t know what to say. Sometimes acknowledging how shit things are is everything. 

As soon as you’re able, do the hard work. Seek professional support. Access is tough right now due to pressures on our health service but go to your GP and ask to be referred. Unresolved grief can affect every aspect of your life years later - don’t let this happen. The grief counselling I had in my 20s is invaluable now, as are the sessions I’m currently having in order to manage.

Similarly if you want to be there for someone, but don’t know where to start, there are loads of resources out there. Winston’s Wish is a brilliant charity for bereaved children. Sue Ryder have a fantastic #GriefKind campaign that gives you the tools to have the conversation. 

Money matters

Financial planning is crucial. When I say our life has been turned around, I genuinely mean it’s upside down. We’re lucky to have had savings to draw on to cover the unexpected extra life costs right now, but we’re having to recalibrate how I work and travel, which has a resulting impact of my earnings. 

Hand in hand with this goes planning for when you die. I currently have a laser focus on this and while I have no intention of going anywhere, Stephen and I know our kids will be provided for when the time comes. 

Find the upsides

Co-parenting - in death as in life - has its blessings and its curses. When I first divorced, the time away from my kids, who were 3 and 4 at the time, was excruciating. In time, I learned to be present for them during my half of the week, and to fill the days where they were at their Dad’s with heavy duty work and then also play. 

When Stephen and I got together and their Dad found happiness with his new life partner, the kids benefited from an extended family with extra role models and people looking out for them. 

Returning to a full week together has been hard for both us and the boys. As well as the huge hole their Dad leaves, they miss the rhythm of moving houses. A rigid routine provided stability but meant we were all institutionalised. Their Dad was laid back and they enjoyed that household vibe as a contrast to the slightly faster pace they tend to experience with us. 

However, the permanent move has had its benefits. When here, they’re home, and it’s exactly as life always is at ours. This has provided continuity and reassurance at a time when it’s very much needed. 

We’re only at the start of this journey and there are so many challenges to come. A current focus is reassuring the boys that I plan to be here until we’re all grey and old as they’re naturally fearful about me and my mortality, as well as their own.

The idea of Fathers’ Day makes me shiver but we’ll find a way to celebrate meaningfully. The work continues.

Anthony, you’re missed. We’re doing everything we can to ensure the kids not just cope but thrive.

If this has been helpful, Dan, Freya, Stephen and I have signed up for the Great North Run to raise money for Winston’s Wish. Please consider supporting us here. Thank you.  

Eroding brand values are damaging society

In the worlds I inhabit of leadership and communications, we talk a lot about purpose, vision, and values. These should be embodied by an organisation in an inspiring way, and ideally in a manner that places communities and the environment at the fore. Eroding brand values are damaging our society.

Values are easy to talk about, but action and behaviour show up the reality. And when values are ignored, people suffer.

Two videos really made me think about this over the weekend.

The first was from photographer Misan Harriman, who was powerful in his self-filmed response to Balenciaga, which has been heavily criticised for its now pulled Christmas campaign featuring references to child abuse.

Calling the fashion industry to account for its resounding silence, Harriman said:

“This is one of few situations where there is no grey area. There is no cultural nuance or political line when it comes to the safeguarding and protection of children. So, this could be a moment of reckoning for the industry that shows us where its moral compass lies…

View this post on Instagram

A post shared by Misan Harriman (@misanharriman)

“This moment is on you. You have to decide whether you can know that children are not being protected by the industry that feeds you and have what I would only describe as polite indifference. If we don’t see it, we don’t feel it. I pray this industry shows us who they are because the world is watching.”

An LBC caller to the James O’Brien show, who was appalled by the decision by ITV’s I’m A Celebrity producers to invite and pay Matt Hancock to appear on the show while he continues to earn as a sitting MP, similarly stopped me in my tracks.

The lady, who runs helplines for care staff and whistleblowers in the social care sector, said:

“The concept of celebrity has somehow marred this country… It’s got to the point where we need to look at this celebrity culture and think about our values and about what’s right and what’s wrong. Should entertainment not reflect our values as human beings?

'There's something very wrong with this country!'

Matt Hancock hasn't won over this caller who cries down the phone to @mrjamesob, saying she's 'outraged' that the former Health Secretary seems to be charming the country with his appearance on I'm A Celeb. pic.twitter.com/P8i9CvTBVS

— LBC (@LBC) November 25, 2022

“Most people, knowing what Matt Hancock has done, if they’d been on the end of our helpline, there would be no viewers of I’m a Celebrity. There would be zero viewers, if they heard what we’ve heard there wouldn’t be any programme…

“It’s appalling, the programme should be ashamed. We had care staff who were using sanitary towels as PPE, we had care staff that told us they were told to get used PPE out of dustbins… I am angry, I hope I’m always angry and I wish there were more people that were angry and disgusted. Then, there’d be hope.”

While different sectors and different scenarios, both examples are striking in their similarities.

Both luxury fashion house Balenciaga and I’m a Celebrity, through ITV, have power, money and influence, and access to the public at a scale many don’t. Both had a chance to model the way by setting an example for others to follow.

Referencing child sexual exploitation in an industry widely known for abuse was never going to end well, especially for a brand which says it is “pursuing progress within fundamentally important social issues”.

ITV says its social purpose is about “using the power of ITV to shape culture for good” and uses its “creativity and scale to inspire positive change in the world, and nurture a responsible and inclusive working environment.”

Yet Matt Hancock’s rehabilitation is now underway, thanks to exposure that other MPs can only dream of. That’s a dark legacy for a programme aimed at family viewing when a Covid inquiry has yet to ascertain exactly what level his poor decision making played in the deaths of 11,000 care home residents alone.

The economy: Expectations and narratives matter

Businesses should plan for the reality, not the general mood.

Today the North East Local Enterprise Partnership (LEP) held its annual Our Economy event to discuss North East economic prosperity and the cost of living crisis.

Kitty Ussher, Chief Economist at The Institute of Directors (IoD), Mohammad Jamei, Director of Economic Projects at the CBI and Mike Brewer, Deputy Chief Executive of the Resolution Foundation joined Richard Baker, Strategy and Policy Director at the North East LEP, to discuss income trends, investment, business growth and employment.

It was a sobering event. Each of the speakers pointed to a recession that will last most (if not all) of 2023, with a tight labour market, rising unemployment and falling income creating hardship.

As Brewer pointed out, the rising price of energy makes us all poorer and there is no agreement yet on who should pay for this.

Brewer also noted that all the ways in which households have been supported to date (such as council tax rebates, cost of living payments, the £400 energy bill rebate etc) will come to an end in April. 

Offering a small amount of consolation for homeowners - if not savers - was agreement from Jamei and Ussher that the Bank of England has signalled that interest rates are unlikely to rise in the way projected by the markets.

There was also some useful information to help with strategy planning and resilience.

According to the IoD’s data, business leaders expect inflation to peak in Spring 2023 and bosses should plan for this accordingly.

With SME order books flattening, Ussher reported that the top five business worries right now remain:

1.     UK economic conditions

2.     Cost of energy

3.     Global economic conditions

4.     Skills shortages

5.     Trading relationship with the EU

However, while business optimism was hit badly in October due to a combination of political instability and inflation, the Institute’s entrepreneurial membership continues to plan for growth.

There was an interesting debate about whether the media are denting business confidence by talking things down. Kitty Ussher had some sound advice for this too. Her recommendation was to ask the following questions in the boardroom:

1.     To what extent are we being affected by the mood, not the reality?

2.     How are competitors thinking and feeling?

3.     Has it become harder to pass cost increases through as people expect inflation to fall back?

4.     Do our staff feel confident or cautious about their position in the labour market?

5.     Have we planned for a lower interest rate environment as well as a higher one?

It’s clear that 2023 will offer many challenges but every single panellist added that it may not be as pessimistic as it first seems.

Public finances appear much worse because the economy has shrunk, but the Chancellor has a number of ways in which to respond. We’ll know more following the Autumn Statement on 17th November.

You can get a copy of the North East LEP’s Our Economy report here.

How to use public data for strategy planning

Arlen Pettitt is a marketing communications expert who advises organisations and agencies on how to use data in policy and campaign development.

Here he looks at the key considerations for anyone interested in data insights for their strategy planning.

• You’ve a policy newsletter for the North East called Wor Room. Why Wor and what is it about?

The newsletter is a weekly digest of policy and politics stories and the latest data releases, but it highlights the North East angle in each case. I was forever getting frustrated that the realities facing the North, and the North East in particular, were being hidden by umbrella numbers so I took it upon myself to put together these regular snapshots.

The name comes from a political war room - the place where campaign strategy is made -  and ‘wor’ is Geordie for ‘our’, so Wor Room - our version of that!

• In the face of a probable recession business owners are looking hard at their planning right now. What kind of public data is available to them that could be useful?

There is a huge amount of information out there - it’s just not always easy to find and interpret. In the case of National Statistics, they’re collected for a specific reason - informing policy decisions - but that doesn’t mean they aren’t useful for business owners.

Looking just at the Office for National Statistics, if you’re consumer-facing, for example, you might want an idea of the pressures facing your target market. There’s regular data on earnings, disposable household income, and consumer price inflation, which can tell you where people are having to spend more (food, transport, household goods). There are also weekly batches of data on the economy and social change - it gives an idea of consumer behaviour change, retail footfall, road traffic levels, consumer debit and credit card spending.

Those weekly batches are also a good place to start if you’re in a B2B space too, as it includes stuff like online job adverts and business price increases. Then there’s a business-focused equivalent of that telling you about their concerns, their price pressures, which sectors have passed on cost increases to customers so far, supply chain issues, import/export challenges.

It’s all about building a picture of the environment you’re operating in, and perhaps having a bit more context when making decisions and planning for the future. There’s always a whole lot more in the datasets under the headline publications too, so if you don’t quite find what you’re looking for, dig a little deeper.

• How can statistics and data tell a story and what are the ethical considerations when pulling a campaign or plan together?

Statistics and data can lend weight to campaigns or plans, but they can’t tell a full story by themselves - there’s always individual interpretation involved.

It’s important to keep in mind how and why data was gathered when you’re deciding how to use it. There’s always a temptation to look at data and stretch what it tells you a bit beyond what it can stand, or to omit something which contradicts the story you’re trying to tell.

As a consumer of data you’d ask yourself whether what you’re looking at is legitimate - think about the source, the conclusions being drawn, whether it feels like a complete picture.

The same is true when you’re the one publishing the data. Go into analysis with an open mind and try to pair the numbers with real world stories - the qualitative data - to give it proper context. And, avoid the temptation to stretch the data or conclusions beyond what they can stand!

• What’s an example of a really good piece of data visualisation that you’ve seen recently?

The first one that springs to mind was the Led By Donkeys kamikwasi.tax visualisation of the mini-Budget tax cuts from the beginning of October. It’s about twelve Westminster crises ago now, but it does a good job of setting out the scale of what was being talked about.

More generally I’ll give a shout out to the FT and to their columnist John Burn-Murdoch, who regularly produces incredibly insightful graphics-led pieces. For those who don’t partake, he usually puts the main points up on Twitter, outside of the FT’s paywall - here’s a recent one on income inequality comparing the UK and US (not very favourably) with Slovenia.

• The UK Statistics Authority has a Statistics for the Public Good Strategy to inform the UK, improve lives and build for the future. How important is this to society as a whole?

It’s about trust and transparency. We ought to be able to disagree with the approach or priorities of someone in power, but not need to question whether the evidence they are using is real.

The number of times Sir David Norgrove, who was chair of the UK Statistics Authority until March this year, found himself writing to senior ministers - and even the Prime Minister - to admonish them for misuse of statistics was incredible.

The Statistics for the Public Good Strategy does well to set out a clear vision up to 2025, and includes some bits around changing the approach to collecting data in order to better inform a faster-paced policy environment. That’s really important. A couple of the sets of data I mentioned above were the result of a change in approach that came from the pandemic, when policymakers needed data in as close to real-time as possible.

We live in a world where politics is generating more headlines than ever, and where data is struggling to keep up.

There’s no place for traditional analysis of policy impacts over months and years when the pace of debate means a politician can say something, be reported, and by the time they’re fact-checked, the spotlight has moved on. The record is never corrected.

The Strategy talks about being inclusive, primarily meaning the UK Statistics Authority itself being inclusive as an employer, and in collecting data that’s representative of the UK population. But there’s another element of inclusion that’s important - making sure that the public are informed and part of the statistical conversation.

In my view, the best way to do that is to make sure the data is 1) available and 2) understandable.

Like to know more? Arlen offers half day workshops on how to find and interpret public data. For more information contact: arlen@arlenpettitt.co.uk. You can sign up to his North East policy newsletter at worroom.substack.com

The non-executive director’s checklist

Embarking on a career as a non-executive director (NED) is not for the faint hearted but training and preparation for the role makes it a highly rewarding experience.

As Farzana Baduel points out in her excellent blog post How to land a non-executive director role and what to do when you get there: “Each board position on my CV reflects countless rejections.”

Outside of her points about needing a relentless focus and the value of networks, the key to success is training and development so you are primed and ready to discharge your duties, both legally and as an important independent company asset.

According to the Institute of Directors, the difference between a good director and a great director is the company you keep.

I’m an ambassador for the membership body, which sets the standards for professionalism and good governance. Having recently completed the course, I can vouch for its Certificate in Company Direction, which is the first step on the path to becoming a Chartered Director.

This rigorous training into high performance leadership delivers insights into:

• The role, responsibilities and legal duties of a business director

• The characteristics of an effective board

• Financial terms and concepts

• Issues and processes involved in formulating strategic business plans (and you can see some of the teaching put into practice here)

• How leaders create influence and impact within and beyond their organisation

Equally, I’ve completed non-executive director training with the Non-Executive Directors’ Association (NEDA), which sets out the expectations of NEDs as follows:

“NEDs have a role in strategic decision-making, monitoring the performance of management and the financial reporting process, the review of risk and controls, and (through committee work) the remuneration of top executives and the appointment of new directors.”

In The Independent Director: The Non-Executive Director’s Guide To Effective Board Presence, Gerry Brown goes further.

Brown says: “An independent director is both a coach and a referee. He or she acts as a guide, mentor, and wise counsellor to the firm’s executives.

“Good independent directors bring with them a wealth of knowledge from their own executive careers. They bring examples of best practice they have seen elsewhere; they recommend trustworthy consultants and advisors; they bring experience of working in different sectors and global markets, which the existing team may not have. They help guide and shape strategic thinking, perceptions, and understanding of risk.

“The one thing they do not do is get involved in day-to-day management; that is the province of the executive, and the boundary between their separate roles must always be respected.”

So what should every NED consider when approaching a new role? Here’s a five point checklist:

1. Be curious. Do your research about the business. Bearing in mind Brown’s advice above, be sure you have the relevant experience needed by the company. Specific skillsets will often be part of the job role advertised so make sure you can provide examples of what’s being asked for.

2. Be informed. A whole host of data can be found online so there’s no excuse for discovering too late about any financial or regulatory impropriety. Executive and non-executive directors have the same duties and responsibilities under UK law and may be equally liable if duties aren’t discharged appropriately.

3. Be honest. Check the commitment and that you can deliver. There will always be a basic time commitment, but good NEDs make themselves known within the organisation to stay abreast of developments and can also be drawn in when issues management is required. It’ll always be more than you initially think.

4. Be involved. Understand the governance as much as possible, as early as possible. Talk to other NEDs and members of the executive team as a priority. If you can, evaluate the effectiveness of the chair as this person’s management style will impact how effective the board is. Overpowering chairs can stifle debate and drive personal agendas, weak ones can create a different type of dysfunction.

5. Be protected. Ensure when taking a new position you have a formal contract which outlines your role in detail. Also make sure the company has a Directors and Officers (D&O) policy in place so there is some legal protection in the event of an action resulting from a wrongful act.