www.pwc.ie/pbs
Private business matters
A focus on family businesses
Highlights:
Page 2:Professionalising
the business
Page 10:A glistening success
at Weir and Sons Ltd
Page 3:Reaping rewards
with Keelings Group
Page 11: Enterprise Ireland finds
inspiration in Germany
Page 5:Eurostyle tees up
for future success
Page 12:Extending horizons
down south
Page 6:Fund Recs creates
business opportunity
Page 13:Business on
the pitch
Page 8:More than just a business
at Kelly’s Hotel
Page 14:Building high
performance teams
2
Pictured are the
PwC Family Business
Team receiving
their Acquisition
International Private
Company Services
Team of the Year
Award (l-r) Colm
O’Callaghan, Niamh
O’Connor, Paul
Hennessy, Siobhan
Baldwin, Niall Cogan
and John Dunne.
Interview
with Paul
Hennessy,
Partner,
PwC
Family
Business
Leader
This helps them innovate better, diversify more
effectively, export more and grow faster,” he
noted.
Family firms keen to
professionalise
business
The desire to professionalise was one of the key finding in the recent
PwC report on family businesses, with some 28% of respondents
stating that this was a key challenge for them over the next five
years. The survey also indicated that businesses were increasingly
‘hard headed’ in their attitudes to the management of their
businesses.
Commenting on these results, Paul Hennessy,
PwC Irish Family Business Leader, attributed
these twin findings to the effects of a prolonged
recession, a period that had forced firms to
re-evaluate their business models, take tough
decisions and to carefully manage limited
resources, including cash. “Professionalism in
this context means a focus on three key areas –
systems and processes, having the right skills
and proper family governance,” he advises.
Elaborating, he said firms needed to determine
whether the systems and processes they had
were best practice or whether they could be
improved. Skills related both to the staff
working in the firm and to whether they had
access to external consultants and advisors for
regular input into key strategic areas. At the
same time, family governance issues required
strong communication between all relevant
stakeholders as well as having formal
agreements in place.
Succession remains a challenge with only one
in ten having a succession plan that is robust
and fully documented. “In many cases, the
succession plan, if it exists at all, appears to be
in the head of the patriarch of the business
which is clearly not advisable,” Paul Hennessy
observes. “A robust succession plan needs to be
formalised, following dialogue with all of the
key stakeholders including family members
who work in the business, those who have
shareholdings but who do not work in the
business and the management of the firm.”
More encouragingly, the survey revealed that
Irish family businesses are now significantly
more likely to be planning to bring in
professional management than they were in
2012, when the last survey was carried out.
“Professionalising the business is about giving
structure and discipline to the vision and
energy so often exhibited by the
entrepreneurial family firm.
Nearly two-thirds (60%) of Irish family
businesses reported growth in the last year. An
overwhelming majority (86%) expect growth
in the next five years of which 10% are seeking
aggressive growth. A sign that Irish family
businesses are keen to diversify, nearly a third
(30%) plan to internationalise their businesses
in the next five years. The most popular market,
by far is the UK (43%). Emerging markets such
as China (10%), Africa (10%) and the MiddleEast (9%) also feature, but to a lesser extent.
Less than one in ten (7%) of Irish family
businesses report plans to target the US.
Family businesses have become much more
hard-headed since the 2012 survey. The most
important priorities they cite in the next five
years are to remain in business and to improve
profitability. Next come the factors that will
make this happen such as high quality skills,
running the business professionally and being
more innovative, with the ‘heart’ issues of
family and community coming much lower.
Their sense of supporting employment
(2014:69%; 2012:90%) has fallen dramatically
as has that of supporting community initiatives
(2014:43%; 2012: 74%).
Irish family businesses see themselves as less
entrepreneurial (43%) than their global
counterparts (59%) when compared to other
sectors while access to skills, finance,
increasing price competition and innovation
are all key challenges. “Family businesses don’t
see themselves as being short on ability so
much as short on capacity,” Paul Hennessy
concludes.
If you do one thing...
If you have not done so already, start the
process of dialogue to enable you to take
tough decisions where necessary. Engage
with all of the stakeholders and put formal
plans in place for the future.
3
Caroline Keeling
CEO, Keelings Group
interview
A
growing
heritage
that
reaps
rewards
With an annual turnover of over
€300 million, Keelings is one of
Ireland’s largest family owned
businesses. It’s a business with a
strong heritage of supplying fruit
to Irish consumers and in recent
years has widened its horizons
into other markets.
The family’s expertise in growing dates back to
1926 when it established its farm in north
county Dublin. In the 1930s, the family began
growing fruits and salads and supplying them
to the local Dublin markets. Today, the firm
employs around 2,000 staff and supplies
home-grown and internationally sourced fruit
and vegetables from 42 countries. It accounts
for around 60 per cent of the strawberries sold
in Ireland and its growing Global Trading
business means that it now sells around 270
tonnes of apples to India.
Well-known in the food trade as a supplier of
fruit to the retail market, the company
established its consumer brand name in 2010.
The consumer brand underlined the changes in
the business and the desire to differentiate itself
on the shelves as a quality Irish brand. The
heritage of growing is a key part of this and an
area of increased emphasis for the business. In
1998, Keelings grew less than €1m of its own
fruit, mainly berries. Today, that crop has
grown to €26m.
Chief Executive Officer, Caroline Keeling,
represents the third generation of the family
with her brothers David and William also
working alongside her in the business. Their
father, Joe Keeling, is still very active in the
business in the role of Chairman. A financial
director and two non-executive directors
complete the board.
software and services that provides industryfocused solutions in procurement, stock
management, warehouse and production
planning as well as sales and quality assurance.
The business grew on the back of Keelings
writing its own software which it then began to
licence to companies overseas in countries such
as Holland and China.
“It is a relatively low margin business with
powerful retail customers, and the key to
success is high volume and a very efficient
operating model,” Caroline Keeling explains.
“Building our own brand has also been part of
our strategy.”
Caroline feels that being part of a family
business has been a positive experience and the
advantages – which include fast decisionmaking – outweigh any disadvantages. Having
a clear strategic focus is vital for any business,
she adds. “If you don’t have a proper clear
vision for your business, don’t run it. Get
someone else to run it or do something else,”
she says.
As well as establishing the Keelings brand, the
firm has also expanded by capitalising on its
expertise in warehouse management. Its
Logistics Solutions business provides
management services to third parties, handling
over a million cases of product a week for third
parties.
An IT and consultancy subsidiary, Keelings
Solutions, meanwhile, supplies a suite of
If you do one thing...
Don’t take the younger generation straight
into the core business from college. If
possible, have them work first in, ideally, a
customer’s business and then get them to
work in a subsidiary with a strong focus on
achieving specific results.
4
Adrian Walsh
Managing Director, CheckVentory
interview
Keeping
stock pays
dividends
Early career experiences often provide the seedbed
of inspiration for future enterprise. In the case
of Adrian Walsh, a combination of careers in the
information technology and automative industries
combined to provide the idea for CheckVentory, a
new firm that recently won the 2015 PwC Docklands
Innovation Award.
While working as MD for one of Ireland’s
largest car marques, Adrian was familiar with
the problem of keeping on top of the inventory
of automobiles from the network of agents and
motor distributors. In common with other
distributors of high value capital products,
automotive firms have to participate in the
partial or full financing of their products. This
financing is most at risk during the stock and
sales process when the funded inventory is
located across a wide dealer network.
Knowing whether a car was sold or remained
for sale on the forecourt of a motor dealer is
hugely important but up until now, tracking
this status has been a tedious and timeconsuming process.
Described as a ‘field based asset verification
platform for funded inventory in the
automotive industry’, CheckVentory’s
software-based solution enables risk managers
and credit controllers to quickly, accurately and
cost effectively reconcile their entire stock
holding, irrespective of where the vehicles are
located.
“Traditionally, teams of auditors needed to
undertake regular stock-takes and reconcile all
assets back to the balance sheet,” explains
Adrian. “Our solution, however, uses highly
innovative mobile technology to enable audits
to be assigned, managed and reconciled on one
simple platform, quickly, easily and accurately.
It enables its users to utilise existing resources
in each of the locations, vastly reducing the cost
and time of conducting audits.”
Pictured (centre) is Adrian Walsh, CheckVentory, winner of the 2015 PwC Docklands
Innovation Awards, with Simon Harris TD, Minister of State with responsibility for
International Financial Services, the Office of Public Works and Public Procurement
and Rónán Murphy. CheckVentory is a field based asset verification platform
servicing the automotive industry,
Adrian happily admits that ‘he couldn’t code for
toffee’ but came up with the vision and grasped
the key requirements of the CheckVentory
solution which he brought to a technical team
that he worked with. He is supported in the
venture by David Kiely, a Chartered Accountant
who has a banking, financial risk management
and treasury background.
Currently installed and running with several
multinational clients, CheckVentory is being
used to manage over €50 million worth of
assets. In July 2014 the company won
Competitive Start Fund (CSF) funding of
€50,000 and in November 2014 it was selected
as a finalist in the EIG Silicon Stroll, which
identified 50 of Europe’s most investable
start-ups.
CheckVentory was one of three companies,
each seeking expansion funding, who battled it
out at the PwC 2015 Docklands Innovation
Enterprise Awards to secure the title of ‘best
investment proposal 2015’ and a prize of
€10,000. The finalists, all of whom are recent
graduates of the DIT Hothouse New Frontiers
Programme, pitched their investment
proposals and were questioned by an
experienced panel of judges on their business
plans and CheckVentory came out on top.
Adrian is using his contacts in the automobile
industry to gain traction for CheckVentory and
has advanced plans to enter the UK market.
“Ireland is a great place to set up a business
because access is so easy. There’s been huge
peer support and a lot of doors have been
opened for us. It is a small market though and
we need to look beyond it to gain scale.”
Founded in 2013 and headquartered in Dublin,
CheckVentory is a recent graduate of the Dublin
Institute of Technology DIT Hothouse New
Frontiers Programme.
If you do one thing...
Understand what is your ‘secret sauce’.
Then don’t be afraid to share your ideas with
others at an early stage as you need to get
validation. Secrecy can hold you back and
cause delays.
5
Alan Dwyer
Managing Director,
Eurostyle Group
interview
Eurostyle
tees up
for future
success
Having been born into a Cork
clothing and textile family
dynasty that can trace its
business roots back to the 1820s,
Alan Dwyer is continuing a long
tradition but has carved out a
very modern approach to doing
business in his chosen field.
Eurostyle is a sportswear and promotional gifts
company, with a focus on golf clothing.
Originally a manufacturer of shirts, established
by Alan’s father George in 1972, the company
now designs a range of products manufactured in Asia - for a growing range of
golf shops and corporate clients. It also has
licenses for leading brands, including the
international licence for Calvin Klein Golf. The
firm now also runs a retail outlet in Puerto
Banus, which provides a showcase for its
portfolio of products, and operates a separate
promotional gifts company.
Eurostyle has some leading brands in its
portfolio, including Cutter & Buck. It’s a highly
competitive market, however. There has been a
tenfold explosion of golfing brands since the
late 1980s, with some 700 players now in the
field, Alan points out. Golf is also being
challenged as a past-time. “A round of golf is a
serious time commitment and there are
multiple other sports activities competing for
attention,” he notes. Partly as a response to this,
the company has diversified its portfolio to
include yoga-related and other leisurewear
ranges, targeting female customers in
particular.
With a business model that is based on paying
its Asian suppliers before shipment of orders,
holding inventory, in some cases, and providing
credit to its retail and corporate customers,
cashflow management has been a major
challenge for Eurostyle. Prudent management
and keen attention to detail for its customers
has meant that the company has survived the
lean years of the recession and is poised for
expansion once more. At its height, the
company employed 90 when it was involved in
direct manufacturing, but moved to the
outsourced model in 1996. It currently employs
55 people. Alan sees major potential in its
growing online business in particular, but says
that the business will expand cautiously and
from within its own resources rather than from
borrowing.
Eurostyle is a family business with Alan as
majority shareholder and MD, and brother
Peter, Eurostyle’s Marketing Director, holding a
22.5% stake. “There are no rows as we have
clearly defined roles and there is one
acknowledged leader. We also have a very
strong board structure with monthly meetings
and we have Andy Rogers, former head of Bank
of Ireland UK, as our Chairman,” Alan explains.
Establishing a presence in Puerto Banus with
the new retail outlet last year was an opportune
move. “Spain is in recession with high
unemployment so property prices and labour
costs are low. It’s a great way to meet many key
buyers from throughout Europe who are
playing golf and to show them what we can do,”
he notes.
If you do one thing...
You make your own luck so persevere
through the hard times and your patience
and dedication will often pay off.
6
Alan Meaney
Co-founder and CEO,
Fund Recs
Problemsolving
software
creates
business
opportunity
Being able to look at challenges
from a customer perspective can
give you a great head-start in
business as can keeping an open
mind on a new business.
Entrepreneur Alan Meaney’s
background in funds accounting
– having worked in this role for
HSBC and for SEI Investments –
means he knows the difficulties
clients encounter.
In fact, solving a reconciliation problem for a
major fund administrator, following a referral
from a friend, provided him with the traction to
get his software business, Fund Recs, off the
ground. His initial business ideas were recast
around the opportunity, a key ‘pivot’ that solved
a lot of issues that would otherwise have proved
difficult. Now, the fledgling firm sees huge
opportunities to scale its business
internationally.
“It was an opportunity for us that a big
company with massive resources had issues it
struggled to resolve. As a start-up you are
always solving problems so it came naturally to
us and we could see the potential to take this
further,” notes Alan Meaney.
Velocity, the company’s recently launched
platform for fund administrators, includes
Capita Asset Services and Mitsubishi UFJ Fund
Services as clients.
With co-founder Padraig O’ Scanaill, who has a
software background, and two other staff,
Meaney has developed a cloud-based
automated solution to reconcile financial data,
initially targeting the funds industry – but with
the potential to work in many other spheres as
well.
The firm has received financial backing from
both Enterprise Ireland and Telefonica through
its Wayra accelerator. Alan has enjoyed the
benefit of expert advice as a participant in
Enterprise Ireland’s New Frontiers
Development programme.
“One of the things that the programme
emphasises is lean development, something
that we have always practiced. It’s vital to get
paying clients early with a viable proposition
rather than spending too long building a
feature-rich product. Small businesses typically
have very limited funds so it’s vital to get
something into the marketplace early and - if
necessary - to tweak the proposition as you go.”
Credibility is a hugely important issue in the
sector the firm has targeted, something the
backing of Enterprise Ireland and Telefonica
has really helped with, Alan Meaney notes.
Fund Recs has decided on a ‘software as a
service’ rather than a licensing fee business
model. This enables it to both leverage the
power of the cloud and to tailor a solution with
a small number of deployments, so users can
test its efficacy before going for a full-roll out.
“The cloud is clearly the future and it provides a
huge advantage for a business like ours,
allowing rapid development and scalability that
otherwise would not be possible if we had to
have people implementing the solution on the
ground,” notes Alan Meaney.
At the moment, the partners are busily engaged
in client demonstrations in Dublin and London,
both of which are huge global centres for fund
administration. Alan Meaney says that while
the software has potential applications in a
wide variety of industries, there is huge scope
in the short to medium term within the funds
industry alone.
If you do one thing...
Choose your founding partners carefully.
Find someone with complementary skills
and that you get on well with. When times
are tough, you need to have someone that
you can go to war with.
Ken Owens
PwC Asset Management Partner
interview
Doors wideopen for Irish
entrepreneurs to
help growing
funds industry
Ireland’s fund management industry is expected
to have over 3.5 trillion euros of assets under
administration by 2020 and over 50 significant
fund administrators operating here - mainly
based at the IFSC. Employment estimates for the
sector range up to 18,000, equivalent to around
half of the workforce at the IFSC.
These impressive statistics highlight the scale and importance of this
industry to Ireland and also represent a significant opportunity for
Ireland’s SME community to service this burgeoning sector.
“Ireland is the second largest country in Europe for international funds
with the industry servicing a wide range of clients in Europe, the United
States and Asia,” explains PwC’s Ken Owens. “We have scale in this sector
with most of the biggest companies globally, either having a presence in
Ireland already or considering establishing operations here.”
This is a sector that has proved its worth over a period of 25 years, turbo
boosted by the success of the IFSC. Ireland has established itself as a
leading global centre in the fund administration industry with an excellent
reputation for the availability of people with the appropriate skills as well
as a secure regulatory environment and an attractive tax regime.
Moreover, Ireland is ideally positioned to gain further investment. Indeed,
PwC’s report Asset Management 2020: A Brave New World, predicts that
the global industry is set to grow from 64 trillion dollars under
administration to over 100 trillion dollars by 2020. Much of this growth is
set to come from Asia, where the burgeoning middle classes are creating
huge demand for new savings and investment products.
According to Ken Owens, two other mega trends identified in the PwC
report, namely pressure on costs and fees and the move to greater
automation and deployment of technology, also create opportunities for
entrepreneurship and new innovative solutions. “There are opportunities
for new disruptive players, especially in the area of risk and compliance,
an area where we have good expertise in Ireland,” he notes. “Companies
that can develop solutions that help fund managers run their operations
more cost effectively are also very well placed,” he adds.
Ireland provides an ideal test-bed for companies that can develop
software solutions with some 830 asset managers in the country and over
50 significant companies in this sector. This is relatively unusual in the
software industry where companies typically have to look outside Ireland
to develop their businesses.
Enterprise Ireland is actively supporting companies exploring
opportunities in this sector, through its various support programmes.
“Those who have worked in the industry are at a particular advantage if
they have the right ideas and skillsets to take advantage. The doors are
wide-open for those with this profile,” Owens says.
If you do one thing...
Change your mind-set and realise that the
market is global. Think more ambitiously
about how you can add value for customers
and where these customers might be.
8
Bill and Laura Kelly
Kelly’s Hotel, Rosslare
interview
More than just a
business
More than just a hotel, the very name Kelly’s conjures up happy
memories of seaside holidays for generations of Irish families.
Founded originally as a tearoom in 1895, the Rosslare beachside
establishment continues to go from strength to strength with a fifth
generation now involved in its management. Fittingly, the latest
addition to the family business is a café, opened last year and located
in a new retail complex in the town.
What’s the secret of its success?
A relentless desire to look after its customers,
according to Bill Kelly, the current patriarch of
the family business.
Bill is quick to praise his 200 plus staff who
between them have 1,850 years of service. A
very high level of long-term repeat business
bears testimony to the attention to detail staff
bring in making everyone who stays at the hotel
have the best possible experience. Occupancy
rates of 90 per cent in the 10 months the
business opened in 2014 point the way to a
business that has proved resilient during the
recession and forward bookings for this year
indicate a healthy upswing is in place.
“When the recession hit, the first thing we
noticed was that the advance bookings fell off.
People just were not confident about their
plans. Loyal guests did return but the stays
were shorter and the average spend was down.
Happily, that’s turned around again now,” he
says.
Bill praises the work of Tourism Ireland for an
increase in overseas visitor numbers – up a
healthy 9% over the last 12 months.
International tourism accounts for around 18%
of Kelly’s revenues and is increasing.
Running a family business is different to a
non-family business, agrees Bill’s daughter
Laura who plays a senior operational role in the
management of the hotel. “It’s more than just a
job. You invest yourself heavily and you look at
the longer-term consequences of what you do. If
there’s a problem too you will fix it, rather than
getting three quotes. You’re driven by seeing
the hotel be the best that it can be” she says.
This longer-term thinking is reflected in the
refurbishment of the hotel and building of a
new banqueting room, with an eye on the
future business. Bill and Laura agree that this
will position Kelly’s well for family functions in
the years ahead. The development of the new
facility was planned and executed during the
downturn, something that a non-family
business might have held off on.
As a close-knit family, communications is good
and constant during working hours, but Laura
notes that there’s a Golden Rule imposed by her
Dad about no shop-talk during free time.
“When we’re at home, we’re at home is the
rule!”
If you do one thing...
Be passionate in what you do and never, ever
forget that the customer is the business so
make sure that they have a great experience.
Dr. Eric Clinton
Director, Centre for Family Business
Dublin City University (DCU).
9
interview
Family firm issues follow
traditional paths
Family Businesses often feel isolated
and think that the problems that
they experience are unique to
themselves but when exposed to
other family firms they realise how
common patterns repeat
themselves. That’s among the
conclusions of Dr Eric Clinton, who
runs the Centre for Family Business
Longevity appears to be the order of the day for
those at the head of family businesses, with the
average CEO tenure lasting 23 years, significantly
longer than those of their non-family counterparts.
When looking at the leaders of family businesses, Dr
Clinton has identified a number of distinct
personality types. The first is The Monarch, the
long-lasting boss who leaves the business only
through death or revolt. Then there is The General,
who again reluctantly leaves the business but plots
their return to save the business from a real or
imaginary crisis. The Ambassador leaves gracefully,
perhaps for a seat on the board, while The Governor
is a boss who sets their departure date and sticks to
it. Finally, you have The Inventor, who is more than happy to relinquish
their role as leader to go off and pursue new adventures.
In light of the recent PwC survey on Irish family business survey results,
which identified succession planning as a largely overlooked area, Dr
Clinton expressed concern over surprise. “It is inevitable that change
will take place in business. Customer demands will change, the nature
of the business will change, the size of the family will increase and not
all of the children will want to go into the business so you really need to
consider these and other issues”, he stated.
Failure to address long-term planning, including succession, can have
catastrophic effects for a business. Having too much power and
knowledge invested in one individual is particularly unwise, given the
unpredictability of life. For example, a sudden death can be enough to
throw a family business into crisis...
Proper family structures, including written agreements and regular
dialogue, are much more preferable to involving lawyers in an
acrimonious dispute. “Within families there is often an absence of open
dialogue about differences, but seething resentments under the surface,”
PwC supports DCU
Centre for Family
Business
Pictured at the PwC/DCU Family
Business Breakfast briefing are (l-r)
Dr Eric Clinton, DCU Centre for Family
Business, Eamonn Quinn, Chairman,
DCU Centre for Family Business
Steering Committee and Chairman
Kelsius Ltd; Paul Hennessy, PwC
Family Business Leader and Conor
Whelan, CEO, Eason’s.
Dr Clinton observes. Mediation can help iron out difficulties, however,
this process requires a good degree of honesty and strong leadership.
It is important to understand the role of the various stakeholders in the
business. This can include family members who are actively involved in
the business and who have equity stakes; family who are not involved in
the day-to-day running of the business but who have equity; and the
non-family members of company management who, in most cases, will
not have equity in the family-business.
The DCU Centre for Family Business was established in October 2013. The
centre provides a range of services for family businesses including
workshops, training sessions and case studies of best family business
practice. More information is available on www.dcu.ie/centre-for-familybusiness.
If you do one thing...
Establish a fair and transparent way of communicating and
facilitating dialogue with all of the stakeholders in the family
business.
Earlier this year, AIB, PwC and William Fry joined forces
to support DCU’s recently established Centre for Family
Business (CFB) in assisting the unique contribution of
Irish family firms to the Irish economy and society. This
partnership, which will run for three years, will allow the
Centre to continue its vital work in supporting the
longevity of Irish family businesses.
10
David Andrews
CEO, Weir and Sons Ltd
and trade has mushroomed. Now we have four
Mandarin speakers working full-time here.”
It is understandable that the reputation of Weir
and Sons has spread globally as it carries more
gold, diamonds and exclusive brands than any
other jeweller in Ireland and is, in fact, the
second biggest jewellery shop by physical size
in the whole of Britain and Ireland. A
reputation for quality and excellent customer
service has built a loyal client base over the
years.
Craftsmanship is a major part of this. Behind
the glistening retail premises on Grafton St is a
hive of industry with watchmakers and
specialist repair staff and polishers as well as
import and stocking specialists working away
throughout all floors of the building. Weir and
Sons also has a second, smaller premises at the
Dundrum Town Centre.
A glistening success on
Grafton St since 1869
An iconic institution in Dublin for well over 140 years, jeweller Weir
and Sons is a rare example of a family business that has endured
through huge periods of transformation in Irish society.
With one of the largest physical footprints in
the key shopping district of Grafton St –
premises occupying an impressive 23,000 sq ft
– Weir and Sons remains very much a family
business, with just one single shareholder,
current CEO David Andrews.
David, whose mother’s maiden name was Weir,
says that one of the key decisions made by the
family over the years– purchasing its premises
in 1963 – has had a hugely positive effect on the
business. The absence of a large rent overhead,
in one of the most expensive commercial
addresses in Dublin, has helped the business
through downturns, especially the most recent
recession which ravaged the company’s
turnover.
Thankfully, business is now on the up again, he
says, and one of the key new customer
segments is Chinese consumers. In fact, these
customers now account for around one third of
business. “The clients are from the Chinese
mainland, not from Hong Kong, and are
Mandarin speakers,” David explains. “We took
on a Mandarin speaker to service these clients
A traditional business in nature, it is not
immune to changes in the market. One of the
biggest potential threats lies in the internet,
with an explosion in online retailers in this
sector, many of whom are operating in
countries with lower VAT rates. There is a
significant incidence of fraud, however, in the
online jewellery market. According to David, it
is not uncommon for customers coming to
Weir’s looking for repair of what they believed
to be a high-end watch bought on the web, to be
shocked and disappointed to be informed that
they have bought a fake.
David entered the business in 1967, having
trained as an articled clerk for a couple of years
at Craig Gardner, the accountancy firm that
later became PwC. His son, Chris, now works in
the business, representing the fifth generation
of family to work there since it opened its doors
in 1869.
Ensuring a solid future for the family and the
business is a major concern to David and, to this
end, he has signalled plans to host a major
family conference later this year to discuss
succession issues and future planning. He is
conscious of his responsibilities not only to his
own family but to the long servicing staff at the
firm, with different family generations
represented.
If you do one thing...
Don’t ever sign a personal guarantee for
your business. Treat your suppliers with
huge respect.
11
Deirdre McPartlin
Senior Development Advisor, Enterprise Ireland
interview
Finding
inspiration
in Germany
Enterprise Ireland introduces Irish companies to
Mittelstand best practice
Notwithstanding certain
differences, Irish family firms
could gain valuable insights from
some of their counterparts in
Germany. That’s among the
conclusions that can be drawn
from a recently commenced pilot
conducted by Enterprise Ireland
involving 12 Irish engineering
firms, the majority of which are
family owned.
The programme commenced with Irish
companies visiting peer so called Mittelstand
firms, a term for the medium sized companies
that have proved to be a powerhouse for
Germany’s economy for many decades now.
Eight of the Irish firms are family owned, three
are owner managed, with the remainder
having a large private equity ownership model.
The programme is led by Enterprise Ireland’s
Director of Manufacturing, Tom Kelly, and
Deirdre McPartlin, whose career involved 15
years working in Austria and Germany,
including eight years as Manager of Germany,
Switzerland and Austria for Enterprise Ireland.
“We met the CEOs of German engineering
companies who are considered to be world
leaders in their niche. They were a few stages
ahead in terms of company size but the CEOs
we met had driven and experienced that
growth. For the Irish companies, this meant
they could witness best practice from people
they could relate to, operating in the same
sector,” Deirdre explains.
In general, the German firms were found to
have strong long-term strategic visions. They
also had very robust processes and operating
procedures that meant that the owners and
senior management team could step back from
the operational detail, confident that things
would be done correctly. “The structures
tended to be flat and management were aware
of what was happening on a day-to-day basis
because they themselves had designed the
processes, but they were not involved in regular
fire-fighting activity. That meant that they
could focus on growing the business instead,”
Deirdre notes.
Culture was also found to be extremely
important in these firms. They had a preference
for growing their own talent as they wanted an
appropriate fit rather than having people that
came from a very different multinational
corporate background, for instance. “At the
recruitment stage, it was common, for example,
for these companies to interview potential
employees three times, establishing that they
were right for the organisation,” Deirdre
explained. “There was a strong focus on open
communication between people in all aspects
of the organisation rather than working in silos
and there was also an emphasis on investing in
people throughout every stage of their career.
Succession planning was also seen as hugely
important, not only at the top but within the
middle and supervisory ranks too,” she added.
A desire for financial independence was
another characteristic found with the German
companies that did not wish to be beholden to
banks for borrowing purposes. Family firms
were inclined to reinvest profits in the business
rather than extracting profits and reinvesting
them in other assets. “There was a strong
emphasis on developing high value-added
products and solutions and identifying
profitable markets which enable good margins
rather than simply going for volume growth.
Organic company growth, based on the
reinvestment of those profits was prioritised in
the early stages of establishing leadership
positions as well as remaining close to the
customer in all markets, rather than relying on
third party agents. The Irish companies were
surprised at the level of direct investment in the
employment of local company staff in areas
such as technical support for customers in
international markets.” she noted.
The pilot programme commenced late last year
and the Irish companies involved, all of which
aspire to high growth in the coming years, were
enormously enthusiastic that the visit has
inspired and informed their thinking.
12
Ger O’Mahoney
Partner, PwC Cork
interview
Extending horizons
down south
Slowly but surely, the economic
upturn that has been felt most
strongly in the capital is starting
to spread to other parts of
Ireland. Our second city, Cork, is
now among the beneficiaries of
the upswing, according to PwC’s
Ger O’Mahoney, who notes a
return of confidence lately on
Leeside.
That’s qualified, however, by noting that it’s an
uneven recovery. Traditional businesses that
have not changed their business model, or have
not been able to find new customers, continue
to struggle, he notes. Those who have done well
are those who have been able to look to new
markets and align themselves with growth
opportunities.
“Internationalision has been the key to success
for many. Businesses that were once 75 per cent
domestic focused and 25 per cent export have
flipped that around so that the majority of their
business is now export and these tend to be the
ones that are really growing,” says O’Mahoney.
Family businesses are amongst those. Apart
from hunkering down during the recession
years and drawing on their reserves to keep
their firms alive, O’Mahoney notes that family
firms have been amongst the most dynamic in
terms of exploring ways to make the business
more sustainable in the longer-term.
Reflecting on the results of the recent PwC
Family Business survey, he also sees an
increasing professionalisation of family
businesses and a willingness to bring in
external knowledge and talent where required.
“For example, while it can be a difficult decision
for a close-knit family business to bring in a
talented business expert as a non-executive
director, the experience of those who have has
been one that they have never regretted,” he
says. “Family businesses often feel isolated so
having an appropriately qualified and trusted
board member in your camp can be a very good
way of testing and validating your ideas and
philosophies.”
Family businesses are certainly more complex
concerns. Aside from the day-to-day issues of
running a business, the personal dynamics of
spouse, parent-child and sibling relationships
add to the complexity of the situation.
O’Mahoney says that it is vital for family
businesses to have formal structures in place to
discuss family issues be that in the form of a
family council or a regularly scheduled board
meeting.
Succession is one of the key issues for family
businesses and again this is an issue that the
generation in charge should clearly address
with their professional advisors. When
decisions are made, they should be clearly and
fairly communicated to all relevant
stakeholders.
If you do one thing...
As leaders of family businesses, don’t assume
that your children want to join the business
and, equally, don’t assume that they do not
want to join either. Have a proper
conversation about it.
13
Dessie Farrell
Chief Executive,
Gaelic Players Association (GPA)
Business
on the pitch
www.pwc.ie
As Chief Executive of the Gaelic Players
Association (GPA), Dessie Farrell (DF) is
acutely aware of the special challenges
which inter-county GAA players face as they
try to successfully manage their busy
sporting and working lives.
Membership of the GPA comprises over 2,000
inter-county hurlers and footballers playing at the
highest level. The evolution of the sport has been
such that a talent for the games combined with the
traditional approach of training two nights a week in
high season does not come remotely close to what is
required to survive, let alone succeed. Being an
inter-county player today involves a certain lifestyle
and discipline in the approach to physical and mental
preparation, diet, rest and, crucially, time
management. How does all of this impact on young
men as they set out on their college, work or business
careers and what supports can they rely on?
The GPA has developed a multi-dimensional support
structure for its members to help them meet the
many challenges, but this is very much a work in
progress. In conversation with PwC’s Dermot Reilly
(DR), Dessie recently took time out to discuss how
the GPA supports its members and to set out his plans
to further enhance these vital supports.
DR: Dessie, aside from the core lifestyle commitment,
can you give a flavour of how much time a typical
inter-county player devotes to preparation for, and
participation in his sport.
DF: Well, there is obviously some variation as regards
direct time involvement. The demands of playing,
training and strength and conditioning work would
easily take up more than twenty hours per week. All
of this and the lifestyle commitment means that our
players need to be really well organised if they are to
successfully manage their education and work
careers alongside their sporting life.
DR: What type of supports does the GPA make
available to its members and what is the level of
take-up?
DF: Our players have very busy schedules and our
aim is to provide them with targeted and relevant
supports to assist them develop their sporting and
personal lives. We operate programmes in relation to
career choice and management, education, life skills
and health and well-being. We have a very strong
take-up and it is very gratifying that hurlers and
footballers from all counties participate in these
programmes. The GPA support team would have in
the order of 6,000 to 7,000 engagements with our
members on an annual basis.
DR: There is an impression abroad that some players
opt for college courses and careers which they regard
as being less likely to intrude on their playing
ambitions. Is this an issue and, if so, what is the GPA’s
stance on this?
DF: A number of players have acknowledged that
their career choice or indeed a decision to take a
“career break” have been influenced by a resolve to
give their sporting life top priority.
Supporting
Irish Business
PwC - Official
Partner of the
GAA /GPA
Pictured are Dessie
Farrell, Chief Executive,
GPA and Rónán Murphy.
As Ireland’s largest professional services Firm, we are committed to
delivering a first class assurance, tax and advisory service to businesses
throughout Ireland. We have a team of over 2,500 based in our Dublin,
Cork, Galway, Kilkenny, Limerick, Waterford, Wexford and
Belfast offices.
Proud partners of the GAA and GPA - supporting players,
supporting games
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PricewaterhouseCoopers, One Spencer Dock, North Wall Quay, Dublin 1. 05495
05495_GAA GPA Ad for Sun Apr 12 match programme__Apr15_v1.indd 1
We at the GPA believe that our members should not
compromise on their education and careers and
indeed, some players and former players have
expressed misgivings about the wisdom of choices
they made as they embarked on their sporting
careers. As is the case with other sports, many of our
members have successfully managed to combine
sport with a very busy and demanding career. We
believe that we can facilitate this through the support
systems we make available.
DR: Have many of your members gone into business
for themselves? Would you say that self-employed
inter-county players face particular challenges?
DF: Just over 100 of our members are self-employed.
The challenges they face mirror those of any young
person in similar circumstances but, of course, the
time demands of an inter-county playing career
dictate that they have to be really disciplined when
managing their time. The stresses involved in
managing the various strands associated with the
establishment of a new business, especially for a
young person, can be daunting. Whether it is raising
finance, business registration, recruiting staff or the
core requirement of winning new business, there are
many challenges for the young entrepreneur. In order
to alleviate some of these stresses we at the GPA
provide a range of supports and mentoring facilities
(including through PwC) for our members.
07/04/2015 15:01:16
involvement in an existing family business but many
have no business background. They include former
stars like Joe Sheridan (life assurance) and Ronan
Sweeney (architectural technician).
In our experience, a strong work ethic, an ability to
focus on delivering results, organisational skills and
strong network of GAA contacts provide an
invaluable platform for any young person setting out
in business. Our members and former members have
successfully launched new businesses in such diverse
areas as medicine, business advisory, architectural
services, building and construction, technology and
retail businesses.
DR: Do you envisage the role of the GPA evolving in
the years ahead?
DF: While we have made great progress in developing
our support structures we cannot afford to be
complacent and we believe that the requirements of
our members will likely evolve over time and we must
accommodate this.
In addition to our existing suite of supports, we are
keen to expand our mentoring support programmes.
We believe that the development of mentoring/
internship programmes with the wider business
community will bring enormous benefits not just to
our members but to participating businesses.
We are a relatively young organisation but we hope
and expect that over time future generations of
players will be able to learn from the experiences of
those who previously availed of our support
programmes.
We are really excited about our recently launched
Madden Leadership Programme. This will develop a
group of county players from hurling, camogie, Gaelic
football – men’s and ladies – with the necessary skills,
motivation and experience to become successful
leaders in the community.
DR: Is there a common thread as regards the nature
of the businesses which your self-employed members
undertake?
We believe that this can be a launching pad for a
wider range of similar programmes in the future.
DF: It is probably fair to say that a number would be
involved in businesses which have some link to their
sporting careers. Examples would be Aidan Walsh
(Cork) who has established a thriving hurling
manufacturing business. Former Fermanagh
footballer, James Sherry, has his own physiotherapy
business and Niall McNamee (Offaly) has set up a
sports products business called ‘Twelves’ while also
pursuing an active career in public speaking and
business coaching.
DF: Of course, I’m supposed to be entirely neutral on
these matters but I’ll go for two dark horses. What
about Kilkenny for the football and Kildare for the
hurling?
Apart from this slightly sporting bias GPA members
are involved in businesses across the full spectrum.
Some of them may have grown up with an
DR: Final question Dessie; who do you predict as
winners of this year’s Hurling and Football
All-Irelands?
14
Nigel Carolan
U20 Coach, IRFU
interview
Pictured with Feargal O’Rourke, PwC Managing Partner
are Irish U20 players (l-r) Gary Ringrose, Nick McCarthy
(U20 Captain) and Billy Dardis.
Building high performance
teams
www.pwc.ie
Supporting
Irish Rugby
PwC are proud
supporters of
the Ireland
Under 20 Team.
Pictured (l-r) with Ireland Under 20 Head Coach Nigel Carolan (second from
right) are PwC U20 Players: Lorcan Dow, Nick McCarthy and Rory Moloney.
We work with clients to bring value to their businesses,
capitalise on global trends, advise on digital strategies,
develop tomorrow’s workforce and help serve a changing
customer base.
© 2015 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” and “PwC” refer
to the Irish firm, PricewaterhouseCoopers, One Spencer Dock, North Wall Quay, Dublin 1. 05421
05421_IRFU Rugby International Programme ad_v3_Feb15.indd 1
03/02/2015 16:04:04
It’s been a fantastic year for Irish
rugby with impressive wins for
our senior side in the Autumn
International series, followed by
a thrilling and ultimately
victorious 6 Nations
Championships, setting us up
nicely for the World Cup later
this year. Ensuring continuity in
this stream of success is part of
the mission of Ireland’s PwC
sponsored under-20s side,
coached by former Connacht
player Nigel Carolan.
While the Under-20s did not enjoy the same
level of success as their senior counterparts this
year, Carolan sees lots of cause for optimism in
the performances and the positive experiences
gained by the team taking shape. Most of the
squad play their rugby at club level, in the All
Island League, rather than provincial level and
the level of opposition they encountered was
challenging. “It was a major stretch for many of
the players out of their comfort zones and our
Six Nations campaign was like a series of Cup
Finals for them,” he explains.
Performing at this higher level introduced the
squad to a level of professional preparation and
rigorous analysis that will stand to them as
their playing careers develop, which should
ultimately be of benefit to the senior side. “From
a development perspective, it is not simply a
matter of winning games. Winning is a
by-product of a culture of people taking more
ownership of training, preparation and analysis
of performance and the players certainly
demonstrated that.”
A feature of the squad is the high level of
interaction between players and coaching staff.
“We encourage a strong degree of independent
thinking and a climate where people are not
afraid to offer their opinions. As management,
we also tried to let go and to devolve as much
responsibility as possible.”
In developing high performance sports teams
there is no substitute for hard work, Nigel notes,
but advises that this must be tempered by a
realisation that people are human and have
other issues and demands in their lives that
need to be considered and supported. This
could include players’ personal relationships,
college, money worries or the effect of injuries,
for example. A duty of care is important.
Many of the principles from the world of sport
find resonance in the world of business, he
notes. Honesty, empathy and respect lie at the
heart of building successful relationships across
all high performing teams, he concludes.
15
Paul Hennessy, PwC
Family Business Leader
interview
The
thorny
issues
cannot be
‘ducked’
Review current governance
Our survey indicates family and business
governance has been steadily improving. But
governance should be regularly reviewed to
ensure it’s fit for purpose, and firms should
assess:
This year’s survey shows an increasing number
of family businesses have mechanisms in place
to deal with conflict, with over three-quarters
(78%) of Irish family businesses having at least
one procedure. Great, but are they fit for
purpose and do they cover areas such as:
•Channels of communication
•Forums for airing issues and third party
mediation
•Decision making structures
•Passive member engagement
•How the family members interact with each
other and the business
•Reinvestment versus extraction
Discuss and agree future plans and
intentions
•Over-riding constitution and commitments
to fairness
Plan for succession
Family businesses generally fail
for family reasons, according to
PwC Ireland’s family business
leader, Paul Hennessy. Why is
that and what can be done to
avoid it?
Current research indicates that 70% of
intergenerational wealth transitions fail, with
many solely due to a lack of openness and
transparency. So having open discussions and
agreeing broad parameters for the future of the
family wealth, the business and the family’s
role is key.
Ireland has the fastest GDP growth in the
Eurozone, unemployment is falling and
consumer confidence is returning. This
positivity is reflected in PwC’s latest Family
Business Survey, which found that an
overwhelming majority (86%) of Irish family
business leaders expect growth in the next five
years of which 10% are seeking aggressive
growth.
Professionalising the family is about putting
processes in place to govern how the family
interacts with the business that protect the
family’s interest and safeguard the firm’s
survival. It’s therefore important that the
following are clearly defined:
•Family roles – are the right people in the
right roles, with the right experience and
what are their aspirations?
•Future leadership
However, global megatrends like the digital
revolution are making the business landscape
more volatile and competitive than ever. Family
businesses are well aware of this, and are
sharpening their businesses in response.
They’re installing new IT systems, streamlining
processes, beefing up boards and hiring the
skills they need to professionalise their
operations.
•Decision making process – does this cover
both business and family and is it
transparent and fair?
•How the older generation retain a positive
influence
But as this Family Business Survey shows,
professionalising the business is not enough;
the crucial issue is to professionalise the family
and the firm – the ‘heart’ and the ‘head’. This is
about family governance, as well as corporate
governance. Family firms need to address every
aspect of the way the family interacts with the
business and holds its managers to account.
And the family members need to learn to be
good owners as well as – or even instead of –
good managers.
This means putting a robust framework in place
to govern the family’s interactions with the
business. This covers everything from
decision-making, communications and
dividend policy to succession planning.
These are often thorny issues that can’t be
ducked. So what is the approach? From
working with a wide range of family
businesses, below are some thoughts on a
roadmap to help the family be the strength
behind the business.
Define family roles and accountability
•Accountability - who is accountable to whom
and for what?
Create a conflict management policy
The strengths and weakness of a family
business are right there in the name: the family.
Working with relations can generate much
higher levels of trust and commitment, but can
also lead to festering resentments and open
conflict as the individuals concerned struggle to
separate “head” and “heart”.
The survey revealed that nearly half (45%) of
Irish family businesses have a succession plan
for some if not all senior roles, but when
questioned further, only one in ten have a
robust and documented process. A plan that’s
not written down is just an idea, and this is an
issue family firms must address with the same
commitment and energy they devote to
professionalising other aspects of the business.
Three key issues came to light in our survey –
generation gap, credibility gap and
communications gap. Therefore, a successful
succession plan should openly discuss and set
out guidance around:
•Involvement of the next generation
•Development and mentoring of next
generation
Based on our experience of working with many
family businesses over a long number of years it
is only by professionalising the family and the
business that real sustainability can be
achieved. The operating model has got to be
about the alignment between family
governance and corporate governance whereby
successful family businesses are also successful
business families.
Africa calling
Pictured beating the
drum for Africa at the
PwC Africa Forum are
(l-r) Paul Monekesso
Cleal, Africa Leader, PwC
UK, HE Ambassador of
South Africa to Ireland,
Ahlangene Sigcau and
Ronan MacNioclais, Africa
Practice, PwC Ireland.
A recent PwC survey amongst
South African CEOs reveals that
nearly two-thirds (61%) of South
African CEOs, compared to 51%
globally, plan to enter into a new
strategic alliance or joint
venture.
Says Ronan MacNioclais, Leader, PwC Africa
Business Group in Ireland: “With confidence in
growth, Africa is increasingly attractive for
investors and Irish businesses have a great
opportunity. A burgeoning middle class with
consumerist aspirations, a desperate need for
investment to narrow the infrastructure gap
with other parts of the world and new oil and
gas finds are all factors enticing new
investment.
“However, the unfamiliarity of this new market
for Irish investors makes it essential to have a
local partner if a business is going to succeed.
And it is good to see that this survey amongst
South African CEOs highlights that these
business leaders are open to partnerships such
as strategic alliances and joint ventures. A local
partner can bring the knowledge, connections,
networks and insight – all key to business
success. Finding the right partner when doing
business in Africa is crucial and the choice must
be carefully made.”
Over a third (39%) of South African CEOs are
‘very confident’ of growth in their own
company over the next 12 months (up from
25% last year). However, they are less
optimistic about global economic prospects for
2015 with less than a third (29%) anticipating
that global economic growth will improve
(Global: 37%).
The survey is based on interviews with 41
South African CEOs from a broad spectrum of
listed and privately-owned companies.
Comparisons are made with the findings from
PwC’s global CEO survey of more than 1,300
CEOs around the world.
There are further opportunities for
Ireland as an overwhelming majority
of South African CEOs see mobile
technologies critical for business.
The emergence of digital technology has
completely changed how companies do
business. Mobile technology is seen by 90% of
South African CEOs as the most important
development for their business.
Ronan MacNioclais added: “CEOs in South
Africa know they must be adaptable to
disruptive changes in technology and in their
markets. As a leading technology centre of
excellence, Ireland has a great opportunity to
help African businesses embed new
technologies into their business strategies.
African business leaders realise they need to
put technology at the core of their businesses to
create value for customers. Finding new ways of
thinking and working in this new competitive
landscape is critical to their success and Ireland
is perfectly positioned to help.”
National Export
Hub is launched
Pictured launching the National Export Hub, a new initiative for Irish exporters
are (l-r): Rónán Murphy, Charlie Flanagan, TD, Minister for Foreign Affairs &
Trade; Julie Sinnamon, Chief Executive, Enterprise Ireland and Simon
McKeever, Chief Executive, Irish Exporters Association. The initiative will be
promoted through the National Export Campaign and other partners involved
are ABP, AIB, DHL, Euler Hermes and Bord Bia.
18
John Dunne
Partner, PwC Family
Business Services
Family firms
and the
digital future
Digital technologies are part of our everyday
life, from social media to online retail, and they
are abundant in our workplaces. Family
businesses need to ensure they embrace this
evolving world and the changing habits of
customers. Business strategies need to
accommodate digital technologies so
companies can stay close to their customer’s
needs, expectations and demands.
According to our 2014 Family Business Survey, family firms understand
this need to keep pace with technological advances, with 80%
recognising the growing impact of digital technologies. But only half
(46%) of Irish family firms say they understand the business benefits of
moving to a digital strategy and just over a quarter (28%) recognise they
need to attract the right talent to help them do this.
on the doorstep to tap into. Whether it be to make the most of social
media to engage with customers, improving your website look and feel,
or ensuring your online presence works effectively on smart phones and
tablets.
Based on these findings, I see four key areas where the digital
opportunity throws up particular interest for family businesses.
Digital technology is more than just the online ‘shop-window; it now
plays an important part in the back office, giving businesses choices for
how to run their finance systems, ordering systems or customer
management systems. Technology solutions to all of these can be found
online, taking away the need buy software up front, install it yourself on
site and then pay someone else to maintain it. As such, what was once
only available to big business is now available to smaller businesses –
hopefully levelling the playing field somewhat.
Keeping up with the speed of change
All businesses need to be aware of the rapidly changing markets in which
they operate and to keep abreast of what others are doing. A modern day
market disruptor can move quickly by developing products and services
and stealing customers before you have even heard of them. Larger
corporations can afford to have their own people monitor the
competition or bring in help to assess the market. The key is staying in
touch with trends and picking out those that are relevant to follow. You
don’t need to lead the market to be successful, but you do need to be a
‘fast follower’, spotting the trend and catching on before the growth
opportunity has run its course and the next trend is on its way.
The next generation knows best
One of the key challenges is how best to manage succession from one
generation to the next. Especially when the experience and knowledge of
the family business, built up over many years, resides in the heads of one
or two in a family. One area where the next generation probably do know
best is how to get the most out of digital technology. Those born from the
late 1980’s onwards have always had access to technology and its use is
intuitive. We call them ‘Digital Natives’. Before the end of this decade,
they will be the dominant spending force in the market. The rest of us
may have adapted to the digital work – ‘Converts’ as we call them but we
must work harder to see the opportunities that digital affords. As such,
when it comes to family businesses there is a wealth of experience right
Access to technology
Maximising the advantage of size
Innovation is seen as the biggest challenge and often digital and
innovation challenges go hand in hand. However, this is where a family
run business really can have an edge over large, non-family owned
corporations, which are sometimes referred to as tankers that take an age
to turn. Lack of agility can lead to a nervousness to try new things and see
how they go. Family run businesses are close to what is happening on the
‘shop-floor’ and have an advantage over corporations where decisions are
tabled at board meetings or steering groups. Making this advantage
count depends on the attitude to risk, the ability to act quickly and the
focus on backing the winners. This lends itself well to trying out new
digital ideas in a controlled environment that does not harm the family
business brand, then progressing with the good ideas more widely across
the business.
In summary, the digital revolution is here and the family firms that
embrace this change and the way it can transform the business landscape
will be the winners.
19
Pictured launching PwC’s Data
Analytics report ‘Gut & Gigabytes’event
left to right are David McGee, PwC
Consulting Partner, Emer Coleman,
PwC Digital & Anaytics Practice;
Gurchand Singh, Head of Analytics
Service, An Garda Síochána and Ray
Murphy, Head of Sales Analytics and
Intelligence, Google.
Data-driven organisations
improve decision making
Highly data-driven companies
around the world are three times
more likely to report significant
improvement in making big
decisions, but only one in three
executives say their organisation is
highly data-driven. Only one in three
of Ireland’s Chief Financial Officers
say they are using data analytics to
capitalise on global trends and just
one in five anticipate changes in how
they plan to leverage ‘Big Data’ in the
year ahead. PwC Ireland research
shows that Irish companies lag
behind their global counterparts
when it comes to the use of data and
data analytics and capitalising on
technology and digital investments.
Furthermore, PwC global research highlights
that more big decisions are made
opportunistically than deliberately and big
decisions have a big impact on future
profitability; nearly one in three value those
decisions at greater than €1 billion. Barely
one-third of executives relied primarily on data
and analytics when they made their big
decisions on the strategic direction of their
business. Executives’ intuition and/or
experience and the advice and experience of
others in their organisation were the decision
making modes of choice for 58% of executives.
David McGee, Data Analytics and Consulting
Partner, PwC, said: “One of the key reasons for
a company’s success today is how good it is at
making big decisions. While executives say they
continue to rely on experience, advice or their
own gut instinct, they also see investment in
data and analytics as critical to success.
Experience and intuition and the use of data
and analytics are not mutually exclusive. The
challenge for business is how best to marry the
two. They know the right questions to ask. Now
they need to know how to get the right answers
from external and internal data they’ve used
over the last two years.”
Emer Coleman, PwC Digital & Analytics
Practice, added:
“The challenge for today’s Chief Information
Officer (CIO) in particular is to embrace ‘Big
Data’ and develop capabilities and skills to
understand data in the business context. CIOs
now have the opportunity to harness the power
of predictive analytics, extract value from the
data and monetise it. The broader challenges
for CIOs will also mean a shift from a command
and control model to a more iterative and agile
model. Achieving this means developing new
skills and capabilities including data cataloging
and storage techniques, ‘Big Data’ appliances
and visualisation tools, capabilities for tapping
external sources and information security and
data access procedures that comply with data
privacy policies”.
Despite executives’ comfort in often relying on
intuition and experience, PwC’s global research
further revealed that nearly two-thirds (63%)
said the use of data has changed how their
company makes decisions and they expect it to
have greater impact in the future. In PwC’s
experience, the top three changes executives
plan in decision making are the number of
people involved in making a decision, greater
use of specialised and enhanced analytics and
data analysis, and the use of dedicated data
teams to inform strategic decisions.
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