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JANUARY 2014 ISSUE 22 JERSEY S BUSINESS MAGAZINE BANGING THE DRUM A Jersey business goes global VIEW ONLINE AT BAILIWICKEXPRESS.COM ONLINE ALL THE TIME Click on Jersey s new digital media PLEASE TAKE ONE Is this the year for Jersey s Finance Centre READ THE FULL INTERVIEW ON PAGE 36 Fly to Geneva or Chambery Direct flights 5 days a week Be in resort within 3 hours of leaving Jersey Terms and conditions apply. de scotch a hand ma ntinental egg or co t breakfas fast on aked break ummy b d... y a f lat brea elf treat yoursark with our d wnies ro chocolate b Delicious Flatbreads Crispy Bacon Rolls and Fresh Bread from the Wood Fired Oven Artisan sandwiches salads ca es and pastries Freshly ground coffee and speciality teas www.donstreetdeli.com perf lunchect for time sty ta h lthy s hea d fre an OPENING TIMES Monday to Friday 8am - 6pm Saturday 9am - 6pm Sunday - Closed Truffles Olive Oils Condiments Wine 13 Don Street - St. Helier Jersey - JE2 4TQ T 44 (0) 1534 484846 WELCOME FURTHER INFORMATION PUBLISHERS If you would like to appear in Connect have a story to tell or simply want to receive a copy then please get in touch with the publishers Bailiwick Publishing (LCI) Fox Building Second Floor Suite La Rue des Pres St. Saviour JE1 3UP Telephone 01534 887740 CONNECT ONLINE For all the latest news and classifieds straight to your inbox visit www.bailiwickexpress.com and subscribe to our daily news service. EDITOR James Filleul Email editor bailiwickpublishing.com WRITERS Ben Qu r e Email ben bailiwickpublishing.com Gwyn Garfield Bennett Email gwyn bailiwickpublishing.com Paula Thelwell Email paula bailiwickpublishing.com ADVERTISING Katrina De Jesus Telephone 01534 887740 Email katrina bailiwickpublishing.com SUBSCRIPTIONS Email subscriptions bailiwickpublishing.com DESIGN AND PRODUCTION Mark Jackson Email studio bailiwickpublishing.com Artwork under 10Mb in size may be sent to this address. The chances are you will be reading this in either one of two states of mind. Firstly there will be those who have surfaced after the festive period brimming with optimism ideas and the desire to shake 2014 by the neck and show it who s boss If you are that fired up already then I salute you. Or maybe its just time to sober up. Or perhaps you are a type two Stand up all those readers who may pretend outwardly to be like the type one described above but actually they re just going to dip their toe gently into the (hopefully) warm bath of 2014 before deciding if it might possibly be a good year or not. Actually it matters not. 2014 has room for all and here at Connect we will be providing entertainment inspiration and information to them in (roughly) equal measures with a sprinkling of passion wit and insight thrown in and that s just The Fool (page 46). Take this edition for example. For the type one team we have our big news - literally....by the time you read this we will have launched a new daily digital newspaper for Jersey called Bailiwick Express. We believe it will be a smart addition to the Island s main media see page 20 for the behind-the-scenes story of its genesis or better still click bailiwickexpress.com to sign up. Or perhaps you might prefer the profile on page 48 - we wanted to kick the New Year off with something a little different - and on that measure manufacturing hand-made drums in Jersey for export around world certainly scores a perfect ten. Chris Troy JANUARY 2014 ISSUE 22 JERSEY S BUSINESS MAGAZINE BAILIWICKEXPRESS. COM A Jersey business BANGING THE DRU M goes global JANUARY S ISSUE VIEW ONLINE AT ONLINE ALL THE TIME Click on Jersey s new digital media PLEASE TAKE ONE Is this the year fo Jersey s Finance Ce r ntre READ THE FULL INTE RVIE W ON PAGE 36 Fly to Geneva or Chambe ry Direct flights 5 days a week Be in resort within 3 hours of leaving Jersey Terms and conditions apply. you are very welcome in Connect. For regular readers (both of you) Unplugged (page 36) continues our focus on development in Jersey this month the man in charge of rebuilding the Waterfront explains how close he is to breaking ground on the Jersey International Finance Centre. Finally we haven t wasted the Christmas holiday with little things like opening presents seeing the family or taking a break oh no. Foolishly we have set the bar a little higher for Connect each month by introducing two new features (see pages 42 and 58) and a brand new columnist you ll find iSpy on page 53 iSpy s brief is to observe and comment on anything produced by the media whether it comes from a news outlet communications agency or social channel. And yes Connect and Express are fair game too. I hope you enjoy it This magazine can also be read online at www.bailiwickexpress.com Copyright Bailiwick Publishing LCI. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. Views expressed by our contributors are their own. Editorial opinions expressed in this magazine are not necessarily those of Bailiwick Publishing. Bailiwick Publishing does not accept responsibility for the advertising content. While every effort is made to achieve total accuracy Bailiwick Publishing cannot be held responsible for any errors or omissions. Happy New Year James Filleul Editor Please recycle this magazine. Like Bailiwick Express on Facebook Follow us on twitter connectjersey www.bailiwickpublishing.com JANUARY CONNECT 01 ON THE COVER UNPLUGGED A little less conversation a little more action it s not just an Elvis remix it could be the story of the States of Jersey Development Company in 2014. After years of talk the States-owned company which took over from the old Waterfront Enterprise Board could be just months away from breaking ground on the flagship Jersey International Finance Centre it is also about to finalise the development plans for the old Jersey College for Girls site. Ben Qu r e spoke to the company s Managing Director Lee Henry to see if they were ready for the off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 REGULARS LOCAL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 NEXT QUESTION Luke Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 TECHNOLOGY Julian Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 SLIDING DOORS NEW Kevin Keen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 WHO S THE FOOL ................................... 54 42 53 18 04 46 NO ORDINARY DAY JOB Chris Troy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 iSPY NEW ................................................ 53 GLASS HALF FULL The Grace Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 HERE S THE THING... ................................ 56 MY SECRET LIFE NEW Rev Mike Lange-Smith. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 SPECIAL REPORT Bailiwick Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FEATURES CLOUD COMPUTING JT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Calligo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 OUTSOURCING BEBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 02 CONNECT JANUARY www.bailiwickpublishing.com 20 CONTENTS 48 30 CONTENTS JANUARY 2014. ISSUE 22. 28 36 58 WANT THE LATEST BUSINESS NEWS TO COME TO YOU Scan the QR code and click to send us your email address. www.bailiwickpublishing.com JANUARY CONNECT 03 NEWS Want this magazine delivered to your home or office Visit www.bailiwickpublishing.com to subscribe Barclays Community Awards Four local charities who support young Islanders received funding totalling 24 000 from the 2013 Barclays Community Awards. The four awards reflected Barclays global commitment to support young people through its community initiative 5 Million Young Futures which aims to develop the skills young people require in order to fulfill their potential. The recipients were CommunitySavingsLtd whichreceived 5 000to support its new money managementtrainingproject toimprovefinancialliteracy amongyoungpeopleand otheradultgroups TheShelterTrustwas awarded 7 500toexpand theuseoftheYoungPerson s OutcomesStar toprovide moreprogrammestobenefit youngIslanders Thenewcharity Words andNumbersMatter received 4 000toimprove literacy and numeracy among18to25yearolds JerseyMencapreceived 7 500forthecharity s Money Skills workshops whichareaimedatyoung adultsinJerseywitha learningdisability Jersey Director for Barclays Wealth and Investment Management Paul Declat said the aim was to support young people in gaining key financial entrepreneurial and employability skills and the projects reflect these goals. Change of ownership for Rossborough The parent group of locally managed insurance broker Rossborough The Giles Group has been bought by global broker Arthur J Gallagher & Co for 233 million. Rossborough Insurance Group Managing Director Clive De La Cour said the acquisition was an exciting development for Rossborough which has offices in Jersey Guernsey and the Isle of Man and for the company s clients. This is a fantastic piece of news for us and for our clients as Rossborough will now be part of one of the largest insurance broking groups in the world. Arthur J Gallagher & Co has a very strong London market presence which means we will now be able to provide our clients with coverage for highly complex risks in more than 110 countries while still providing a professional local service he said. Gallagher International CEO David Ross said While it feels great to have completed our largest ever deal here in the UK the hard work really starts now. We will work tirelessly to bring the various divisions of the two businesses together and the successful integration of Giles within Arthur J. Gallagher will be our number one priority. 04 CONNECT JANUARY www.bailiwickpublishing.com Investment Outcome Room to Roam Tuscany Italy N 43 46 2 E11 13 6 Where will your investments take you Your world isn t confined to a single set of geographic coordinates. Neither should your investments be. We search the globe to find outstanding investment ideas wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 canaccord.com offshore Investments can fall in value and you might get back less than you invested. To us there are no foreign markets.TM Canaccord Genuity Wealth Management is a trading name of Canaccord Genuity Wealth (International) Limited ( CGWI ) which is licensed and regulated by the Guernsey Financial Services Commission the Isle of Man Financial Supervision Commission and the Jersey Financial Services Commission and is a member of the London Stock Exchange and the Channel Islands Stock Exchange. CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered office 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. NEWS For news stories every day visit www.bailiwickpublishing.com to sign up to our daily email news service Schools en garde thanks to Moore Stephens sponsorship Primary school children are being encouraged to take up the sport of fencing thanks to a donation of specialist kit by Moore Stephens Jersey. St John and St Saviour are the first schools to take up the offer and have received specially designed plastic swords protective masks and vests. Economic Stimulus from Housing The Housing Department is committed to spending more than 22 million on at least five capital development projects in 2014. These include refurbishing 20 units at Nicolle Close in Clarendon Road and 39 units at Hampshire Gardens in Aquila Road both in St Helier. In addition the department plans a complete makeover for De Quetteville Court high rise flats in Ann Street and the implementation of the phase three redevelopment of Le Squez estate in St Clement. Lastly it plans to put a project in place to create 44 new social housing units at Lesquende at Belle Vue St Brelade. Housing Minister Andrew Green said the department was prepared for an extremely busy year as it continued its work to bring all stock up to the Decent Homes Standard over the next ten years. Our Capital Projects Plan is an integral part of achieving that goal. The development of new social rented homes is also of vital importance and we have a number of projects being prepared that will assist in that area. We have already provided significant support to the local construction industry and our future programme will also provide valuable stimulus he said. Offshore law firm of the year Mourant Ozannes was named Offshore Law Firm of the Year at the 2013 British Legal Awards. Mourant Ozannes was selected from a shortlist of five law firms including Maples and Calder Walkers and Ogier to win the award which was judged by a panel of senior general counsel and business figures. Organised by Legal Week the awards celebrate achievement excellence and innovation in the legal industry whilst recognising the contribution the legal business community makes not just to the UK economy but also to the wider community The award was collected by Robert Duggan Managing Partner of Mourant Ozannes London office who said they were excited at receiving the award It is a fantastic achievement and acknowledges the hard work expertise and innovation of everyone within the firm as well as our market-leading and integrated BVI Cayman Guernsey and Jersey law practices he said. 06 CONNECT JANUARY www.bailiwickpublishing.com Looking for a mortgage with a difference Knock on our door We are a familiar face to many on the island. Our high level of service and innovative financial thinking make us stand out with local professionals and entrepreneurs. We now offer a range of flexible mortgage facilities built around your individual financial circumstances and cash flows. For more information about our range of specialist banking services including our executive mortgage product please contact Karen Scott on 01534 512 653 or visit www.investec.co.uk executiveproducts Private Banking Mortgages Investec Bank (Channel Islands) Limited is part of Investec Specialist Bank and a wholly owned subsidiary of Investec Bank plc. This document is distributed by Investec Bank (Channel Islands) Limited which is licensed in Guernsey by the Guernsey Financial Services Commission under the Banking Supervision (Bailiwick of Guernsey) Law 1994 and the Protection of Investors (Bailiwick of Guernsey) Law 1987 to carry on banking and investment business. Registered Address Glategny Court Glategny Esplanade St Peter Port Guernsey GY1 1WR. Registered Number 5845. The Jersey Branch of Investec Bank (Channel Islands) Limited is regulated by the Jersey Financial Services Commission to carry on deposit taking business under the Banking Business (Jersey) Law 1991 as amended. The Jersey Branch registered address is One The Esplanade St Helier Jersey JE2 3QA. Telephone calls are recorded. December 2013. Your home may be repossessed if you do not keep up repayments on a mortgage. This is for information purposes only and is not to be considered a formal offer or solicitation of an offer to subscribe to the Executive Mortgage or any other financial instrument. Applications are subject to status and availability. NEWS Follow us on Twitter connectjersey Shadow board for new housing company The States will this month debate proposals for the new housing company s shadow board lodged by Housing Minister Andrew Green. Members will be asked to approve the terms of reference and appoint directors of the Housing shadow board for the period to the incorporation of States-owned housing as a company wholly owned by the States of Jersey. Deputy Green will recommend that the following people are appointed MichaelJones (non-executivechairman) HeatherBestwick (non-executivedirector) JaneMartin (non-executivedirector) ColinRussell (tenantrepresentative director) FrankWalker (non-executivedirector) In addition the board will be joined by the Chief Executive Officer of the Housing Department Ian Gallichan. Deputy Green said he was confident that the proposed directors would provide a strong balance of skills expertise and experience that will help contribute to the successful incorporation of the Housing Department and the success of the new Housing company. James Baker and composed of aviation experts. Economic Development Minister Alan Maclean said it is an exciting opportunity for Jersey Thanks to its business friendly environment simple and attractive tax framework and world class professional and financial services infrastructure Jersey already offers a compelling proposition to individuals and companies looking to relocate or expand their businesses. The launch of the Jersey Aircraft Registry will undoubtedly add to Jersey s overall offering and provide local businesses with significant opportunities particularly in the fiduciary legal and financial services arenas. New look for manpower returns This month sees the introduction of a new reporting system for the six-monthly manpower returns required from employers. For the first time businesses can choose to link their manpower return submission with the existing ITIS process completing both forms online. Part of this will be the introduction of a new simple website to replace the old paper and email forms. This new requirement follows the introduction of the Control of Housing and Work Law last year. The information will help government monitor and manage immigration by ensuring that businesses are complying with any restrictions on the number of migrants they can employ and providing the Island with employment and population statistics. In addition to the information employers supply for ITIS returns they will need to provide the following to satisfy the manpower element of the submission Whetheranemployeehas registered licensedor entitledresidentialstatus works part- or full- time or is employed on a zero hour contract Whatcontracttype (permanent non-permanent) they are employed on and Whetheranemployeeis exempt undertheLaw. Jersey progresses plans for its own aircraft registry Economic Development is planning to establish a Jersey Aircraft Registry in the summer. It hopes the registry will be attractive to internationally mobile business jet owners as well as local aircraft. Policy relating to the structure of the Registry has been developed through a private sector working group chaired by Assistant Minister for Economic Development 08 CONNECT JANUARY www.bailiwickpublishing.com Make the right choice Choose one of our trainee opportunities in Audit or Tax and start something special. If you re interested in joining a world-leading professional services firm that will challenge develop and reward you in equal measure visit www.careers.deloitte.com to see what your options are. It s your future. How far will you take it 2013 Deloitte LLP. All rights reserved. NEWS Want this magazine delivered to your home or office Visit www.bailiwickpublishing.com to subscribe Jersey Innovation Fund open for business Economic Development has appointed four nonexecutive directors to the board of the Jersey Innovation Fund. Aaron Chatterley Dave Allen Peter Shirreffs and Tim Ringsdore have joined Tim Herbert who was appointed as non-executive chairman in September. Mr Herbert said My aim was to identify individuals for the board that have a broad range of business skills and experience. Between them there is not much they don t know about private enterprise investments lending risk management and most importantly spotting the entrepreneurs that the fund is there to assist. With the board in place I am looking forward to having good quality meritorious innovative proposals to consider. The fund is an important element of the States of Jersey strategy to deliver growth and diversification in the local economy by supporting investment into original business ideas and improving Jersey s international competiveness. The commitment to this initiative was confirmed when the States earmarked 5 million pounds for the fund. Its aim is to introduce new investment into the local economy provide funding and support entrepreneurs start-ups and established organisations with innovative investment. The board which also has representatives from the Economic Development Chief Minister s and Treasury and Resources departments will review all applications and make recommendations on which ones should be given funding support to the Economic Development Minister. Tim Ringsdore Matt s appointment we are well positioned to not only continue with our success locally but to seek out and act on opportunities for further growth. Regus is the world s largest provider of flexible workplaces. Products and services range from fully equipped offices to professional meeting rooms and business lounges as well as the world s largest network of video communication studios. Customers such as Google GlaxoSmithKline and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus allowing them to focus on their core activities. Over 800 000 customers a day benefit from Regus facilities spread across 1 500 locations in 600 cities and 100 countries which allow individuals and companies to work wherever however and whenever they want to. Regus was founded in Brussels Belgium in 1989. It is registered here in Jersey headquartered in Luxembourg and listed on the London Stock Exchange. Regus appoints new Commercial Director Regus has appointed Matt Mackenzie as Commercial Director of their Jersey Business Centre. Mark Shortland Area Director for Regus South Coast Operations said We are delighted to welcome Matt back to Regus. We opened our doors here in 2009 with Matt as General Manager and he quickly and successfully established the brand as the market leader here in Jersey. He has a sound knowledge of local business needs and is well versed in the legal requirements of operating in this jurisdiction. Regus is expanding rapidly across the globe and with 10 CONNECT JANUARY www.bailiwickpublishing.com Your professional dreams are closer than you think For a small business owner moving into a larger office is just a fantasy. Take the leap and let Regus handle the rest. The Regus Advantage Floor One Liberation Station Esplanade St Helier Jersey JE2 3AS Contact Matt Mackenzie on 01534 719100 or email matt.mackenzie regus.com www.regus.co.uk the first to know www.bailiwickexpress.com Jersey news and classifieds wherever you are - online on your mobile and on your tablet NEWS For news stories every day visit www.bailiwickpublishing.com to sign up to our daily email news service Nautilus expands into Mauritius said the creation of Nautilus Fiduciary Mauritius Limited would give clients access to a greater pool of experts. We are focused on delivering clients an exceptional service through a robust and dynamic regulatory framework with access to multiple jurisdictions and this move will help us to continue doing this. Our clients are increasingly globally mobile and by offering the same Nautilus service in multiple jurisdictions we are best placed to meet their needs he said. Our controlled approach to Nautilus expansion strategy over the last 14 years demonstrates the level of importance we place in maintaining our high levels of client service - our clients best interests are very much at the centre of our business strategy added Mr Cowleard. Jersey-based Nautilus Group has opened an office in Mauritius. The Managing Director of Nautilus Trust Company Limited Jason Cowleard Jersey Dairy opens up Chinese market A new chapter in the 250-year-old history of the Jersey cow has begun with the first export of milk to the Far East. A 40ft-container packed with 23 000 litres of UHT milk left Jersey for Hong Kong late last year to test the market for future sales to China. Social media is playing a major role in telling Chinese consumers about Jersey and its dairy products. E-commerce is a massive market in China which already has more online shoppers than any other country an estimated 214 million. The Hong Kong distributor 759 Store has placed video clips about the Island specially commissioned by the Dairy on Facebook. The Hong Kong distributor operates 180 high-quality convenience stores throughout Hong Kong Island the Kowloon peninsula and the New Territories (which have a total population of seven million). Its website receives half-a-million hits each week. Jersey Dairy has also produced a short film for online broadcast which features interviews with dairy farmers Andrew Le Gallais the Chairman of Jersey Dairy - Tom Perchard Paul Houz and his daughter Becky (Miss Battle of Flowers 2012) and highlights the quality and health benefits of Jersey milk. 14 CONNECT JANUARY www.bailiwickpublishing.com ENGAGE THE RBC EXECUTIVE SERVICES TEAM AT RBC.COM EXECSERVICES The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. Managing your wealth begins with building a relationship. Our approach is based on taking the time to fully understand what s most important to you and helping you reach your goals for the future. With these objectives in mind your RBC wealth manager is able to provide the insights and expertise necessary to help you reach them. Learn more about the approach that has made us one of the world s top 10 wealth managers at RBCWEALTHMANAGEMENT.COM JERSEY ENGAGE THE RBC EXECUTIVE SERVICES TEAM AT RBC.COM EXECSERVICES TM There s Wealth in Our Approach. The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. BANKING CREDIT INVESTMENTS TRUST TAX CONSULTANCY CUSTODY FUNDS EMPLOYEE BENEFITS RBC Wealth Management is the global wealth business of Royal Bank of Canada and affiliates. Scorpio Partnership Private Banking Benchmark 2013. This measurement includes all global RBC Wealth Management affiliates including the U.S. division. TM Trademark(s) of Royal Bank of Canada. Used under licence. Above mentioned services are offered through Royal Bank of Canada or its affiliates. This advertisement does not constitute an offer of products or services to any person in any jurisdiction to whom it is unlawful for RBC Wealth Management to make such an offer. CA Nov 14 969 NEWS NEWS RE.VIEW A new after-school club has been set up for teenagers to tackle the lack of opportunity for technically minded students and the need for a digitally skilled workforce in the Island. Jersey Coders is aimed at Year 7 and is completely free of charge. It is a not-for-profit organisation aiming to invest in and inspire young Islanders to ensure Jersey has a strong IT future. Jersey digital marketing and web design agency E-scape is the first of its kind to become a Google Partner in the Channel Islands and Isle of Man. Members receive exclusive access to a range of benefits including live training events industry insights extra support promotional offers beta test opportunities professional networking and other tools designed just for agencies. Jersey has signed up to the Berne Convention for the Protection of Literary and Artistic Works to complete a project to update the Island s century-old copyright law. The new Intellectual Property (Unregistered Rights) (Jersey) Law and subsequent membership of the Berne Convention will ensure that creative content originating in Jersey will have automatic copyright protection in much of the world. The Writing s On The Wall So many speeches so many words - but how do you tell which are said most often Connect presents a new feature (powered by the clever folks at www.wordle.net) that gives a graphical summary of what the movers and shakers are saying. This month we deconstruct Chief Minister Ian Gorst s December speech to the Institute of Directors... 16 CONNECT JANUARY www.bailiwickpublishing.com NEWS For news stories every day visit www.bailiwickpublishing.com to sign up to our daily email news service Chartered accountants Bracken Rothwell - and the connected regulated fiduciary services business Fairway Group - have joined PrimeGlobal the world s third largest association of independent accounting firms. PrimeGlobal represents a growing number of independent accounting firms that offer a wide range of services including tax audit management consulting wealth and risk management investment banking and more. Jersey Electricity has been awarded the Sword of Honour by the British Safety Council in recognition of excellence in the management of health and safety. The utility provider achieved the maximum five stars in the British Safety Council s Health and Safety Management Audit scheme between August 2012 and July 2013 and also had to demonstrate best practice throughout the business from shop floor to boardroom. Founder and chairman of GoldMoney James Turk has retired as chairman. However he will continue to serve on the board as a non-executive director utilising his knowledge gained from 45 years of experience in international banking finance and investments. Mr Turk founded GoldMoney in 2001 with his son Geoff to use the Internet to provide a convenient way to buy and store precious metals. It currently safeguards more than US 1.6 billion of assets on behalf of over 22 000 customers from around the world. The way Jersey protects its historic environment has been upheld following a Royal Court ruling with regard to Seymour Villa a Victorian town house in Longueville. This confirmed that a decision by the Planning Minister about whether to list important buildings should be made on the heritage value of the building alone and not on the state of the building the cost of repairing it - or the planning implications of listing. For the discerning health conscious individual. Strictly Limited Founder Member Offer Now Released To book your free consultation call 614800 www.healthhaus.co.uk www.bailiwickpublishing.com JANUARY CONNECT 17 Find the latest jobs online at www.bailiwickexpress.com New head of real estate at RBS RBS International in Jersey has appointed Gordon Paterson as its Head of Real Estate. In his new role he is responsible for the management and development of the bank s real estate business across RBS International providing leadership and strategic direction for a specialised team that delivers a diverse range of financial products and services to its broad client base. Mr Paterson whose most recent role was as the Head of Corporate Credit at RBS International has been in Jersey since 2007. He has more than 32 years experience within the group including senior roles in risk management and financial analysis across a broad range of sectors. Graeme Smith Regional Director at RBS International said Gordon has been appointed to a key position and will be spearheading the development of what is already a highly successful real estate finance business and one where we see further growth opportunities. His wide ranging experience and evident track record in developing strong working relationships makes Gordon an ideal candidate to take on this key role. First Names Group appoints a new Associate Director Michelle Leverington Trust fund and corporate services provider First Names Group has appointed Tom Hardman as an associate director in its Jersey office. He will be responsible for managing a portfolio of clients and intermediaries in addition to supporting the group s growth objectives. He previously worked for a leading investment consulting practice and in the trust department of a global bank before moving to First Names Group. The group now has more than 460 First Names operating in eight strategic locations and is one of the world s largest independent trust fund and corporate services providers. The Managing Director of First Names (Jersey) Limited Mark Pesco said I am really pleased Tom has come on board as an associate director. His background makes him the ideal person to add to our Jersey team and I am sure he will be a great asset to us as we continue to grow and expand our service offering. New senior litigator for Ogier New head of wills and probate at local law firm Jersey Solicitor Michelle Leverington has joined Hanson Renouf Advocates as the Head of Wills and Probate. An adjunct professor in Succession Law at Jersey s Institute of Law Michelle brings with her professional experience in will drafting estate planning and probate administration including dealing with complex estates such as family run businesses and resolving disputes between family members. Michelle is also playing a significant role in the property and conveyancing department where she acts in the purchase and sale of properties and additionally she advises borrowers and lenders in relation to commercial and private loans. Amanda Mochrie has joined Ogier s litigation team as a senior associate. The firm said the experienced offshore litigator had joined from Trott & Duncan Barristers and Attorneys in Bermuda one of the leading law firms in that jurisdiction. Her practice includes contentious trusts fund litigation high value multi-jurisdictional disputes and reinsurance expertise. Amanda qualified as an English Barrister in 1994 as a Solicitor Advocate of England and Wales in 1998 and was called to the Bar of Bermuda in 2010. She is a member of the Society of Trust and Estate Practitioners (STEP). The Head of Ogier Litigation in Guernsey Simon Davies said We are delighted Amanda has joined our team bringing with her a wealth of experience. Our litigation practice continues to manage a very heavy case load and her skills particularly in respect of trust and fund disputes will be put to great use. She is a very welcome addition to the firm. 18 CONNECT JANUARY www.bailiwickpublishing.com APPOINTMENTS Landlord s son takes up senior post at pub chain The Liberation Group the largest pubs bars eateries and drinks business in the Channel Islands has appointed Gary Kelly as its new Head of Marketing. Jersey-born Gary is no stranger to the group his parents having been landlords of Liberation Group pubs for more than 20 years. His new role will see him marketing the group s portfolio across the bailiwicks. The Chief Executive of Liberation Group Mark Crowther said Gary has definitely hit the ground running quickly getting up to speed with all areas of the business. With his own experience of the hospitality industry and background in design he will bring a new perspective and some fresh ideas. We re really pleased to welcome him as part of the team. Gary who describes himself as a typical Jersey boy who enjoys a round of golf or a game of football at the weekend followed by the odd pint of Liberation Ale said he was really excited to be working for Liberation Group. I would really like to push the Liberation brand across Jersey Construction Council board elections Jersey Construction Council has elected a new board for 2014 to represent the views of the local industry. Martin Holmes remains in the post of Chairman for a further 12 months and the new committee comprises SteveJacobs-Company Secretary TomHart-Treasurer IanWilson-Chairman ofthe Membership and Communications Sub-Committee MarcBurton-Chairmanof the Education and Training Sub-Committee NigelBlandin-Chairmanof the Health and Safety Sub-Committee Mr Holmes said The JeCC continues to liaise with government on various issues and is in constant contact with a number of departments as part of the council s commitment to represent the views of its members. even more by making it as uniform as possible. Ultimately the ambition is for Liberation Group to have more exports to the UK so it s important the brand has strength and unity both in and outside of the Island he said. Proud Winners at the 2013 Jersey Construction Awards Structural Engineering Civil & Geotechnical Engineering Mechanical & Electrical Engineering Historic Building Conservation Environmental Engineering Consulting civil structural mechanical and electrical engineers t 01534 766655 f 01534 766650 e admin hartigan.co.uk w hartigan.co.uk www.bailiwickpublishing.com JANUARY CONNECT 19 SPECIAL REPORT Online all the time For the first time in more than 20 years there is a new mainstream player in the Channel Islands media. Bailiwick Express launched this month bringing a digital newspaper to the media scene. It s produced by Bailiwick Publishing the company behind Connect. Ben Qu r e set off to get the five Ws who what when why and where The business of news is old. The technology behind newspapers goes all the way back to Roman times radio news harks back to the 1920s and television news broadcasting dates all the way to the 1940s. And since the 1940s... well there s not been so much progress really. The arrival of the internet and social media has posed a slippery challenge. The print and broadcast media had just started getting to grips with the idea of having websites when Facebook and Twitter emerged as a way to distribute and publish on an enormous scale for free. The economic barrier to publication has all but disappeared and with that change broadcast or print media could confirm the story and even get it on to their own websites. Two years ago the wrestler actor Dwayne The Rock Johnson appeared to tweet about the death of Osama bin Laden before the news had been announced by the White House let alone been picked up by the media. Newspapers in particular are still struggling with the online challenge. News International is leading the small pack who have started to erect paywalls around newspaper sites so that only those who pay a subscription fee can view their content while others are sticking resolutely to a free model. Whichever model they choose newspapers (and to a lesser extent broadcasters) face a tension between posting their key material online or saving it for the physical or broadcast product. At the same time the recession has hit marketing and advertising budgets creating a perfect storm that has sunk many British local newspapers who found ad revenue and circulation dropping because of economic conditions and the sudden explosion of free alternatives that are just a few clicks away all the time rather than being in a newsagent down the street and only at a certain time for a certain cost. All of this adds up to one of the reasons why there s so much heat on Britain s dominant media player the BBC who don t have to face the same economic pressures as commercial operators. But broadcasters face challenges of their own. When you can get news on your computer at work on your iPad at home or on a smartphone at anytime at all how sustainable is the old appointment to view model that sustained the Nine O Clock News Rolling 24-hour news channels are part of the industry s answer to that and they ve proved popular but they cost a lot of money to run. And when almost every story breaks on Twitter before it hits the news media anyway The whole principle behind Bailiwick Express is to be online all the time giving people high quality news analysis and features as well as daily classifieds and local information. And that will be available whenever the readers need it and in whatever format they need it in. James Filleul the rise of popular blogsites such as Guido Fawkes the Drudge Report Buzzfeed and Zero Hedge have changed the news landscape radically. The gossip website TMZ was reporting Michael Jackson s death in June 2009 a full three hours before any of the 20 CONNECT JANUARY www.bailiwickpublishing.com www.bailiwickpublishing.com JANUARY CONNECT 21 We re building a product that s all about getting the news however you want to get it if you re a Twitter or Facebook user you can get our material through that. If you just want the three biggest stories and a bit behind the headline then that s where the email comes in. And if there s something that you re particularly interested in then you can click through and get the story. Mark Jackson SPECIAL REPORT the old measuring stick of being first with the news no longer really makes any sense. Do readers register whether it s Sky News or the BBC who tweeted some newsflash a few seconds before the other Of course not. So what does all of that mean here in Jersey All of the main local media have websites and a social media presence but it s an adjunct to their main business which is printing or broadcasting news. Some have invested in apps to support use on smartphones and tablets but beyond the crazy world of the blogosphere there s no main professional media based solely online. Until now. The launch of Bailiwick Express on 6 January (by the company that also publishes this magazine Bailiwick Publishing) has changed that. The idea is simple a professional online news product with breaking stories analysis international news and sport all supported by advertising and classifieds (no pay wall) each weekday Express will send its top stories to all readers via email and there will also be a special weekly classified email for jobs homes and vehicles. James Filleul one of three directors of Bailiwick Publishing said that the time was right for the new product. The media has changed massively in the last five years he said. The growth of smartphones and tablets has seen the way that we access news and information change drastically compared to how it used to be. For that reason we think that there is a space for a mainstream digital-only media in Jersey to sit on a level with the radio TV and print media. The whole principle behind Bailiwick Express is to be online all the time giving people high quality news analysis and features as well as daily classifieds and local information. And that will be available whenever the readers need it and in whatever format they need it in. It gives us the ability to use rich media such as video audio and animation. The platform itself is three-pronged. Firstly there s the daily news email which is going out at 11 am every day and is effectively the same as a newspaper sending out its front page to readers saying look at this you need to come and read it . Secondly we have built Express as a website because clearly they are designed to be accessed on any device the other option would be to have some sort of pdf or page-turning format but there are limitations there not least in accessing from a smartphone. Thirdly there is a weekly classified email so on three days www.bailiwickpublishing.com JANUARY CONNECT 23 SPECIAL REPORT from around the world and the trend is towards interactive content and tying in to social media and that trend is obvious and growing. What we are doing is setting up a business which is specifically built to make the most of that trend for a local audience. The news is a key element but you might be surprised at just how key it is. The States-run Jersey Annual Social Survey in 2012 asked a series of questions on local news which showed that the percentage of Islanders who followed the main four local media every day were as follows of the week we will send an email with ads on motoring property and recruitment. Ultimately where we want to get with this is that the technology will enable us to cater specifically for our audience. The main advantage of a digital platform is that we can ask readers exactly what they would like to receive and therefore target information to the people who are interested in receiving JEP55% ChannelTV45% Channel103FM42% BBCJerseyTV38% BBCRadioJersey23% On top of that there are the people who check in once per week 75% of us will look at the JEP on at least a weekly basis 68% will watch Channel TV 60% will tune into BBC TV news 56%willcatchthenewsonChannel103FM and33%willlistentoBBCRadioJersey. Mark Jackson the second of three Bailiwick Publishing directors and the designer behind Connect and Bailiwick Express said that the figures showed an appetite for news. But he said that it was one particular news event that brought home the potential for an online news source. About six months into the process of looking at what we were going to do the explosion at the gasworks happened said Mark. I was sat in Halkett Place in a meeting. The JEP had already come out. The TV news was not on until the evening but everyone was on their phones and on Twitter trying to find out what was going on. I thought that s where we come in get there get the story get it on the site tweet it. We don t have to hold anything back for our main publication. We re building a product that s all about getting the news however you want to get it if you re a Twitter or Facebook user you can get our material through that. If you just want the three biggest stories and a bit behind the headline then that s where the email comes in. And if there s something that you re particularly interested in then you can click through and get the story. The website is the hub that pushes the news out through all different media. Initially there had been a plan to release In relation to other projects that I ve worked on this is one of the largest. It hasn t just been a case of building in the elements that we need it s been about future-proofing it. It s going to be huge in terms of the number of pages and the quantity of content so the infrastructure behind it has been quite a challenge. Oliver Baudains it much as Amazon do by recommending items to you based on your viewing history. There is no doubt that the way that we consume media is moving into digital platforms. You look at any of the statistics 24 CONNECT JANUARY www.bailiwickpublishing.com information about the new service slowly ahead of a full announcement but Mark said that plan did not last. It didn t stay a secret for long he said. That s what Jersey is like. Everyone in the Island can know something within a couple of weeks. We had a whole teaser campaign from early December to Christmas about what this is and what are we doing. It lasted literally two weeks before we had to say look people know let s draw a line under it. To be fair once we announced it we were getting people signing up and liking the new Facebook page which I think proves the value in the platform we are using. The third of the Bailiwick Publishing directors Oliver Baudains said that pulling the various strands of the site together had been a technical challenge. There are so many elements to it he said. There is the news side which is about getting the latest news out there so from a usability perspective a lot of work has gone into the back-end platform. A lot of websites have tried to do what we are going to be doing but have muddied the waters in terms of the functionality of features that they offer the user. We are trying to be clean and innovative and to be standard and consistent in the format. In relation to other projects that I ve worked on this is one of the largest. It hasn t just been a case of building in the elements that we need it s been about future-proofing it. It s going to be huge in terms of the number of pages and the quantity of content so the infrastructure behind it has been quite a challenge. What we are doing is asking users to create accounts with us so that from day one we will build up a picture of what they are interested in whether it s business news sports international news or local news. As we build up that picture we can channel different content to feed through to them. People get a million and one emails from a million and one companies what we want to do is tailor an individual experience . So professional news tailored advertising a website a daily email most of all it s about taking the way that we ve all been doing news and advertising for years and re-arranging them so that they re set up for the convenience of the customer. Break down the different elements that constitute Bailiwick Express and it all seems pretty straight-forward so straight-forward in fact that you wonder why it hasn t emerged before. But don t all innovative ideas sound that way after a while www.bailiwickpublishing.com JANUARY CONNECT 25 C LO U D C O M P U T I N G Efficient competition lies in the Cloud The question that Cloud computing poses to businesses is not are you going to take this opportunity it s more a question of when as Katie Corbett Head of CI Corporate Sales at JT explains. t a point in the economic cycle at which companies are actively competing for business whilst simultaneously looking to make further efficiencies in their own processes and spending there is one certainty even if you re not unlocking the cost savings and service improvements from innovation your competitors are. A and customer needs. This also means we can guarantee that data stored with us will not leave the Channel Islands and will not find itself opened up to scrutiny by foreign governments. By contrast some operators can t even guarantee which country your critical and sensitive data will be kept in. Another advantage is JT s Service Level Agreement offering 99.95% uptime on our servers and a promise to improve the efficiency of your day-to-day internal systems. This commitment is delivered thanks to JT s state-of-the-art Data Centres protected by CCTV monitoring powered by secure power supplies and with laser smoke alarms capable of detecting one part permillion24 7 365.Inadditionyougetthe peace of mind of dedicated and qualified staff maintaining and upgrading them constantly. We add to this a commitment to people development and an investment in innovation so giving you our customers further advantages. By choosing JT s superior fullysupported Cloud service you can release your IT teams to focus on the projects and developments that matter to your business. This carrier-grade scalable Cloud service will offer the flexible service your business needs with the cost reduction all businesses demand alongside enhanced security. Add to this our end-to-end migration methodology to help you plan and implement the move to the Cloud and we will ensure your first steps to the Cloud are quick seamless and safe. However we understand our customers concerns and appreciate there may still be uncertainty as to how the Cloud can benefit a business and what the right strategy is. For this reason JT will also offer a specific trial programme to effectively demonstrate The launch of JT s Infrastructure-asa-Service (IaaS) offering marks a perfect stepping stone into both the savings and improvements that the Cloud creates. Instead of the traditional model of investing large capital sums into IT infrastructure and hardware that rarely operates at full capacity and which requires costly security updating and maintenance and a dedicated team of skilled and qualified staff the Cloud allows you to do something new. Through the Cloud you can buy your processing power your storage and your RAM on a pay-by-hour basis so that you re actually only paying for what you use. Alternatively you can purchase a monthly plan with pre-set levels to suit your individual needs. In essence computing power becomes a utility just like electricity gas or water. What also comes with placing IT infrastructure through JT s IaaS Cloud service is the knowledge that it has been put together in partnership with the market leaders in this innovative new way of computing. Dimension Data have made significant investment as part of their global strategy to become a leading Cloud services provider and JT are proud to have chosen this globally renowned partner. JT have taken the time to plan and design our service in partnership with Dimension Data to ensure that we have the optimum solution for our local market the benefits for your business without having to invest any capital expenditure. Our experienced sales and technical team will guide you through the process to minimise risk and demonstrate quickly to you the service improvements and cost reductions the Cloud can deliver. JT s move to the Cloud is a carefully planned step to help provide our customers with the services you demand. We have a vision to be the partner of choice for global telecoms innovation with one focus at its heart our customers. Why not contact us today to see how we can help you take your first steps to unlocking the benefits of the Cloud. www.bailiwickpublishing.com JANUARY CONNECT 27 C LO U D C O M P U T I N G To get the maximum benefit from cloud computing requires a strategic review of existing and future IT requirements. These need to be aligned to the strategic plans of the broader business. Providing visibility to the benefits of cloud computing Director of Software Development at Calligo Tom Hacquoil explains why cost transparency is one of the many benefits of cloud computing. he Pay As You Go model which is typically based on a charge per user per month means that computing costs are directly related to usage and easily understood. experience of delivering and running cloud services. CloudAnalyser leverages that experience to provide a structured and analytical assessment of an organisation s existing infrastructure and application set. It also collects statistical data from your existing systems and combines this with the results of a detailed questionnaire. The software then uses custom algorithms to evaluate the costs and benefits of using the cloud. The advantages of cloud computing can be obvious for a small business but only by using a methodical and empirical approach will larger organisations capture all of the data that is required to support the business case. Too often some of the benefits such as reduced power consumption and consequent reduced CO2 emissions are ignored because they are too difficult to calculate. To get the maximum benefit from cloud computing requires a strategic review of existing and future IT requirements. These need to be aligned to the strategic plans of the broader business. CloudAnalyser can be used as part of a consultative assignment undertaken by Calligo or one of our business partners which describes and evaluates a range of options. The costs and benefits of different scenarios are compared in a way that allows managers and business owners to make sound commercial decisions. CloudAnalyser is a unique tool providing a quantitative analytical approach to help an organisation develop their IT strategy. The output is a highly readable report supported by tables and charts which can be used at many levels of an organisation from board level downwards. T Contrast the simplicity of paying for an email service based on the number of email accounts which can fluctuate up and down with the traditional IT model of owning and maintaining physical or even virtual infrastructure. The costs of the inhouse email service are made up of dozens of line items capital investment in servers firewalls and software licence costs for email anti-virus anti-spam and archiving software support costs to maintain patch and upgrade software and hardware hosting costs including power and cooling backup costs staff costs the list goes on and on. Some of these line items are shared across other activities making a definitive understanding of what your email service or CRM or back office admin system is costing very difficult to fathom. Understanding the breakdown of IT costs and how they should be allocated back to cost centres is made a great deal easier with cloud computing. To help our clients better understand cloud services Calligo has developed a new web-based solution called CloudAnalyser . Written in-house by our software development team this proprietary tool provides features unique to the offshore market. CloudAnalyser helps an organisation understand their current IT setup and costs and compares these to different cloud scenarios. The Calligo team has more than 70 years Along with CloudAnalyser Calligo has also developed an easy to use cloud management portal called CloudCentre that provides clients with a highly visual dashboard that shows what resources are being utilised. In the case of software applications such as email for example it can show the number of active and inactive accounts and storage used. Action can be taken when an account has not been used and costs reduced to reflect non-usage. Large organisations will often be using a mix of cloud services. There could be more than one external cloud provider and one or more internal or private clouds. Managing disparate environments has been a challenge but CloudCentre can be linked to multiple cloud services to provide a single consistent management dashboard. Hybrid clouds offer many attractions as organisations maximise the return on their existing assets or use on-shore based clouds for non-data sensitive workloads. With CloudCentre Calligo is providing a single pane of glass to manage these disparate resources. It can easily provide different information to different users within the same organisation. An IT Director will want a summary view across all services whilst an IT operations manager may want to drill down into the detail of a particular server and manage it for example changing its configuration or re-booting it. Alternatively a finance manager can quickly see what services are being used and what each one costs. Each user can easily customise their CloudCentre dashboards to reflect their requirements. The first release available now is a powerful solution that provides valuable operational features. Future releases will add more self-service capability such as the ability to buy more capacity add features or to remove a user s account. In the future CloudCentre will be integrated with more Calligo and third-party services and because it is developed in-house by our own software development team we can be very responsive to the feedback of clients. The worldwide growth of cloud computing is staggering 40% compound annually. An organisation without a plan to adopt cloud is likely to be at a competitive disadvantage. Calligo already provides the broadest most technically advanced and secure cloud services for the offshore market. With CloudCentre and CloudAnalyser they are delivering powerful management tools to allow organisations to use the cloud to its maximum potential. www.bailiwickpublishing.com JANUARY CONNECT 29 OUTSOURCING How to build a better business by outsourcing Most entrepreneurs have many great talents but do they also have the time to cover all roles in their business themselves If they do can they also focus on generating income and planning the strategic direction Tracey Bull Managing Director of Bull Executive Business Services Limited (BEBS LTD) believes that help is at hand. Why outsource Entrepreneurs and small business owners have long seen outsourcing as a strategy reserved for big businesses. However technology has made outsourcing a much more viable proposition and will make a huge impact on their businesses by allowing growth increasing productivity and so supporting the bottom line. More small businesses are outsourcing tasks these days because technology has advanced to the point of professionals being able to work from anywhere coupled with the availability of extremely qualified professionals who have decided to leave the corporate world such as executive assistants marketing directors PR directors and project managers. These freelancers come on board and save the small business owner the burden of paying overheads associated with the payroll such as tax social security and health insurance as well as the office space companies need so badly in these efficient times. Also in Jersey there is the added worry of obtaining business licences. Using these freelancers can enable small businesses to compete with the bigger players in their space because of their outside skills and knowledge and can offer efficiencies and economies of scale. Before choosing which tasks to outsource look at your business and determine your strengths weaknesses and values. Strengths Brandstrength(dopeople recogniseyourbusinessname ) Uniqueproductortechnology Existingcustomerbase Strongsalesteam Weaknesses Outdatedprocesses systems(ie customermanagementsystem) Lackofsocialmediastrategytherefore missingaparticularindustrysegment Values Actwithhighsenseofintegrity Highlyprofessionalandknowledgeable aboutthebusiness government guidelines rulesandcompliance Honest trustworthyandreliable Weworkasateamwithoutreservations Wearealwaysalertand focusedonwhatwedo What to outsource Are you still providing what you originally set out to do in your business plan From your findings you can decide which functions you need to outsource after all no one can be all things. Marketing Every business requires some type of marketing large and small. When running a small company you must allocate time to create posts on social networking sites or to buy advertising. At least once a quarter business teams should revisit their current marketing plans. When to outsource Are you finding it difficult to manage the day-to-day business of your company Have you had time to revisit your strategy and look at growth opportunities Before choosing which tasks to outsource look at your business and determine your strengths weaknesses and values. Research and Development All types of research and development projects are outsourced by today s businesses everything from market research customer demographics financial research. Be skeptical of hiring one size fits all firms that claim to be capable of doing any type of research you could possibly need. Social media Tired of updating your Facebook page Running out of things to say on Twitter Still don t understand Google You re not alone. Social media engagement is critical to keeping businesses visible and relevant online but most business owners have more pressing things to do than tweet all day. If social media is taking up too much of your time find a social media manager or social media strategist to do it for you. vision of exactly what they want and assign a point person with a vested interest. The project should have an accountable stakeholder in-house well-defined scope and clear acceptance criteria. Finding the Right Contractors Before handing over the reins be sure you are working with the right partner. A good starting place is your network so ask other businesses and or your accountant or lawyer. Online networks work well like Linkedin which has personal testimonials and Twitter posts and Facebook statuses - where you can find out about the knowledge of the partner. Then of course don t forget a mutually agreeable contract that outlines exactly what you both expect from the business relationship. There will also be a learning curve on the partner s side this will get better so do be patient. There is the handing over your baby element so expect to find it hard to let go initially until trust is engaged. It is all worth it. Knowing your business is critical but keeping yourself indispensable is risky and ill advised realise that removing yourself from low- level operations is the smartest investment business owners can make. www.bailiwickpublishing.com JANUARY CONNECT 31 Project Management If a task requires skills and time your company just doesn t have in-house it s time to outsource. Development projects which are outside the team core expertise are good candidates to be passed to business partners. This is also a good opportunity to collaborate with your businesses partners involving your employees and giving them exposure to grow and learn from outside sources. In order for businesses to ensure quality control and that everyone is on the same page business owners should have a clear I m starting the New Year and wondering if there is any benefit in doing a formal business plan Well that depends. If it s to justify to the bank that you know what you are going to do and why or the business isn t paying you more than a wage you could get in employment then maybe yes. If however it s going to take two weeks writing it and during that time you could have focussed on changes to how your business actually works then really don t bother. Peter Drucker wrote an amazing book called The five most important questions you will ever ask about your organisation which defines how to go about the strategy of the business and its implementation. His questions included 1. 2. 3. 4. 5. What is our mission Who is our customer What does the customer value What are our results What is our plan ten customers. Each of those customers spends 10 each time they buy and each of those customers buys from the business ten times each year. So we have three turnover drivers here 1. The number of customers 2. How much they spend on average each time and 3. How often they spend. When you multiply these three elements together you get total turnover. So for this business turnover would be 10 x 10 x 10 1 000. In other words each customer spends 10 ten times a year so they each spend 100 in a year. And if the business has ten of those customers all spending 100 each year total sales for the year become 1 000. If this was your business you could undertake some sales and marketing activities to improve any of those numbers. Let s imagine you are able to increase the number of customers by 10%. This means you will have 11 customers rather than ten and total sales now become... 11 x 10 x 10 1 100. Increasing the number of customers by 10% increases sales by 10%. Maybe you decide to focus instead on increasing how much they spend by 10%. If you do this your customers will spend 11 each time they buy rather than 10. Total sales now become... 10 x 11 x 10 1 100. In other words increasing how much your customers spend by 10% increases sales by 10%. If instead you focus your efforts on getting your customers to increase how often they buy from you by 10% so they buy 11 times a year rather than ten then again your sales increase by 10%. So if you increase any turnover driver by 10% your total increases by 10%. So what happens if you increase all three of the sales drivers by 10% at the same time The answer is that turnover grows from 1 000 to 1 331 whichisa33.1%improvementand youmayhaveexpectedittoonlybe30% What that shows is that you can take your existing business and focus on making minor changes to price frequency of sale and volume of customers and drive dramatic change to your profitability. A business plan may help you identify the actions you need to take but it does take you away from making those actions happen and takes up valuable time. Deconstructing your business into key numbers that matter not just what you billed or collected but what drives profit will help you focus on the few actions you can take in the time available to make 2014 a great year. For me the most important question is the third one. What does the customer value In fact Drucker says The purpose of a company is to create a customer...the only profit centre is the customer. It is often easy to lose sight of that when developing a business plan as it can be easy to fall into the trap of looking internally at what we re going to do rather than focussing on the fact that at some point only one person (really) is going to make a decision to buy from you or not. Luke Smith MD of accountants Purpose delivers straight answers to common business questions. Be careful he is blunt uncompromising and if you are sitting too comfortably you may be in for a rather bumpy ride. Ifyouhavea questionforLuke pleasee-mail askluke bailiwick publishing.com Running a small business is hard work and often requires the owner and the team to do long hours just to meet the existing customers requirements. If it doesn t then you re overstaffed right So how much time do you have to write this plan Especially when every business is made up of numbers and just about everything in business that matters is a number your sales your margins your customer base your costs your profit your cash flow your customer satisfaction score your repeat business rate your conversion ratio...the list goes on. When business owners want to grow they usually focus on things like a new website or more advertising. Whilst these are all perfectly valid ways to grow a business if you don t understand the numbers behind these activities and the impact they have on your business model the results can be poor and certainly writing them all down in a business plan is pointless. There are mathematical models which sit behind every business and when you understand the models you start to truly understand what drives your revenues and profits. Imagine a really simple business which has only 32 CONNECT JANUARY www.bailiwickpublishing.com Technology. Technology in 2014 CEO and founder of Calligo Julian Box looks at technology applications in 2014 When2013cametoaclose itwas clear to me that it had been yet another year of massive changes in several areas that will have a dramatic effect on the technologies we rely on. A quick look back over the past 12 months showed that the focus clearly had fallen on data protection and privacy. Having been writing and presenting on this subject for over two years the revelations from Edward Snowden didn t come as a surprise to me - but what it did do was to substantially increase the level of interest in where data resides and who has access to it. A s we start another year I am going to focus this month s column on technology applications in 2014. For starters bring your own device (BOYD) will continue to grow quickly but it is the rapid levels of mobile device diversity that will affect organisations the most. The number and types of devices coming into businesses schools and government departments - or being demanded by organisations users - will put enormous pressure on the management of what is an ever-changing landscape of technology and a key battleground for vendors in the coming year. This will cover everything from security of data on the device to its physical protection including tracking capabilities and the ability to deliver apps and streamed content. This is an area that all businesses schools and government departments need to put time and effort into to ensure they are capable of keeping up. Ibelieve2013willbecameknownastheyear when data protection and privacy changed the direction of cloud especially for US-based providers who will now have to tackle a much more informed and sceptical worldwide user-base. So what does 2014 have in store 34 CONNECT JANUARY www.bailiwickpublishing.com Thenextbigchange thatstartedin2013 and which will see rapid take- up in 2014 is in the area of application development. Application development has been undergoing a major shift away from client server technologies which have driven many implementations around TECHNOLOGY As software has defined everything over the last decade IT has been continuingly moving away from a purely physical-based infrastructure to one of a virtual nature. First we had server virtualisation and then desktops followed by networks and now the datacentre as a whole which is encapsulated in cloudbased services. The term software defined everything comes from the push towards businesses and users interfacing with a service that is completely softwarebased. In 2014 we will see this trend continue at an ever-increasing rate and the term will become common. And my final prediction will be no surprise to readers of my column or blogs as it centres on data protection and the growth in the demand for jurisdictional-based cloud services centring on data protection data residency and privacy especially services in what I ve been calling data safe zones . These capabilities will become standard feature requests through next year whether you re using software platform or infrastructure as a service. the world for the last ten to 15 years but especially in Jersey due to its limited skills which have to date been focused on Microsoft-based technologies. The shift is to open source solutions delivered over the web it s called software as a service . This is the biggest area of cloud technology currently and is growing at an exponential rate this growth has been underpinned by the improvement in JavaScript performance which in turn is beginning to push HTML5 and the browser as a mainstream enterprise application development and deployment environment. This area is also one that Jersey should grab hold of as it s well positioned to become a leader in this space and it is one that is covered in Digital Jersey s business plan. I hope that its potential is fully realised not only by Digital Jersey but also by Economic Development - and our political leaders - as the time to position Jersey as a leader in this space is 2014 not 2015 or later as it will be too late by then. There are other similar jurisdictions already looking at this area as a great opportunity and could beat us to it. I couldn t finish an article like this without a few words on technology in schools during 2014. With the launch ofEducation svisionforITattheendof2013 thisyear is set to be an exciting time for schools and students as they look to develop new skills in technology that enable creativity and innovations across all curriculum subjects. Connected to the shift in application development is a change in technology used by software developers. Last year saw the launch of a new platform as a service framework using containers called docker . Each container has the operating system backend services like databases as well a web service-based delivery mechanism. The container with all the parts including the application can be deployed within seconds removing the need for expensive backend infrastructure like Microsoft SQL application servers or other large-scale technologies that are still being pushed as the only option for Jersey businesses. To summarise 2014 is set to be a fast-moving and exciting year on many fronts. Software development is changing massively and the Island needs to take note. I believe 2014 will continue to build on data residency and privacy and Jersey needs to keep a close eye on Europe as they are pushing to become the gold standard for data protection laws and frameworks the emergence of Data Safe Zones will be a key aspect for us. www.bailiwickpublishing.com JANUARY CONNECT 35 Building Blocks In each edition of Connect we enable someone in the news to speak directly to you in their own words... Unplugged. What you are about to read is a transcript beyond minor changes to punctuation and syntax to aid clarity these words come directly from the person who uttered them. A little less conversation a little more action it s not just an Elvis remix it could be the story of the States of Jersey Development Company in 2014. After years of talk the States-owned company which took over from the old Waterfront Enterprise Board could be just months away from breaking ground on the flagship Jersey International Finance Centre it is also about to finalise the development plans for the old Jersey College for Girls site. Ben Qu r e spoke to the company s Managing Director Lee Henry to see if they were ready for the off ... Unplugged. Lee Henry We re making good progress on a number of major projects and we hope that we ll have determination on some applications shortly to allow us to continue our discussions with tenants and subject to pre-lets commence the construction work. The finance centre is our number one priority. We re looking at constructing six stand-alone office buildings in a phased manner subject to demand but these buildings will provide the much-needed Grade A space that the financial services industry is looking for. I think it s worth pointing out that at the moment there s no Grade A space available in St Helier which is a poor position for the Island to be in given that its premier industry is office based. There s been a number of other schemes being put forward at the moment in recognition of that fact and the forecast demand for new space. The fact is the space that is currently vacant really isn t what the major institutions are looking for. It doesn t provide them with the efficiency and the flexible layouts that they are now looking for in an office. Ben Qu r e But there are a few schemes planning to fill this demand for top standard modern offices yours is the biggest then there s also Le Masurier s J1 development and Dandara s scheme at 66 to 72 The Esplanade LH Well at the end of the day it will be the tenants that decide which of those projects moves forward and I think we ve been very open about that fact. We forecast demand over the next seven years being for around 400 000 square feet and currently there is either permissions out there or designs in the pipeline for about a 1 000 000 square feet so clearly not all of those propositions will get built because the majority of them will require pre-lets to be in place before construction commences that is certainly the position for ourselves. What we are focusing on is looking at what has been provided in other jurisdictions in terms of the type of accommodation and we believe our site has some particular unique attributes that simply can t be delivered in other areas of St Helier where schemes are surrounded by other buildings. Effectively we have a blank canvas opportunity here so these buildings will be stand-alone and will benefit from natural light on all four elevations. We have also picked up on the fact that the environment is now extremely important for organisations and in particular large organisations looking at their corporate social responsibility and we have committed to achieving BREEAM excellent rating on these office buildings - they will be the first offices in Jersey to achieve that level. (BREEAM sets the standard for best practice in sustainable building 36 CONNECT JANUARY www.bailiwickpublishing.com www.bailiwickpublishing.com JANUARY CONNECT 37 38 CONNECT JANUARY www.bailiwickpublishing.com UNPLUGGED design construction and operation). In addition to that we re looking at the overall flexibility of the floor plates and on the first two office buildings we ve designed them to be column-free so there won t be any interruptions on the floor space that will allow the occupiers to have complete flexibility and ultimately will lead to very efficient arrangements for their layouts in terms of the ratios between people and area. We can get down to one person per eight square metres which means businesses will need to take less space in our proposition. BQ When will work start LH We re lining everything up to start on site back end of (the) first quarter early second quarter of next year. We ve recently appointed a joint venture comprising Camerons and Sir Robert McAlpine Limited as the main contractor for the project. For us it was important to appoint a local main contractor and Camerons are absolutely committed to ensuring as many local businesses and workers are involved in the project as possible. They recently held a meet the buyer event at which 80 local businesses registered to take part. The other element that the contractor is interested in pursuing is working with Social Security and possibly having an on-site job centre whereby people will be able to understand what skills are going to be needed and when and then to have a point of contact. These are all ideas that have come from Camerons to very much focus on local economic stimulus as this is a major project for the Island. BQ Have you got some pre-lets in place LH At this moment in time we re in detailed discussions with a number of tenants but we haven t any pre-lets signed up. We re looking at three potential occupiers for building number 4 and the earliest time requirement for the first tenant there is the end of 2015 to have the building ready for their fit-out. We are then in discussions with one tenant for building number 1. Obviously the tenant isn t going to sign any pre-lets or any heads of terms until we ve got planning approval in place. So our focus is now on securing the necessary planning permissions to enable us to then negotiate terms with the tenant and assuming the building is what they want and we re successful in those negotiations with them that will allow us to start on site early quarter two next year. BQ These tenants aren t all going to be new businesses coming to the Island there are going to be more vacated offices in St Helier as companies move to the Waterfront. What s your view about what s going to happen there Is there a role for the States of Jersey Development Company LH There could well be and you re right to point out that most of the businesses identified for the Jersey International Finance Centre are already in the Island. These businesses have leases coming up for expiry and they may be operating out of multiple locations so they have staff having to travel between their various offices or their offices may just be past their usable life if they have been built in the 1980s they may no longer be suited to the modern needs of business. What will happen to those properties that have vacated when the businesses move to new accommodation There s a natural cycle that will take place. As has happened in the past when HSBC moved out of Hill Street there were a number of properties vacated at that time. Eventually they were refurbished and re-let and the whole of Hill Street I think is now fully occupied once again but it does take several years for that to take place. Hill Street obviously was a central location and location is almost as critical as the actual accommodation itself. There may be some offices vacated that are in secondary locations and the buildings may no longer be fit for modern office occupation. Some of those properties could be changed in use to residential for example. In terms of the role that Jersey Development Company could have in those projects I think we could provide some assistance if we were asked to do so. But it s predominantly going to be led by the private landowners themselves so there needs to be agreement on their behalf if the PWC for example were in a building that was on Colomberie they have been amazed at how their move down to 37 The Esplanade has improved the business just going from an outdated office arrangement to open plan. So I think it s just the changes that have taken place to the office environment that has resulted in these properties now being out of date. www.bailiwickpublishing.com JANUARY CONNECT 39 UNPLUGGED buildings are no longer fit for office accommodation to undertake a redevelopment of the properties. BQ It s interesting that some of these buildings were built as recently as the 1980s and are not what we are looking for any more. Will there be a point at which people look at the Finance Centre and say well actually this isn t quite what we re looking for any more either LH I think what s happened locally is that we ve ended up with a consolidation since probably the 1990s with the increases in the regulation in the industry. While smaller operations may have been very comfortable operating out of some of these secondary buildings when you consolidate those businesses together you automatically require larger premises and therefore there has been this migration down to the Esplanade with the former potato warehouses offering the size of floor plates that these businesses require. PWC for example were in a building that was on Colomberie they have been amazed at how their move down to 37TheEsplanadehasimprovedthe business just going from an outdated office arrangement to open plan. So I think it s just the changes that have taken place to the office environment that has resulted in these properties now being out of date. BQ You ve been MD since the end of 2011 but you ve been here a while longer than that do you detect a change in the economic climate LH There is very positive news coming from the City of London and significant upturns in the UK s construction market and I think there s a hope that the upturn in the UK and in particular the City of London will flow to an increase in activity for the finance houses that provide and have links there so we re anticipating improvements to the economic environment locally. I think that what s been interesting though is that a number of organisations whose leases are coming to expiry - regardless almost of the economic position if they ve taken the decision that they re committed to the Island they were still having to progress with their office strategies and therefore interestingly the two aren t exactly linked. If we give the exampleof37TheEsplanade that was effectively constructed during the recession and it s fully let. BQ Moving away from the Jersey International Finance Centre what other projects are you working on that we might hear more of in 2014 LH Well the States of Jersey Development Company is 100% owned by the States of Jersey and therefore we re looking at undertaking whichever projects the States of Jersey ask of us in terms of regeneration. For example we ve got the former Jersey College for Girls scheme that is in with Planning at the moment for183residentialunits. The submission is for 40 of those to be social rented for the over 55s with the balance being Category B units. We re currently working up a revision to that application that will be submitted shortly. There are a number of concerns raised by the parents and the users of Janvrin School regarding the loss of parking in that area and so we ve developed a plan with the school and the Education department and Jersey Property Holdings that will provide them with additional parking on their site to enable us to carry out the redevelopment of JCG. We have also had a steer from the Regeneration Steering Group that we should be looking at increasing the number of affordable units on the site and there s been an agreement reached that that will be increased from 40 to 75 so those two changes will be submitted to Planning shortly and we hope to have a determination on that project towards the end of the first quarter next year. 40 CONNECT JANUARY www.bailiwickpublishing.com At this moment in time we re in detailed discussions with a number of tenants but we haven t any pre-lets signed up. www.bailiwickpublishing.com JANUARY CONNECT 41 Kevin Keen We all face major decisions in our careers. Do I take this new job or stay where I am Should I take the plunge of going into business for myself Is it time to change direction completely and retrain It s these big decisions that tell us most about our values our ambitions about who we really are. It is the moment at which our past and our future slides apart. In the first of a new series of features for Connect magazine Jersey Post Managing Director Kevin Keen tells us about the biggest professional decision he s had to make did he get it right The merger of the Le Riche Group and Anne Street Brewery was the big business story of 2002 possibly of the decade. It gave birth to the trading giant that would be known as CI Traders and was a major point in the rise of the late Tom Scott as one of the major figures in Island commerce. You might have thought that for the then 44-year-old Managing Director of the Le Riche s Stores that the merger would have been great news. In fact it was the moment that Kevin Keen knew he would leave the company where he had worked for the last 17 years... I thought long and hard about the original decision for the two companies to merge and I was persuaded that it was in their interests said Kevin. But at that point it was a big kick in the 42 CONNECT JANUARY www.bailiwickpublishing.com The change I made was to go to Jersey Dairy [as Managing Director] which was a very very risky proposition partly because it was less money a lot less money. rear for me to realise that I was not going to be at Le Riche for the rest of my career. If you d have asked me before I d have said I would be there for years I loved the place I loved the people there. It had been around as a company for 175 years or more and I had worked up to director level and I was proud of that and I had lots of very very good friends around me there. The change I made was to go to Jersey Dairy [as Managing Director] which was a very very risky proposition partly because it was less money a lot less money. I had three young daughters my eldest would have been 15 at the time this was not a small decision for me. The decision boiled down to comfort or ambition he could have stayed where he was and done well out of it but there would have been a lingering feeling that he hadn t fulfilled his true ambitions. It s fair to say that when he left St Helier Boy s School Kevin was a very long way from making it to the boardroom I had left school at 16 and went to work in the accounting profession. The economy was just booming in the mid-1970s it was impossible not to get a job. So entirely without qualifications I got a job at Alex Picot which was an accountancy firm and Le Riche was a client of theirs and I got to know all of the people through that. I spent the first ten years of my career in the accounting profession and I had sort of guessed that I wasn t going to qualify. At that time if you didn t qualify in the profession you were never going to advance so I thought that I d better get out. And that s why in 1985 I went to work for Le Riche. Basically I worked my way up from that and I ended up with a very big job running the supermarket business with 800peopleworkingforusin30stores I was the Managing Director of Le Riche s Stores. I was actually getting paid about the same as I am now 11 years later. There was a bit more democracy to the company because you had to go and explain yourselves once a year to the annual general meeting and the Le Riche AGM could be quite an exciting event. There were something like 1 500 shareholders shares were traded locally so you had to be on your toes for it. Le Riche and Anne Street Brewery were two great old companies coming together and it made sense to try to put them together. But that was clearly the tension yes it was in the interests of the shareholders. But was it in the interests of Kevin Keen I had left school at 16 and went to work in the accounting profession. The economy was just booming in the mid 1970s it was impossible not to get a job. He said It still makes me a bit emotional to think about it. I was on the board of the company was it the right decision to vote in favour of it recognising that it would end my longer term personal ambitions to actually run the whole business I had worked my way up through to being Finance Director and then to run the biggest business I might have had a shout of running the whole thing but once the merger happened it was never going to be the same company. It was a big decision. It felt like a divorce or something - not that I ve been divorced Lots of people told me I was making a huge mistake to leave a company that was www.bailiwickpublishing.com JANUARY CONNECT 55 www.bailiwickpublishing.com NOVEMBER 43 44 CONNECT JANUARY www.bailiwickpublishing.com SLIDING DOORS going to go places and to go into something that looked like it wasn t going anywhere at the time Jersey Dairy was in lots and lots of trouble. I had responsibilities with a family and everything else to think about and it was a massive risk going somewhere where the first question was can we even pay the wages There was a process to get the Jersey Dairy job but I do not think that there were that many volunteers to be honest with you. Thinking about it now it was probably the best decision for me personally because it has led to lots of other opportunities and chances to work with lots of different people and to work here at Jersey Post. It is a weird thing to describe a company as a living thing but it does feel like that. You get these people together and you re trying to go forwards and create new jobs and secure what you have already got. Because I have been lucky to work in businesses which are high profile and of interest to the Island Thinking about it now it was probably the best decision for me personally because it has led to lots of other opportunities and chances to work with lots of different people and to work here at Jersey Post. you feel an even bigger responsibility from that because these businesses are almost iconic certainly Jersey Dairy was. And that company was in deep deep trouble. And if I had not made the decision to leave and take the risks I would not be the person that I am now. In the end Kevin Keen was at the Jersey Dairy for just over four years but he credits that role for having opened up doors to being the President of the Chamber of Commerce a member of the Public Accounts Committee Chairman of Jersey Water and board roles with Jersey Heritage and The Battle of Flowers. He has been the Managing Director of Jersey Post since June 2011. I guess moving on is a good thing he said. I felt completely energised by the new opportunity and perhaps realised that I had stayed too long. Sometimes you just need a kick up the backside. www.bailiwickpublishing.com JANUARY CONNECT 45 Connect s insider in the finance industry sits at a desk somewhere near you. He s unspinnable unbiddable and very strictly anonymous. Don t expect marketing speak don t expect a rosy feeling inside and don t expect to like him (we re not entirely sure about him ourselves). Only expect this every month he ll bring you the unvarnished truth from the heart of the finance industry... Virtual Democracy (Or what Bitcoin is telling us about our world...) There is little that stirs the Fool s soul like watching the rapid inflation of a financial bubble. Having experienced the near total erosion of both conscience and sympathy over many years in the markets it is always fascinating to see the rapture with which individuals are willing to chase their savings into that Next Big Thing expecting rewards they haven t earned from an investment they didn t really understand. The latest easy way to emerge from the ether is the Bitcoin. This is the first and thus far most successful electronic currency having grown from nothing to a value approaching US 10 Billion in a little over four years. Rather than expose the paucity of the Fool s technological knowledge by attempting to provide a thorough description of the currency s operation let s content ourselves with understanding that each Bitcoin is merely a short string of unique random characters stored on a computer which people can exchange with each other. They can be bought at a number of online exchanges with real currencies (pounds dollars euros etc) and in a growing number of cases spent with both online and physical retailers to buy everything from kitchen appliances to motor cars or from plastic surgery to a Virgin Galactic space flight. Whilst the ability to buy stuff with the new currency is a nice concept it is of course secondary to most people s intentions which is to make money. And making money is what most who have taken the plunge have already done with the value of a single BitcoinrisingfromUS 0.0007(1 1300thof a dollar) at its first published exchange rate in 2009 to over US 1 200 (yes that s 12 hundred dollars) at the beginning of December 2013.That sariseof185millionpercent for the four-year period a rate even a landowning newly planning-permitted Jersey farmer might describe as not bad m luv . But of course as the vast majority of people who have not yet participated in the new currency will tell you it is of course a scam a Ponzi scheme and a disaster waiting to happen. Which like all of the world s other currencies is exactly what it is. The value of any currency is merely the belief shared by two parties that it is convertible into something else. I can change the 5 note in my wallet into a pint of Old Thumper merely because the publican knows he can convert it into wages for his staff. They in turn know that they can exchange it with their landlord in return for accommodation and on it goes. Historically under a system called the gold standard there was an explicit promise from most governments that each note could be converted into a fixed amount of gold upon demand. However with the advent of the fiat (from the latin for let it be done rather than rusty car ) currency system this is no longer the case. During the last few years of economic crisis most governments around the world have rapidly increased their money supply pumping new currency into the global financial system in the hope that economic activity would increase and that a recovery would result. But money is just a commodity and the important thing to remember when the supply of any commodity is increased is that it reduces the value of that commodity for existing holders. DEFINITION The Fool A privileged position held at an ancient king or queen s court the fool was not taken seriously by the high and mighty but was the only person able to speak the truth to power. The Greater Fool Theory The belief held by one who makes a questionable investment with the assumption that they will be able to sell it later to a greater fool . 46 CONNECT JANUARY www.bailiwickpublishing.com So in theory when a new pound is issued by the Bank of England the value of all existing pounds is reduced. And whilst the effect of one new pound might be infinitely small the effect of 100 billion new pounds entering the system (or in the case of the United States trillions of new dollars) is infinitely not. We of course see the effect of this as rising inflation which is merely another way of saying our pounds are worth less the longer we hold them. And of course having given away control of our money supply to central banks we have also ceded control over the rate of inflation which they ultimately create. On its own this wouldn t be so much of an issue especially if the value of your assets such as your house is going up. However there is a growing groundswell of mistrust in governments who because of their own financial ineptitude appear to be seeking an ever greater share of and ever greater control over how we hold spend or transfer our wealth. For people seeking a store of wealth which appreciates with inflation the choice has historically been gold. But with the near 30%collapseingoldpricessince2011 and ever-increasing strictures on the taxation and transport of the metal investors have sought other avenues. It is perhaps no coincidence therefore that the demise of gold has coincided with the meteoric rise in value of an asset that can be easily stored easily transported easily exchanged is free of government control has a finite level of supply and can even be used to buy things. So is Bitcoin the latest financial bubble Undoubtedly. Is it likely to fail Probably. Will lots of people lose lots of money Almost certainly. But none of that is really important. What is important is that there has been a sufficiently large number of people who are so mistrusting of their governments and the financial system as a whole that they have been willing to wager over 10 billion (and rising) on a series of computer characters and it has thus far worked pretty well. And if you want a real bubble to worry about that s where you should be looking. Photography by Gary Grimshaw 48 CONNECT JANUARY www.bailiwickpublishing.com N O O R D I N A R Y DAY J O B No Ordinary Day Job. Marching to your own beat Ben Qu r e went to meet a local man who has turned his hobby into his career - and is gaining global recognition. Of all of the things that people in Jersey have been doing to put food on the table over the centuries from shipbuilding to licensed piracy from cabbage farming to cattle breeding and from tourism to international finance it may well be that what Chris Troy does is unique. And that makes sense it takes a combination of boundless enthusiasm and doggedness to get to where he is coupled with a vision to take something genuinely innovative and shape a future out of it. It would almost certainly have been easier to do something else. But spend ten minutes with Chris and you ll see that was never really an option. Chris makes drums. Nothing new to that really. Drums were among the very first things that human beings ever made Neolithic man was using stretched alligator skins to make drums in China around 7 000 years ago. Drumming spans cultures it spans continents and it spans aeons it s one of the very few things that all people no matter when or where they lived have in common. We have all of us been dancing to the beat of the drum for millennia. When Chris goes to his workshop the location of which has to remain a secret he isn t using alligator skin. But he s using pretty much everything else. His company Supernova Drums custom builds drums and drum kits and ships them around the world to the UK America Scandinavia Italy and Ireland. He has sold full kits and individual snares made out of a mind-bending array of materials including traditional woods such as birch and maple to sustainably-sourced mahogany bamboo and bubinga (an evergreen wood from equatorial Africa). The idea for the company came when Chris a self-taught drummer who has been playing in local bands for years and who is an experienced drum teacher through his Drumology classes bought his own first custom drumkit. Up until then he d been playing the same Pearl kit that he d been given by his parents for Christmasin1993.Hescrimped and saved and finally brought a custom set. It was beautiful new built to his specifications but it never sounded right. That led him to learn more about what factors really affected the drum sound and that led to becoming Jersey s first custom drum designer and builder. And when Chris talks about custom drums he really means it. He s talking about customising almost every aspect of the final product. In the last few weeks he has also launched a fresh offering where he will even customise the amount of work that he does offering clients the chance to purchase just the materials to make the drums so that they can do the assembly and building themselves. Depending on the woods that you use on the inside and to some extent the outside too you can manipulate the sound he said. The choice of wood the shape and size of the bearing edges [where the head of the drum meets the wood] and the type of head that you use some with holes some with www.bailiwickpublishing.com JANUARY CONNECT 49 N O O R D I N A R Y DAY J O B centres where you hit it more. There are lots of elements to manipulate to get the precise sound that you want. On the bearing edges with a sharper contact point you get a really light sound but with a little bit more wood you get a deeper darker sound. The best way to explain it is that the lighter the wood that you re using the lighter the sound and the darker the wood the denser it is. The standard is birch outside and mahogany inside but you can manipulate what you want by using different combinations. Chris had been playing in local bands such as Esquimo and The Truth and Other Lies for several years before heading off to music collegeinBrightonin2003 where his dreams of being a studio session drummer were gently let down by his teachers themselves established session drummers struggling to make ends meet. He came back and set up Drumology the successful drumming teaching business that he still runs but the idea for Supernova Drums had been born. (Incidentally he s taughtpeopleagedfromfourto73 and he said that the simple truth about drumming is this anyone absolutely anyone can learn to do it.) To set up the business I had just saved and planned and saved and planned and then in 2009 I basically spent a year and a half in a small shed making things he said. At one point I was looking at 50 swatches of birch to try and get the perfect Ocean Blue colour trying to figure out when to sand it how much to sand it which stain to use how to dry it just everything... During the day I was doing that and not telling anyone about it. In the afternoon and evening I was teaching drum lessons. We got the website done - the guys at The Observatory did a great job with the branding and the website. I think it was March 2011 when we launched and it was such a surprise for everyone I put something on my Facebook page saying Hey friends Here s my new business and I got loads of messages back saying What the hell is this What s going on We started offering different shells to what other people were doing. My main aim was to put products out there that other companies had not thought about and had not done before. The first main product was the ResoAir which has air cavities built into the shell the point of that is with a thick shell you get lots of attack in the sound but with a thinner shell there s a darker tone there s more bass. You get elements of both with the ResoAir so it s a new thing. I brought that out and they have been going really well I contacted all of the magazines and put it out there We got the website done - the guys at The Observatory did a great job with the branding and the website. I think it was March 2011 when we launched and it was such a surprise for everyone I put something on my Facebook page saying Hey friends Here s my new business 50 CONNECT JANUARY www.bailiwickpublishing.com and since then I ve been trying to create drums that have a great sound and give people what they want. But while humans have been making drums for thousands of years they haven t been making them in a shed in Jersey and selling them all around the world. And it s in the marketing and profile-raising that this ancient craft gets a very modern twist and it s one perfectly in step with Chris innovation and creativity. How do you reach a select audience that is spread around the world How do you develop the Supernova drums brand from scratch How do you persuade people to invest in a product from a place they ve never even heard of You could spend thousands of pounds on a marketing strategy from some stripy-shirted guru to answer these questions and still end up none the wiser. Chris took a different approach and used the two most modern tools out there the web and social media. A 15-second drum solo competition was run on Instagram a band of youngsters in New York who were looking for money on Kickstarter to support recording an album was sent a free drum he started running podcast interviews with legendary drummers with a spot promoting Supernova drums at the start and which have now been downloaded by thousands of people around the world endorsements from rising bands have been publicised through social media. None of this involved a huge expense - but all of it has yielded results and pushed the name of the company. When one of his big endorsers John Birkeland Hansen of Norwegian metal band Dunderbeist recorded their last album Songs of The Buried it was the first time that a studio album had been fully recorded on a Supernova drumkit. It s things like that which get me really enthusiastic it s just great. John had a kit from a well-known brand and they had recorded with it for the album before. Every time I hear that album and it s a great album I think wow I made that . John had a kit from a well-known brand and they had recorded their previous album with it. The recording engineer that they use set both kits up to compare them and he said that hands down the Supernova kit won it completely. Jordan Sims from Jester recorded an EP on a Supernova kit in a studio and they did not have to use any effects on the drums at all it was all recorded straight from the kit from the sound source. Another relatively cheap way to put the word out is through the podcast that Chris runs called Give The Drummer Some interviewing well-known drummers about their work their recordings their kit and their lives at home it also give Chris a chance to indulge his passion for talking about movies. The interviews stretch for up to three or four hours and range wildly across subjects. But they ve found an international audience the most popular edition has been downloaded more than 6 000 times. Chris explained The major music www.bailiwickpublishing.com JANUARY CONNECT 51 N O O R D I N A R Y DAY J O B publications charge quite a lot of money to place even a quarter-page advert so that s not really an option. I listen to loads of podcasts when I m in the workshop and just thinking about advertising and promotion. The podcast lets me talk to my heroes my drumming heroes and at the same time promote Supernova. So I set it all up got it going and fired off a few emails and people started coming back to me. I interviewed Steve Smith an absolute jazz legend former Megadeth drummer Nick Menza Rodney Holmes who played on Santana s Smooth Glen Sobel from Alice Cooper s Band Steve White who plays with Paul Weller and Bobby Jarzombek who played with Halford and Sebastian Bach. We are getting buzz from it drummers are contacting me and asking if they can come on the podcast. The biggest download was Bobby Jarzombek he announced on the podcast for the first time that he had auditioned for Dream Theatre which he had never told anyone about before. Then his management came out with a big press release talking up the interview on Give The Drummer Some which was a great boost. In a way you could argue that Supernova Drums is everything that Jersey needs to be. It s a genuinely innovative business that is doing something utterly unique. It s also a business that has harnessed the power of social media to leverage awareness and recognition in some unusual and creative ways. Perhaps most importantly it s a business that s light on its feet and prepared to adapt and change and in every sense that matters it s a business that marches to the beat of its own drum. At one point I was looking at 50 swatches of birch to try and get the perfect Ocean Blue colour trying to figure out when to sand it how much to sand it which stain to use how to dry it just everything... During the day I was doing that and not telling anyone about it. In the afternoon and evening I was teaching drum lessons. 52 CONNECT JANUARY www.bailiwickpublishing.com iSPY Welcome to iSpy a new columnist whose role is to observe and comment on those who normally do all the observation and commentary the media. Nothing is sacred from their seat in a local newsroom iSpy will be turning skeptically through the pages of Connect and Bailiwick Express too as well as the work of agencies and the chatter on social media. BREAKING NEWS... Bless the Island s media. They don t get much real news to go into full journalistic mode. The nearest they get to breaking news most days is a mildly angry shopkeeper with rightwing views about immigration. But every now and then something actually happens. So pity the poor souls who were probably tucked up and switched off on the Sunday night when the Channel Islands Air Search plane went down. Within minutes they were a-tweeting with next to no information to report. That though didn t stop them from badging every last nugget of detail BREAKING NEWS . On Twitter on Facebook on the various media websites the words screamed out to convey the collective excitement of the four or five journos who had bothered to leave their pits and get out reporting. iSpy s favourite moments include photographs of er nothing. A shot of a windswept field in the middle of the night adding precisely nothing to the collective information that was in the public domain. But you suspect it was the journalist s way of making the point to their peers that they were there. Calm down dear Hold the front page... nearly finished TOO MANY TWEETS... David Cameron once said too many tweets make a tw t. At time of writing the the JEP had just over 4000 followers BBC Jersey nearly 7 000 and Channel TV just shy of 10 000. They re all it s fair to say twitter enthusiasts. Meanwhile Senator Philip Ozouf has been showing off his social media credentials (the good Senator has just over 2 000 followers) with a steady stream and occasional deluge of tweets to tell us how brilliant his department is how amazing his budget is how vital his jet-setting is and how well-regarded the Island is regarded by nations around the world. How thoughtful. Let s be frank. The vast majority of Islanders don t tweet. But Twitter does matter. Why Because it gives us a personal glimpse into the minds of those involved and its spontaneity can help you fathom what they re really thinking. Take the moment Senator Ozouf tweeted Absolute astonishment that Deputy Macon is proposing to cut short the budget debate. A serious misjudgement. Would he really have said that on the radio or TV so bluntly iSpy thinks not. Then there s the way Deputy Trevor Pitman interacts with the media through his Twitter feed. His regular attacks on the JEP and BBC are the stuff of legend. As is his ability to take events and make them fit his agenda. A classic within minutes of the death of Nelson Mandela being announced was A great shame about Nelson Mandela. Great man. Jersey s establishment and media would have rubbished him if he had been a Jerseyman for sure. One local journalist retweeted that nugget to his followers and send this reply to Deputy Pitman Think you ve excelled yourself in the opportunism stakes there. GAY DOG Let s be honest. The newspaper radio and TV need top stories every day. It must be hard some days trying to find something decent to lead with. Among the recent ones Channel TV meeting the owner of a dog which was the victim of a canine gay hate attack the BBC asking a load of Islanders how local they thought they were and the JEP telling us that retailers are having a tough time. In other news we hear a bear has been found defecating in the woods. HEADLINE OF THE MONTH ThankstoBBCRadioJerseyforthisone If you re a journalist iSpy wants titbits from your newsroom if you re in the headlines iSpy wants the inside track of your media encounter if you re a reader viewer or listener let iSpy know if you ve stumbled across something that s worth sharing. Email in confidence to ispyjersey live.com How many local magazines can you count in a coffee shop Aquietnewsday Surelynot. www.bailiwickpublishing.com JANUARY CONNECT 53 GLASS HALF FULL Glass half full with... THE GRACE TRUST came over from London in 2000. Both have had a few jobs between them over the years but it was their faith that made them friends and led them to where they are today. Gerry has been the General Manager of the Grace Trust - a Jerseyregistered charitable trust embracing Christian principles and providing both practical and personal help to some of the most vulnerable and needy in the Island since 2008. Vini who previously worked at Five Oaks Iron Works in the day and coordinated the Street Pastors in his spare time was appointed as his deputy last January. During that time they have developed a successful and inspirational double act. Ask them if their glasses are half-full and they reply as one that they are overflowing as Gerry explained. A lot of the people we deal with have half-empty glasses so ours always have to be full to the brim. We have to be very optimistic in our job as we have to keep topping other people s glasses up. Another important requirement of running the charity is to be able to listen. Vini said You never learn anything about anybody when you re talking to them only when you are listening to them. That is the one area as a faith-based organisation we are able to do and do it well. Gerry and I can provide the listening ear that a lot of agencies haven t got the time to do. Most of the time when people want somebody to listen to them they have to pay. That s the big advantage we provide a free service. We are very gentle and careful concerning our faith not to try and come over too preachy towards people. That s the best way. We find there s a silent respect there as time goes on. Gerry added They know where we re coming from. They know we are Christians but we don t ram it down their throats. Supported by 100 volunteers and the charities trustees (Chairman David Capps Vicki Lavarack and Diana Pitt) Gerry and Vini help people from all walks of Island life. From the parkies who spend On the surface Jersey is an affluent society with a vibrant caf culture and a number of Michelin Star chefs. So it may come as a surprise that every day a local charity is handing out basic foodstuffs to Islanders hit by the recession. Paula Thelwell met Gerry Padden and Vini Jones of The Grace Trust who devote their lives to helping others. Geordie Gerry Padden and Shropshire lad Vini Jones are both economic migrants who came to Jersey almost three decades apart. They are also committed Christians which is anathema to some sectors of an increasingly secular society. It is their stronglyheld faith and principled attitude to their fellow men (and women) that drives them on regardless of the barbs cast in their direction. Gerry arrived in Jersey in 1972 to work as a kitchen porter while Vini a blacksmith and welder by trade 54 CONNECT JANUARY www.bailiwickpublishing.com heath issues people from the park and people who have lost a wife or husband and are lonely people who have lost jobs and people who have never worked in their whole life. Some of the people we get are right characters - but I mean that in the nicest possible sense The Grace Trust is hoping that more local businesses will sign up for the charity s food basket scheme as Gerry explained We have been doing them for about three years and we now want to get more places involved. The reason we do it is because it s easier for people to give us a couple of tins of baked beans than to give us a couple quid. They are happy to do that because they know where it is going and it s good for us because it saves us buying the food. Wicker clothes baskets or plastic storage boxes are supplied with a list of the required food items - and collected when full by volunteers. their days in Parade Gardens and other public spaces in St Helier to Islanders who suddenly find themselves with no money to buy food. Fortunately the Island s long tradition of supporting charitable causes means they can just about keep pace with the demand on their services. But as the grip of the recession tightens the Grace Trust is busier than ever. The great thing is Jersey is very giving and the Grace Trust benefits from that Vini said. It s a community thing and it shows that the community can help. When you first come here you need to understand that Jersey is Jersey and it s really important to know how Jersey works to be able to help it. Everyone who comes here from the outside needs more than a year to work it out to size up St Helier and to see the social and economic differences and the extreme differences in wealth said Vini. The Grace Trust helps people who drop in to their office behind the Salvation Army caf in Minden Street for emergency food supplies and advice. The day before we met they had handed out food to nine people. I collected four boxes of food from our store in St Peter in the morning andby3o clockithadallgone.We are seeing a growing demand and we expect it to get bigger. We have not reached the bottom of the pit yet as there are still more jobs to go Gerry explained. Grace Trust also delivers groceries once a month to more than 70 homes. Gerry and Vini undertake prison visiting and with volunteers hold free lunches for between 50 to 60 people every Saturday in St Paul s Church. Everyone who turns up is accepted in good faith and no one is ever turned away. Gerry said People come for fellowship friendship and food the basic things of the church. I tell them they don t go to church on a Sunday they go to church on a Saturday. They are a right mixed bunch of people some who take drugs or have drink problems and some who don t. There are people who have mental www.bailiwickpublishing.com JANUARY CONNECT 55 Businesseswishingtojointhefood basketschemeareinvitedtocall GerryorVinion631667. P O L I T I C S Connect s political columnist Ben Qu r e spent far far too long covering the States during his 13 years as a noted news reporter and commentator. In Here s The Thing... he takes on a key subject each month drawing on his experience knowledge and contacts to lift the lid and stir things up Ifyouwantto contactBenQu r e pleaseemail ben bailiwick publishing.com crack-smoking binge-drinking mayor. An economist who punches a copper after being told the taxpayer isn t picking up his bar tab. A TV chef who takes recreational drugs for some relief from a failing marriage. What a scandal What a disaster Won t someone somewhere please just think of the children Here s the thing. It doesn t matter. At all. None of it. It is true that the people of Toronto do not pay Rob Ford to smoke crack or have drunken binges. Elected officials tend not to have job descriptions but if he had one I doubt that smoking crack would be on it. But while that s true it s also important to bear in mind that it is also correct to say that the fine people of Toronto don t actually pay Rob Ford not to do those things either. What they pay him for is to be their Mayor. While admitting the possibility that Mr Ford s mayoring is impaired while he s huffing away on a crack pipe (and making absolutely no comment on whether politics has become so pathetic in Jersey that well a few blasts on Mayor Ford s pipe could hardly hurt) as long as he s behind his desk by 8.15 am and brighteyed and bushy-tailed what s the problem Likewise it might have been best if Guernsey s former chief economist Andy Sloan hadn t found it necessary to punch a policeman. For one thing most people who do that end up in prison and prison is no place to ponder the laws of supply and demand or worry about the RPI. It is perhaps slightly worrying that he thinks that there might be such a thing as a free drink if not a free lunch necessarily and it does raise issues about his ability to see the mediumterm and long-term implications of momentary decisions but that appears to be a common problem among public sector economists. But does punching policemen make you a bad economist Is it worse than John Maynard Keynes advocacy of eugenics Than Hayek s chumming it up with Augusto Pinochet No. Likewise Nigella Lawson. I will personally strike dead the first man that speaks ill of Nigella. But the first man who speaks ill of her toad-inthe-hole because she s taken cocaine is an idiot of the worst kind. Even if there WAS some dispute A about the total superiority of her toad-in-the-hole compared to other lesser versions of that dish (and there is not at least not in these pages) it would be a curious leap of imagination to suppose that sporadic cocaine use was responsible for it. We re living in a strange time for these stories. It used to be that the slightest whiff of a scandal could condemn a person to a life of shame that a hint out of place could lead to resignation from the highest public offices. It s not that way anymore. One by one our faith in the great institutions politics the church commerce or journalism has been broken by waves of scandals that have told us that the inhabitants of these institutions are no better than anyone else and in some cases are a good deal worse. But while the faith has gone the interest lingers. Increasingly we re in a strange position where we re interested in these stories for what they are simple trivial stories about peoples lives. But more and more it appears that we don t think that they mean anything. So interesting yes important no. You could sense it in the reaction to the diver Tom Daley saying that he was in a relationship with a man where once there might have been an outcry of public shock or curiosity what you actually heard was the reassuring sound of the great British public really not giving a toss about something. Of course it s not always the case. Sometimes the scandal has a tangible implication. Lance Armstrong s drug-taking made a rotten lie of a sport watched and enjoyed by millions. JFK s philandering made him a blackmail target and a security liability. Members of Parliament asking questions for cash subverted the democratic process and betrayed their constituents their parties and their country. But these recent scandals aren t worth the name. Maybe these people need help of some kind maybe they re just reacting to having a bad time of things. It s fine to be curious about these things that s what goes with the pay perks and profile of being in the public eye but maybe it s better that increasingly we don t seem to really care about them. 56 CONNECT JANUARY www.bailiwickpublishing.com Need a manager to help during peaks of demand Wish someone could help organise you Unable to obtain additional headcount This is where we come in... We provide superior executive assistance marketing support new business development and project management. You simply buy hours with us to help you get over your pinchpoints at work. Still unsure Heres what our clients say... BEBS professionalism shined through. Their ability to see the big picture in a project and then to be able to break it down to deliver individual services worked well for us. Tracey at BEBS is an excellent marketer and manager. Tracey at BEBS has a natural networking ability putting people at ease developing rapport and as we know people deal with people they like If you are an entrepreneur a consultant or a small business owner and need more time to focus on income-generating tasks and building your business call Tracey Bull today on 07797 734 505 or email tracey bebsltd.com to find out how BEBS can help. www.bebsltd.com Search for BEBSltd on... My Secret Life. This month s secret life is unearthed by Paula Thelwell. When the Rector of Grouville the Rev Mike Lange-Smith reached the first milestone of adult life - deciding what to do when he left school - he was adamant that a desk job was not for him. Nor at that point in his teenage years did he give any thought to a life serving God. Mr Lange-Smith was born in Northern Rhodesia (now Zambia) and raised in Southern Africa. The only certainty on leaving school was that he would have to do national service so he intended to do it on his terms and fulfil a childhood dream by becoming a fighter pilot. I decided that flying was the future for me while most of my friends either served in the army for a year or went to university to study medicine but I had no interest in that whatsoever so I joined the air force and let them pay for me to learn to fly he said. Chatting to him over a cup of tea in Grouville Rectory it is at first hard to imagine he was ever a fighter pilot. But the average fighter from the First World War to the modern day has invariably been ordinary it is just Hollywood that portrays them as macho heartthrobs always living life at the speed of sound. What makes Mr LangeSmith s former career extraordinary is that he progressed from fighter planes to helicopters before becoming a flying instructor. His face lit up when he recalled the best experience of that five-and-a-half year period of his life flying over some of the most beautiful country in the world and at a low level. It conjures up the scene from the film Out of Africa when the characters portrayed by Robert Redford and Meryl Streep take to the sky above the Serengeti as herds of wild animals roam below. For Mr Lange-Smith that was the backdrop for his day job as was skirting the snow-covered peak of Mount Kilimanjaro. Today he serves the ecclesiastical parish of Grouville from the church on the edge of open farmland reaching to Grouville Marsh with Gorey village and Mont Orgueil on his horizon. The wildebeests have been replaced with Jersey cows and Africa s highest peak with the comparatively low hills around Queen s Valley reservoir. It s an environment that is totally removed from where he grew up but one that is now very much home to his family. The journey to Jersey and the church was not a direct route. When my air force contract came to an end I decided what I would like to do was go to university to do aeronautical engineering thinking it would be very closely related to flying. As I could not do that in Southern Africa it took me to Bristol University he explained. However going back to studying and moving to another country where he hardly knew anyone proved to be both a culture shock and a stepping stone to the rest of his life. The course was not what I had imagined. It was very academic and not really related to helicopters or flying as it was very theoretical - but I stuck it out he said. Then came the big turning point in his life. He became involved with his local It is so easy to define a person simply in terms of the one frame through which you meet them but does the job that we do today really cover all that we are - or have been Even in a small community like Jersey you can find a wealth of interesting histories hobbies and experiences sitting just beneath the surface of the person you thought you knew so well. It is those stories that we will be telling in this new series of features My Secret Life. Ifyouknow someonewho shouldfeature here pleasee-mail editor bailiwick publishing.com www.bailiwickpublishing.com JANUARY CONNECT 59 church and discovered a much deeper and more meaningful faith than he had ever felt before in his life. Having enjoyed his time as a flying instructor and feeling the desire to teach and help others he considered the ordained ministry. However his vicar advised a period of reflection before taking such a big step and suggested he combined his love of flying with his faith by returning to Africa as a missionary pilot. The purpose of missionary flying is to spread the teaching of Jesus Christ through aviation and technology so that people living in isolated regions may be physically and spiritually transformed in the same way the early missionaries took Christianity to Africa. However it also involves community development disaster response and providing medical assistance. From a personal aspect it enabled him to fly for a further two years and to apply his scientific background for the benefit of others while helping him to decide that ultimately his future lay in the church. He returned to Bristol to study for two years at the Church of England s Trinity Theological College followed by one year at the London Bible College with the aim of returning to Africa which he did. However after 12 years back in Africa now married and with two children the family decided to move to the UK - then they discovered Jersey. We went to stay with 60 CONNECT JANUARY www.bailiwickpublishing.com When I was 17 I thought I would be flying forever... ...I truly loved flying and when I was in the air force flying included aerobatics it included formation flying and low-level flying just above the tree tops. That s the difference with your airline pilot who is effectively a bus driver and your air force pilot who is your Formula 1 driver as it is all exciting stuff. friends in Guernsey then we came on to Jersey for a camping holiday which was all we could afford at that time and noticed the similarity with Southern Africa. There was the local accent (which is similar to that of South Africa where his wife comes from) and my wife who is more of a gardener than me noticed that so many of the plants growing here were the same as in Southern Africa he said. Also they found the slower pace of life Jersey s relaxed lifestyle and the friendliness of the locals very reminiscent of home . And fortuitously they were welcomed by the congregation at Grouville Church. In 2005 Mr. LangeSmith was appointed as the parish Rector. When I was 17 I thought I would be flying forever he reflected. I truly loved flying and when I was in the air force flying included aerobatics it included formation flying and low-level flying just above the tree tops. That s the difference with your airline pilot who is effectively a bus driver and your air force pilot who is your Formula 1 driver as it is all exciting stuff. It was flying that - to paraphrase lines from High Flight The Pilot s Prayer - helped him to slip the surly bonds of Earth to touch the face of God. Unfortunately the stipend of a Jersey parish Rector does not stretch to flying so Mr Lange-Smith s wings have finally been clipped. Nonetheless he said If someone put me in a plane and took me flying around Jersey I would love that www.bailiwickpublishing.com JANUARY CONNECT 61 Calligo transforms your business to the cloud Calligo the most technically advanced and secure offshore cloud service provider is pleased to announce the launch and availability of two software products designed to help you from your initial investigations all the way to managing your cloud once it s up and running. Designed and developed in-house at Calligo CloudAnalyser will help you to understand your current IT infrastructure and how to transform your organisation into the cloud. Once your cloud services are live our CloudCentre management tool provides a consolidated view of your entire infrastructure streamlining your management and monitoring processes. CloudAnalyser Online easy to use and process driven cloud transformation service. Through detailed and automated analysis of current usage models we deliver the data required to optimise your cloud environment. Through CloudAnalyser s unique capabilities applications can be aligned to the correct area of your cloud based services. CloudCentre Complete visibility and management of your cloud IT resources and services. Minute by minute statistics and extensive reporting across your entire infrastructure. Manage your tickets and invoicing as tic well as comprehensive reporting capabilities. Contact us now to find out how moving to the cloud can deliver advantages to your business www.calligo.net transform calligocloud www.calligo.net info calligo.net D E A D LY D I A R Y 1 January It begins. The International Year of Crystallography. And Family Farming. And Small Island Developing States. Hold on to your hats. We ve also got a World Cup a referendum on Scottish independence the US and UK troops pulling out of Afghanistan and slightly oddly the most camp sporting event of all time (the Winter Olympics) taking place in a country where it s apparently illegal to be gay. Equally fabulous is the fact that Greece now holds the presidency of the EU. More to the point we ve got an election in Jersey. So while you will have to put up with even more pointless distraction than usual from politicians (boo ) there s likely to be a picture in the media of one of them crying in mid-October (yay ). 16 January Chamber of Commerce lunch Chief Minister Ian Gorst For reasons passing the understanding of the Deadly Diary the phrase Gorstmeister still hasn t caught on. Get with it people. Anyways the GM is at the Chamber of Commerce lunch. Should be good he s a decent public speaker and most importantly he s got an unfortunate knack for being unable to avoid giving an honest answer to an honest question. Given that he s likely to be the first Chief Minister ever to try to hold on to the job (the other two bowed out at the end of a three-year term) he should have some things to say. 21 January The States Just the five-week winter break for States Members this year so they ll probably be a little bit sleepy when the first sitting of the year lumbers around bless their hearts. They warm up slowly with a few debates about compensating defrauded investors rules on working with tax authorities from other countries and a new board to look after the company that takes over from the Housing department. Luckily they ll knock off early in the summer to start campaigning for reelection full-time. Sorry just kidding it ll be wall-to-wall self-aggrandising nonsense from all 51 of them from March onwards. 17 January RPI Q4 2013 Last time we looked RPI was at 1.2% - and the annual RPI(X) was at its lowest point since the Stats Unit started counting in 1997. All of this is helped in large measure by the drop in the price of fuel. Increases to tobacco and booze agreed in the Budget won t have kicked in by the time that these figures come out but it s nice to know that the States are still taking inflation seriously. 22 January Business Tendency Survey - Q4 2013 The last time this survey was carried out the results were unusually perky whether that upbeat assessment of companies economic prospects will stick through the dodgy news on Flybe and flight connectivity is a bit of a question but there does seem to be a slightly different tone to it all. Expect another good result although retailers tend not to have much good to say about trading in the first quarter of the year. Deadly Diary - every month Connect will be flicking carefully through the future calendar of political and business events ...and chewing over what it finds there. www.bailiwickpublishing.com JANUARY CONNECT 63 THE ADVISOR Shareholders Agreements In previous editions I have touched on matters concerning new businesses and the benefits and disadvantages of forming a limited liability company through which to run the business. In future editions we will also consider partnerships which is another method under which new businesses can operate. For this article though I am going to focus on shareholders agreements and why when giving advice to blooming entrepreneurs I strongly advocate entering into a shareholders agreement. There is no legal requirement to have such an agreement. But with one in place there is clarity and certainty in respect of what can and cannot be done and how it should be done which in turn will reduce the risk of conflict which in turn should assist the new organisation to run smoothly so increasing its chances of success and profitability. If nothing else entering into a shareholders agreement focusses minds. When it is being drafted questions are asked and the shareholders are required to give thought to possible future scenarios that they may have never even contemplated. At this early stage the life of the company is being mapped out and I have found that doing so greatly increases the desires for common goals between the people behind the company right from the beginning. First and foremost I have seen so many successful companies break apart and become destroyed from the inside because of internal disagreements which could all have been avoided if only agreement had been reached from the start. If I had 1 for every time I have heard new business partners say it will never happen we get on very well together but later find themselves at each other s throats I d be quite a lot better off financially. Disputes do arise and they arise frequently not least because the parties may have always have had different visions from the start but never discussed them together. It can be compared to newlyweds never having discussed education for their yet-to-be-born children or how they should plan for their financial future. If you like it is the prenuptial agreement for companies. Without a shareholders agreement the company will be governed by its articles . There are standard formats for such articles and very often they don t fit well with the particular business to which they apply. It may be cheaper to buy a suit off-the-peg but a bespoke tailored suit is always going to outshine the more economical one. Furthermore articles are public documents which must be registered with the company registrar which means outsiders can see the operational framework for the company. Shareholders agreements are private and for the most part they oust the articles. So privacy is another advantage. A shareholder agreement can also really come to the fore in protecting minority shareholdings or relationships of equal shareholdings which have the prospect of becoming deadlocked. They can be used to prevent a majority of shareholders making decisions which may be very beneficial to them but grossly unfair to the minority or they may prevent that once common plan (which was the whole purpose of forming the company in the first place) from being shot to pieces in seconds by a show of hands in a meeting. And the real beauty of these agreements is that they can be tailor-made which means that it is not every decision that must be agreed by unanimity so that various company decisions can be given levels of importance requiring either unanimous shareholder agreement majority agreement or simply made by the directors of the company rather than the shareholders. Another very important consideration is what will happen should a shareholder leaves the company either through choice or because of ill health or death You need to think about these possibilities. Will they be allowed to sell their shares to anyone They may end up in the hands of an arch rival . Should the existing shareholders who are remaining be given first choice to buy them Should a deceased member s family relation be entitled to take ownership of the shares and from that moment to sit in on meetings when that person may have no commercial expertise How much should the shares be sold for These are all essential matters that must be ironed out and you re better to do that from the start. A company is a legal entity. That means it can sue and be sued. But in order for it to commence legal proceedings it has to decide to do so. A company can only make decisions through its board of directors or through its shareholders. It stands to reason therefore that if a shareholder complains of wrongdoing by directors the company won t sue the directors unless a majority (or all) of the shareholders agree which means that if the directors are also the majority of the shareholders it is a given that they are not going to sue themselves. A shareholder agreement resolves that issue. If other shareholders are not performing as agreed it gives a shareholder a private right to sue on the agreement it is not the company taking action it is one shareholder acting against the other(s) for breach of contract which also often gives the shareholder the right to obtain an injunction which may prevent detrimental conduct from occurring. If you are starting a new business - and you are going to go into that business with others via a company structure - I strongly recommend a shareholders agreement from the start. Yes it adds to the expense. Such agreements depending on how complex or time consuming they are to draft can be expensive but I promise that financial investment will save you from bickering and falling out and even if everything does turn ugly it will greatly reduce the costs of a future battle by simplifying the resolution of it. Olaf Blakeley is an Advocate specialising in litigation and commercial law Ifyouhavea legalquestionyou wouldliketoputto AdvocateBlakeley pleaseemail editor bailiwick publishing.com 64 CONNECT JANUARY www.bailiwickpublishing.com If disaster strikes... ...how long could your business afford to be out of action An hour a day a week If you are concerned about what you would do in the event of your premises being inaccessible but don t want the hassle or expense of running your own Business Continuity site we can help. Sure International offers a full range of disaster recovery services which includes suites your business could relocate to at a moment s notice - conveniently located totally secure and with resilient data and voice connectivity. For ultimate peace of mind when the worst happens talk to us. Contact us at business sure.com www.sure.com Jersey - Southampton 07 15 Departure Don t worry we ve got the red-eye covered Aircraft & crew based here From 52 - no hidden charges Fly better. Fly blue. Buy local. Terms and conditions apply