the executive - issue 28

• How to say “Sorry”Richard Clarke

• Dealing with Employees’ AttitudesAlfred Debattista

• The Family in BusinessMario Duca

• Social Enterprises in EuropeMark Causon

• Protect Your Data.Alan Alden

• Think Small First - SMEs in Malta and EuropeMichael Debono

• The Importance of Productivity Measurement (Part 2)David Dingli

• Are you Deteriorating?Richard Geres

• Interview with an Executive -Neville Cutajar

Jason Attard

• Interview with an Executive -Janine Houghton

Jason Attard

• IT Review: Net Support SuiteKeith Vassallo

28 - 2011

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© All rights reserved. The Publisher’s written consent must be obtained before any part of this publication may be reproduced in any form or by any means whatsoever. Opinions expressed in The Executive are not necessarily those of the editor or publishers (except where otherwise stated). Whilst every care has been taken in compiling the contents of this publication, the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. You are reminded of your right to refuse receipt of this publication by sending such requests in writing to Effective Marketing Ltd., signed by the person refusing receipt.

www.the-executive.biz The Executive 01

T hough for the relatives of the dead, such may not sweeten the bitter taste of pain, that a dictator has been ousted almost

peacefully is a joyful thing indeed. Partying a tad too early might however be cause for alarm. So much remains to be

accomplished, by people whose vested interests in the establishment of correct Change are more vague than those of the

key stakeholders, that things could well take a total turn for the worse. The thing is that in managing change, if staff doesn’t share the

organisation’s vision; if it doesn’t buy into the reason/s for change, then change will cease to exist. And it seems to me that the army

complied with the people’s wishes so as to avoid unnecessary bloodshed, giving change ample chances to scurry off; not because it voiced

the same concerns. What about the primary causes of the unrest? How is employment to be brought to the young? Many also opine

that treating change as an event rather than as a complex emotional process lends to the ignoring of the key success factors. In other

words, change must pay tribute to the instigating factors, and must be managed, and managed by the right people, for it to truly happen.

Back to our world. Managing change is the underlying theme to the Executive Event of the 18th of February; being assertive, evaluating

the value of one’s brand, and challenging mindsets are the chosen discussions. As a small note to marketing managers, sponsorship

participation is included in our 2011 packages.

Enjoy your issue.

Our Collaborators: Villa Arrigo

RichaRd claRke alfRed debattista MaRio duca

keith VassalloJanine houghtonRichaRd geRes neVille cutaJaR

IT Review

Technical Editor Joe Vella Bonnici

Publisher & EditorJason AttardPrintProgress Press

Design & LayoutEffective Marketing Ltd.

PhotographyFoto-ish the Studio

Effective Marketing Ltd. | Tel: +356 2142 4724 | Email: [email protected]

Issue No. 28 - 2011Editor’s Letter

05. How to say “Sorry”Richard Clarke

07. Dealing With Employees’ AttitudesAlfred Debattista

11. The Family in BusinessMario Duca

15. Social Enterprises in EuropeMarc Causon

21. Protect Your Data.Alan Alden

25. Think Small First - SMEs in Europe and MaltaMichael Debono

31. The Importance of Productivity Measurement (Part 2)David J. Dingli

40. Are you Deteriorating?Richard Geres

47. Q&A - Interview with an Executive - Neville CutajarJason Attard

55. Q&A - Interview with an Executive - Janine HoughtonJason Attard

63. IT Review - NetSupport SuiteKeith Vassallo

alan alden Michael debono daVid dingliMaRc causon

You deserve personalised account management

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A group of editors and members of the Maltese media were, in December, invited to Lupanara in Vittoriosa by Vodafone Malta, for a tasty traditional Christmas meal. The annual lunch not only served to get together executives from Vodafone and journalists, but it was also an apt occasion for Vodafone to celebrate its 20 years of operation in the Maltese market. Outing Chief Executive Officer Inaki Berroeta thanked those present for their support during his three-year stint at Vodafone Malta. The event was also an opportunity for new CEO Balesh Sharma to introduce himself to the press and to augur a healthy and prosperous new year to everybody there.


Vodafone Press Do - 2010

Issue No. 28 - 2011Events


Andy Gray and Richard Keyes - barely a day goes by without me seeing an article or watching their ubiquitous

faces on the newsreel. Keyes looks forlorn and sorry for his part in the sexism scandal.Of course in business, in business relationships and personally we all make mistakes.

Sometimes mistakes are good. You learn from them but the problem is somebody else probably gets hurt too. So how should you apologise and return to business as normal?Ryan Fehr and Michele Gelfand at the University of Maryland have researched this and come with the conclusion that

apologies come in three forms and that their impact varies according to the character of the victim.

Well the idea is that it depends on who you are giving the apology to - so the research involved 175 students who were measured as to how they see themselves and the rate different apologies. A further test of 171 students was undertaken.

ResultsCompensation Apology- works best with those who see themselves as “Individualistic”. (e.g. those who agree with statements like ‘I have a strong need to know how I stand in comparison to my classmates or coworkers’)

Empathy Apology- works best with those who see themselves in terms of their relations with others (e.g. they agree with statements like ‘Caring deeply about another person such as a close friend is very important to me’)

Acknowledgment ofRule Violation Apology- works best with those who see themselves as part of a larger group or collective (e.g. they agree with ‘I feel great pride when my team or work group does well’ and similar statements).

So always consider your audience when apologising and reflect their personality in the apology. In cases like Richard Keyes with a wide audience detailed apologies with multiple components are in general more likely to touch upon what is important to a victim than brief, perfunctory apologies. “Offenders should therefore offer apologies with multiple components whenever possible” the researchers said.

apology type 1 - coMpensation

“I’m sorry the product/service we gave you was not up to standard, let me replace it for you for free.”

apology type 2 - eMpathy

“I’m sorry your item did not turn up on time, it must have caused you so much worry.”

apology type 3 - acknowledgeMent of bRoken Rules

“I’m sorry we missed the fraud during the audit; we pride ourselves on our professionalism and thoroughness.”

So which works best and in which situation?

Richard Clarke was the International Director for Europe’s largest financial training company before going on to open his own successful accountancy training company with branches in Malta, Ireland and online, the Richard Clarke Academy. Having 10 years full time lecturing experience, specialising in Financial Reporting and Management Accounting, he also researched neurology and social economics and their affect on the learning process giving his lectures an extra dimension. He co-devised and ran train the trainer courses for ACCA in Europe, Africa and the Far East. Richard is writing innovative Financial training books which he hopes will break the death grip of tired, dull textbooks.

How to say “Sorry”Richard Clarke

from “The Prodigal Son in Modern Life” (1882), by James Jacques Joseph Tissot

Issue No. 28 - 2011Personal Management

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D ealing with employee complaints is a common and usually frustrating facet of management.

One bad apple can spoil the whole bunch the saying goes: once an employee suffers a perceived grievance soon the entire unit knows about it, sides are chosen and moaning becomes the norm. This may then lead to loss of productivity within the entire unit. If employee complaints are not handled well, one risks creating resentment, low morale, low productivity and possibly increased labour turnover.

There are a number of ways how a manager can effectively deal with employee complaints before a situation gets out of hand.Firstly, if you think that employees are going to automatically come to you when they have a complaint you’d better think twice. Many times they won’t. One must be alert to what is going on and a good manager is one who is a few steps ahead of the game, to head off situations at their earliest stages.Being alert involves more than keeping your ears open. It involves keeping your eyes open as well, taking note of what is going on. This means that you must be able to recognise the warning signals. Employees’ body language and other behaviours should serve as a good first signal that something is up. For example, when an employee starts avoiding making eye contact with you or when the atmosphere in the room suddenly changes when you enter u n e x p e c t e d l y. Other signs that a bad situation may be developing is when employees start missing deadlines or absenteeism and tardiness is on the increase.

Secondly, apart from these signs, managers should be

aware of what might constitute a complaint in the minds of employees, based on the policies and procedures adopted by the organisation. Mastering the responsibility of listening to employees and providing opportunities for them to communicate with their managers, may help in improving the efficiency and effectiveness of the work group, by spotting those problems as they are developing and taking those steps necessary to correct them before they spread. One will be far better off if he/she confronts an employee (or employees) early than if one waits unit the situation deteriorates further. Adopting an “if I ignore it, it will go away” attitude will surely not solve the problem.

The way one reacts to a complaint immediately sets a tone. Managers often discourage employees from telling them what’s wrong by subtle threats or outright punishment. Sometimes all that employees would want is the opportunity to talk, and someone who really listens.While one might not agree with their viewpoints, it is important that a sincere wi l l ingness to listen

Dealing with Employees’AttitudesAlfred Debattista

objectively to what employees have to say is shown. Making quick judgments will not help much: the objective is to really get to know what the problem is and also to be on the look out to what is not being said by the employee or is having difficulty in saying. Only then, once enough information is gathered, can one move to the next step and make the changes necessary.

One other important point which should always be kept in mind is that once a decision

has been taken and communicated, the manager has to keep his word and do it in a timely manner. This way, employees will come to you, knowing that they can rely on you and will not spend their time complaining to each other.

Not all complaints carry the same weight. Furthermore, ignoring them altogether can only cause damage. Employee complaints are just as valuable as customer complaints: they definitely should not be dismissed, in the same way that customer complaints must never be dismissed.

Alfred Debattista is a banker by profession as well as a freelance management training

consultant. He is a part-time lecturer at the institute of Financial Services and the University of Malta, focusing on Managing Organisations.

• Pay is the number one area in which employees seek change.

• Employees are concerned particularly with pay differential between grades.

• Micromanaging is also a cause for complaints.

• Employees believe the compensation system should place greater emphasis on merit and contribution.

• Employees find pay systems in which all employees receive the same increase annually, demoralising.

• HR must be responsive to employee concerns.

• Responsiveness to employee needs is crucial.

• Employees want the perception that each employee is treated equally.

• Employees want face-to-face communication time.

• Employees want a clean, organised environment.

Issue No. 28 - 2011People Management

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T he conception that family businesses move from rags to riches and back to shirtsleeves

within two to three generations or that the first generation develops the business the second one consolidate and further develop it and the third or fourth burns everything away, is very strong and in many instances is very true. But why does it have to be this way? What are the issues that allow this cycle of events to take hold?

From a number of empirical studies and surveys undertaken, one of the main causes points to the lack of governance structures within the family. In general, it is found that in one way or another, governance structures exist within the business framework but are totally conspicuous by their absence from the family side for families in business.


decision, it can effectively discuss conflict issues and come to an acceptable agreement.

Different families take alternative routes in creating governance structures but in most cases this will involve the use of specialised family business consultants. At the same time families must have something in common, the ‘glue’ that helps them in working together.

The family council is perhaps one of the most important parts of the governance structure process within family businesses. The family culture will determine the formal make-up of the council. In smaller family businesses all adult family members would serve on the council, whereas in larger families a representative process is adopted.The purpose of the family council is to develop and address the family’s personal and family issues in relation to the business and between the family members. This would include the discussion of amongst others, decisions on investment and business issues, conflict resolution, role of spouses, employment requirements for family members in the business, entry and exit strategies, all this in a formal manner.

conclusion If history is any guide, it results that very few families are investing the necessary resources to develop and sustain effective governance processes within the family. However, governance structures play an invaluable role in helping the families overcome conflicts and disagreements. Thus, establishing a family office will be enabling and assisting the family in successfully passing on the family’s legacies to future generations.

Such a structure is necessary wherein the family could learn how to work together, preserve its wealth, have a framework on how decisions are taken, resolve conflict and be able to bring along the next generation. Such a structure is the Family Office.

Initially family offices had been set up by very wealthy families to provide “conflict free” investment advice and the preservation of the family wealth, both monetary and business assets. Perhaps because of this investment focus, the concept of family offices has mainly been taken over by legal and financial concerns and such family offices have provided little or no resources for creating and maintaining effective governance structures within the family. And as has been proven many a time over, the downfall of a family in business is mainly related to lack of governance within the family and not due to lack of governance within the business.

Through governance, ground rules are established. Governance in the family and family office setting can be designed to provide accountability and transparency, manage conflict, provide representation for the different family lines and offer a forum in which the family can make decisions and more importantly, be a means for the reduction of conflict. The creation of a family office is therefore a means whereby the family, although it might not agree with every

The Family in BusinessMario Duca

The “Sceptre” under full sail. The 1957 yacht was one of the 500 boats built by the family business Alexander Robertson and Sons during its glorious 104-year history.

Effective governance within the family for families in business will help ensure the survival of the family wealth. But unfortunately very few families are investing time and resources to develop governance systems that will safeguard the family legacy to future generations

For further information please contact Mario Duca, FBS2M Family Business Solutions, email: [email protected].

the ‘glue’ that facilitates faMily woRk is found in the cReation of:

• A shared vision

• The structures to achieve the vision,

• The process for representation, decision making and conflict resolution.

The formal family structure to execute the above is undertaken through the setting up of:

(1) a family assemble and(2) a family council.

Issue No. 28 - 2011Family Planning

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T he foundations for European social enterprises were laid in the 19th Century, with the establishment

of the first cooperatives. Prior to this the social sector relied on charity from the Church or monarchy. The social enterprise made its first appearance in Italy in the late 1980s, where special status was given to “social co-operatives”. These were created to respond to needs which were unmet or inadequately met by public services caused by changing demographics. The initiatives were of two types: the first providing social, heath and educational services, the second work integration for the disadvantaged. Unlike older co-operatives which only served its members’ interests, they served a much wider community. By the mid-1990s, the idea of the social enterprise had begun to be recognised elsewhere in Europe, although to lesser degree. At the same time, the concept was also developing in the US, with several Ivy League colleges launching initiatives, although by their definition the social enterprise was more focused on market-oriented activities which happened to have a social goal.

Nowadays in Europe, the concept of the social enterprise is still not equally recognised everywhere, particularly in terms of legal framework.It is even poorly understood in many countries, lacking any official definition. Nevertheless, social enterprise-like initiatives exist in some form in almost every Member State.

Different countries apply different models, and different legal names, for example, the UK’s ‘Community Interest Company’, Portugal’s ‘Social Solidarity Co-operative’, or Spain’s ‘Social Initiative Co-operative’. Each country tends also to define social enterprises in slightly different terms, this definition usually being drawn from studies undertaken in the respective country.

Malta’s own version of this type of initiative is the ‘Social Welfare-Oriented NGO’ (SWNGO). SWNGO initiatives include human health activities, social work activities, and support and pressure activities, although there is rising interest in the third sector in general in Malta.

Social Enterprises in EuropeMark Causon

• Social enterprises are playing an increasingly important role in the economy of the European Union. T he European Commission supports social enterprises through a number of dif ferent schemes:

• T he Small Business Act was adopted in June 2008, with an aim to support SMEs, amongst them social enterprises. It is to be reviewed in December 2010.

• European Agenda for Entrepreneurship promotes entrepreneurship in social sectors.

• T he Communications on Social Ser vices and Health Ser vices allow the EU to assess i ts social ser vices framework and make improvements accordingly.

• The directives on public procurement “provide, under certain conditions, derogations favouring social enterprises”.

• A social enterprise may be the result of a Public-Private Partnership (PPP), with the private partner providing funding and bearing certain risks on behalf of the public partner.

• EU countries have the right to award State aids to small social enterprises.

• Concessions: EU policy ensures non-discrimination, equali ty of treatment and transparency in cases where the supply of economic act ivi t ies is entrusted to a third party by a public authori ty.

• T he European Social Fund (ESF) plays a signif icant role in boost ing employment in the EU, notably through promoting the anti-exclusion, pro-inte g ration aspect of social enterprise.

• Tax rules: Member States reser ve the right to g rant corporate revenue tax exemptions to social enterprises as long as these do not contradict Community law on State aids.

Issue No. 28 - 2011International Business

In business terms when we talk of an enterprise we focus our minds on the general trend of business where one is involved in production, trading or services providers, but a relatively new type of business entrepreneurship is steadily gaining momentum and this is mainly due to various forces and changes in our economies both locally and internationally.

When one mentions social enterprises, the first reaction one would get would be the question of ‘is it a profit making company?’ One needs to understand the concept that the social aspect being integrated in business is a relatively recent concept, and although it is difficult to categorise, social enterprises – sometimes called “social economy enterprises” – are generally defined as initiatives which combine the entrepreneurial spirit of the private sector with the social purpose of the public sector. In other words, it is the application of business models to social causes. They differ from standard private companies in that they focus on generating profit for social goals rather than maximising shareholder value.


theRefoRe what aRe social enteRpRise businesses? The most common factor in the formation of this type of business is through an

initiative launched by a group of citizens, where the decision making power are not based on capital ownership and there would be a limited profit distribution. It would

In Central and Eastern Europe, social enterprises are taking the form of foundations, associations or co-operatives rather than private companies.

In Northern and Central Europe, social enterprises tend to be private limited companies or joint stock companies.

In Southern and Eastern Europe, there is a dominance of initiatives targeting children and elderly.

In Eastern Europe, the large gap left in the voluntary sector caused by former communist

rule is being filled up.

Social Enterprises in Europe

sector to fill the gap left between the former state economy and the new market economy. Here in Malta, the difficulty is financing the initiatives as banks do not currently guarantee loans to SWNGOs. As a result they are unable to participate in EU projects which would bring in more funding. Furthermore, SWNGOs also currently pay full, non-refundable VAT. In fact, taxation is a problem in several European countries where no special legal framework is in place for social enterprises. Other issues include a lack of volunteers or skilled workers and the fact that varying definitions of exactly what constitutes a social enterprise makes it difficult to conduct research and collate statistics, particularly transnationally.

the futuRe of social enteRpRises

Although there remain a few barriers, overall the future looks bright for social enterprises. The contribution that these initiatives make to society is being recognised and celebrated, and several countries now hold an annual Social Enterprise Awards ceremony to honour certain new initiatives. The European Union continues to support and promote social enterprise activities, and if these go on developing at the same rate as in recent years, it seems as though social enterprises will remain an increasingly important part of the new social economy.

in Europe is by far the work integration social enterprise (WISE). These initiatives create job opportunities to reintegrate the disadvantaged and long-term unemployed into the labour market. In many countries, including Finland, Poland, Sweden and Lithuania, social enterprises and WISEs are considered one and the same. Similar public programmes created specifically for work integration, exist in many other European countries, such as France, Portugal, Finland, Belgium, Spain and Ireland. In Malta, WISE fall into the category of social co-operatives and are governed to some extent by the co-operatives legislation and not by the Civil code and the Companies Act. One famous example of a successful WISE is The Big Issue in the UK, which employs the homeless to sell magazines, the profit from the sales going directly to the sellers themselves.

obstacles still to oVeRcoMe

Although social enterprise has developed significantly in most parts of Europe, there are a few problems still to address. In Eastern Europe, for example, there is a need to establish framework for a third


Mark Causon has worked as coordinator and project manager on various projects in Ireland, Spain, Brussels, Germany, France, Sweden and Norway, and is also a visiting lecturer and tutor at Master’s level at several European universities.At present Mark is the manager of the Europe Direct Mosta office of the European Commission DG Communications office. He provides consultancy services on EU funding calls, project selection, application and project management. Mark may be contacted on tel. 79232635 or [email protected].

involve a participatory nature, which involves the persons affected by the activity, with an explicit aim to benefit the community. However it is still an enterprise where a continuous activity of producing goods and/ or selling services is conducted. Social enterprises have a high degree of autonomy and due to the fact that they too are operating businesses they have a significant level of economic risk.

so what does a social enteRpRise look like?Social enterprise can cover many different sectors, although most activity is in the fields of work integration, personal services and local development of disadvantaged areas. As an example, in Sweden and France, a great number of initiatives cater for childcare, whereas social enterprises in Ireland are generally geared towards local development.

Social enterprises can be entirely new organisms, created as part of the social economy, or indeed simply a new entrepreneurial spirit for existing third sector initiatives. Social enterprises tend to be small in size, with fewer than 50 employees, and act on a local scale. Although the organisation of such initiatives varies, they tend to rely heavily on volunteers, more so in some countries than others. In Denmark, Malta, Estonia, Belgium and Bulgaria, for example, social enterprises can be almost entirely run by volunteers, although in Finland and Sweden, social enterprises do not employ volunteers. As for funding, this may be obtained from various sources including public funds (often in the form of wage subsidies), EU grants, local authorities, donations, and income from sale of products and services (as high as 86% in the UK).

the wiseThe dominant type of social enterprise

All over the world – inNorth America, Australia, Africa, India, and

of course, Europe – there is growing interest in thethird sector and the number of social enterprises is rising steadily.

Social Enterprises in Europe

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T here are certain key elements to consider when addressing how safely your data is managed

and this includes looking into how well your management understand any information security issues and carrying out information security planning prior to the implementation of new technologies. You should also look at the integration between business and information security and the alignment of information security with your organisation’s objectives.

what is data?Before we can protect something we need to understand where it comes from, where it is stored, processed, who needs it, what it is used for and where it goes to; moreover, we need to be fully aware of all the data we process in any form.Bits and pieces of Data put together creates information that is critical for the business. We need to understand the main elements of information to be protected and the threats against our information. Anti-malware software and practices; and

back-up systems and strategies, are two common controls.

We need to protect the confidentiality, integrity and availability of the information we process, store and transmit. The three types of controls are:

• Preventive. Policies, procedures, user awareness, physical and logical access, validation controls on input, firewalls, hardening of systems, anti-malware, encryption, system updates, locks, iron bars, security guards.

• Detective. CCTV, anti-malware, IDS and IPS, audit trails, check lists, audits, burglar alarms & fire detection.

• Corrective. DRP and BCP, disciplinary action, insurance, back-up procedures, fire extinguishers.

classification of data

Does all our data require the same levels of protection? Protecting data can be

Protect Your Data.Alan Alden

The discussion strives to highlight the importance of data and information, and approaches to securing such data. It also looks at the risks facing management should they not enforce mitigation.

otheR key eleMents to data safety aRe:

• Executive and line management ownership and accountability for implementing,

• Monitoring and reporting on information security,

• Appropriate employee education and awareness on information asset protection,

• Consistent enforcement of information security policies and standards,

• Placement of information security within the organisation hierarchy, and

• Budget for information security strategy and tactical plan

Issue No. 28 - 2011IT Management

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expensive therefore we need to identify which data needs the most protection to better utilise our scarce resources on that data requiring the most security.


We must also be sure that we only process data for which we have a business need. The data being stored, processed and transmitted therefore must be analysed, as must also be its importance and confidentiality, integrity and availability requirements.

Classify data accordingly. As an example, it is crucial that Secret, Confidential, Private, Public data elements are classified and stored accordingly.

standaRds

Information security has been a major concern for management since electronic data, networks, email, and especially the internet have become common practice. There are approved standards, systems and frameworks to assist management to approach information security in a planned manner. IT and/or IS Governance aids include ISO 27001 – Information Security Management System, Payment Card Industry Data Security Standards (PCI DSS), BS25999 – Business Continuity Management, and COBIT – Control Objectives for Information and Related Technologies.

conclusion

Why protect our data? Apart from business risks there are statutory and contractual risks that a business faces. Heavy fines, damage to image/reputation and even prison sentences are risks companies face. The absolute minimum controls expected are anti-malware, back-ups and access controls.

Data is critical for all businesses and it is constantly at risk from internal and external threats. It is the management’s responsibility to protect data and this responsibility should be taken extremely seriously as the loss, disclosure, or theft of data may be detrimental to the business at stake. You should always measure the cost of safeguarding your data against what the damage will ultimately cost the company.

the top 10 thReats to infoRMation aRe:

• Malware which Malicious software such

as viruses, worms and Trojans. IBM reported that during 2009’s first half, malicious links increased by 508%

• Malicious Insiders

• Exploited Vulnerabilities.

• Employee errors and omissions

• Mobile Devices

• Social Networking (e.g. Facebook)

• Social Engineering (extracting information by decepting people)

• Zero-Day Exploits

(exploiting application vulnerabilities)

• Cloud Computing

• Cyber Espionage and Terrorism.

This contribution has been extracted from a discussion held by Mr. Alan Alden during the business event of the 26th of October organised by iManage, in collaboration with Newtech Ltd.Alan is a Certified Information Systems Auditor (CISA), Certified Information Systems Security Professional, and an Associate of the Chartered Institute of Bankers (ACIB).Alan may be contacted on 2759 5000 or at [email protected].

Protect Your Data.

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B igger is not always better. During the energy crisis of the 1970s, British

economist E.F. Schumacher wrote that “small is beautiful”. So just how beautiful is Europe’s small business sector?

facts & figuRes

Small and medium-sized enterprises are defined by the European Commission as those having fewer than 250 employees and an annual turnover of up to €50 million, or a balance sheet total of no more than €43 million. These businesses are extremely important to the economy of the European Union, with around ninety-nine percent of all enterprises in Europe being classed as SMEs. In fact, nine out of ten European SMEs are micro-enterprises, that is, enterprises employing nine persons or fewer. Europe’s SMEs – which number between 20 and 23 million – account for 75m jobs. They provide two out of three jobs in the private sector and contribute to more than half of the total value-added created by businesses in the EU.

appaRent tRends in euRope:sMes Vs. laRge enteRpRises In the EU SMEs are heavily oriented towards the service sector, compared to international trade, where manufacturing significantly outweighs services.

SMEs may employ up to 250 persons, yet the typical European SME might be somewhat smaller than you imagine. SMEs in the EU-27 employed, on average, 4.3 persons in 2005. This figure varies considerably, however, between Member States, from up to 12 persons per SME inSlovakia and upwards of 7 in Estonia, Ireland, Latvia and Germany, to fewer than 3 in the Czech Republic (2004) or Greece. The relative importance of SMEs in employment also varies across the EU, with SMEs representing roughly half of employment in Slovakia, but just over four fifths in Italy (2003

Think Small First -SMEs in Europe and Malta

Michael Debono

data). The European average is approximately two thirds.

labouR pRoductiVityLarge enterprises generally contribute a higher share of sectoral value added than employment, while the reverse is true for micro-enterprises. This indicates a relatively high apparent labour productivity (value added per person employed) among large enterprises and a low level among micro enterprises where apparent labour productivity increased across the size classes shown for most of the activities within the EU non-financial business economy in 2007. For mining and quarrying, electricity, gas and steam supply, water supply, as well as for water transport, micro enterprises had the highest apparent labour productivity among the size classes shown. The only activity where small enterprises recorded the highest apparent labour productivity was other business activities, while apparent labour productivity peaked among medium-sized enterprises for air transport and real estate.

Value addedOverall, of the four class sizes of enterprise, it is the large (250+ employees) which generate the most value added. In certain sectors, however, the contribution of SMEs is higher. In 2007, SMEs

accounted for a relatively large proportion of value added in real estate and construction, in excess

of 80% in both cases. Among industrial activities, the highest contributions of SMEs to value added were for fabricated metal products (2006 data), and the manufacture of wood and wood products. SMEs’ contribution in value added terms was less than 10% for tobacco manufacturing as well as for post and telecommunications. Taking into account all sectors, the

“Think small first. But never lose sight of the bigger picture.”

Issue No. 28 - 2011International Business

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Issue No. 28 - 2011Risk Management

www.the-executive.biz22 The Executive


share of value added within the non-financial business economy coming from SMEs varies from country to country, lowest in Slovakia and highest in Italy, with an EU average of 57.6% in 2005.

sMes in MaltaSo how do Malta’s SMEs compare to the European norm? Whereas Europe as a whole relies heavily on SMEs, Malta – as one of the smallest economies in the EU – does so to an even greater extent. The contribution of micro-firms to employment is in Malta (40%) higher than the European average (30%). As a consequence the contribution of the total SME sector to employment (77%) is in Malta comparatively higher than in the EU (67%). However, whilst Malta’s school system has received praise for encouraging an attitude of entrepreneurship, only 5% of former businesses owners still run an active business or have started a new one, the EU average being 23%.

the futuRe of sMes and the iMpoRtance of inteRnationalisation

Currently, European SMEs still depend to a great extent on their domestic markets

Think Small First - SMEs in Europe

• TheSmallBuSineSSacTforeurope is the EU’s flagship policy on SMEs. First adopted in June 2008, the Act “reflects the Commission’s political will to recognise the central role of SMEs in the EU economy”. It aims to cultivate the growth of SMEs in Europe, setting out a series of ten principles which guide the implementation of policy at EU and Member State level. These cover areas such as finance, administration, innovation and entrepreneurship.

• The European Social Fund (ESF) has a very wide scope, but consistently contributes significantly to employment in the EU. Support for SMEs is a Europe 2020 priority.

• The Observatory of European SMEs was established by the European Commission in 1992 to improve the monitoring of the economic performance of SMEs in Europe. The Observatory’s reports provide information on SMEs to policy-makers, researchers, economists and SMEs themselves. The last edition was published in 2007; in 2008, however, the Observatory of European SMEs was replaced by the SME Performance Review, which monitors the implementation of the Small Business Act.

• The Enterprise Europe Network provides a number of services to SMEs and entrepreneurs, including practical information on market opportunities, EU legislation, or funding opportunities; support for research and innovation, and; identification of potential business partners across Europe. The network comprises approximately 600 partners in 44 countries, employing around 4000 experienced staff and helping to increase the competitiveness of EU businesses.

• Launched in 2009 and financed under the Competitiveness and Innovation Framework Programme (CIP), the European SME Week is one of the measures implementing Principle 1 of the Small Business Act:”the EU and Member States should create an environment within which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded”. Events all over Europe provide information about SMEsand encourage and recognise entrepreneurship. The EU is committed to cutting administrative burden by 25% by 2012.

despite the opportunities brought about by the single market and globalisation in general. The last Observatory Report (2007) uncovered several hindrances to European SME activity and growth. Besides the usual bureaucratic hurdles, it revealed other issues preventing many SMEs from doing business internationally. It found, for example, that SMEs in Europe (89%) are much more dependent on the regional labour market than large enterprises (77%). A mere 8% of SMEs The Small Business Act for Europe is the EU’s flagship policy

on SMEs. First adopted in June 2008, the Act “reflects the Commission’s political will to recognise the central role of SMEs in the EU economy”. It aims to cultivate the growth of SMEs in Europe, setting out a series of ten principles which guide the implementation of policy at EU and Member State level. These cover areas such as finance, administration, innovation and entrepreneurship. The European Social Fund (ESF) has a very wide scope, but consistently contributes significantly to employment in the EU. Support for SMEs is a Europe 2020 priority. The Observatory of European SMEs was established by the European Commission in 1992 to improve the monitoring of the economic performance of SMEs in Europe. The Observatory’s reports provide information on SMEs to policy-makers, researchers, economists and SMEs themselves. The last edition was published in 2007; in 2008, however, the Observatory of European SMEs was replaced by the SME Performance Review, which monitors the implementation of the Small Business Act. The Enterprise Europe Network provides a number of services to SMEs and entrepreneurs, including practical information on market opportunities, EU legislation, or funding opportunities; support for research and innovation, and; identification of potential business

partners across Europe. The network comprises approximately 600 partners in 44 countries, employing around 4000 experienced staff and helping to increase the competitiveness of EU businesses. Launched in 2009 and financed under the Competitiveness and Innovation Framework Programme (CIP), the European SME Week is one of the measures

eu policy suppoRting sMes

European Commission policy regarding SMEs is mainly concentrated in five priority areas,namely:

• promoting entrepreneurship and skills;

• improving SMEs’ access to markets;

• cutting red tape;

• improving SMEs’ growth potential

• strengthening dialogue and consultation with SME stakeholders.

implementing Principle 1 of the Small Business Act:”the EU and Member States should create an environment within which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded”. Events all over Europe provide information about SMEs and encourage and recognise entrepreneurship. The EU is committed to cutting administrative burden by 25% by 2012. interviewed reported turnover from exports, which is significantly lower than the respective share of larger enterprises (28%). The prime obstacle encountered by SMEs wanting to export is a lack of knowledge of foreign markets (mentioned by 13% of exporting SMEs), followed by import tariffs in destination countries and a lack of capital (both 9%). Furthermore, only 5% of EU SMEs reported that they have subsidiaries or joint ventures abroad. It is clear that small and medium-sized enterprises play an incredibly important role in the EU economy. Nevertheless, although the EU recognises its high level of dependency on SMEs, if its economy is to continue to grow and, in particular, stay competitive, its policy must evolve to encourage European SMEs’ access to foreign markets. As for individual businesses, there is already a wealth of support available for SMEs as provided by the European Union. SMEs must take note: “think small first”, but never lose sight of the bigger picture.

References: available on request.


Michael Debono is the founder and CEO of DConsulta Limited, a boutique consultancy firm offering a range of services revolving around EU grants, business development and finance. Michael is involved in People Solutions, a recruitment and temping agency that also offers training services. Michael can be contacted on 2747-4414 or at [email protected]

Think Small First - SMEs in Europe

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MeasuReMent of labouR pRoductiVity, based on gRoss output.

Productivity of Labour =

Quantity index of gross outPut

Quantity index of Labour inPut

This measurement traces the labour requirements per unit of output, showing the time profile of how productively labour is being used to generate gross profit. It reflects the change in the input co-efficient of labour by industry and can thus help in the assessment of labour requirement by industry. Its main advantage is the ease of its measurement and readability as the gross output measures only price indices on gross output.However, it is a partial productivity measure and any change in it reflects the joint influence of a change in capital, intermediate inputs, as well as technical, organisational and efficiency change, the influence of economies of scale, varying degrees of capacity utilisation and measurement errors. In addition, this gross measure is also influenced by the ratio of intermediate inputs to labour changes such as outsourcing which would increase it. Such an effect would not be reflecting a change in workforce performance, or a shift in technology or efficiency. Since labour productivity measures reflect the combined effects of changes in capital inputs, intermediate inputs and overall


Managers are realising that among all organisational resources, the human capital is perhaps their

most important competitive advantage, hence Human Resource (HR) productivity measurement is an absolute necessity for competitive performance. This is true for variety of reasons, the largest of which is that for most firms nearly 60 percent of all variable costs are people costs, including salaries, benefits

• labour productivity only partially reflects productivity of labour in terms of the personal capacity of workers or the intensity of their effort.

• The principle drivers of productivity improvement are product, process, service and organisational innovations, and the upgrading of human and physical capital.

• Overall, research has also indicated that productivity is often boosted to a greater extent by improvements in internal efficiency rather than by the capture of market share from competitors.

• Although it is conceptually possible to isolate different types of efficiency changes, technical changes and economies of scale, this remains a difficult task in practice.

The Importance of Productivity Measurement (Part 2)David J. Dingli

and HR administrative costs. The success of many organisations is highly dependent on their intellectual capital and how the organisation utilises it. As an intangible asset, measurement of HR productivity is complex.

eMployee pRoductiVity MeasuReMent

When the human resource is measured as labour, its respective productivity is measured in the following ways;

Issue No. 28 - 2011Operations Management

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productivity, they do not leave out any direct effects of technical change.

For all the above mentioned reasons, labour productivity only partially reflects productivity of labour in terms of the personal capacity of workers or the intensity of their effort. It is easily misinterpreted as technical change or as the productivity of the individuals in the labour force.

MeasuReMent of labouR pRoductiVity based on Value added

Productivity of Labour =

Quantity index of vaLue added

Quantity index of Labour inPut

This measure shows the time profile of how productively labour is used to generate value added. However, just as the above mentioned measure (based on gross output) output, is also influenced by all the technical, organisational and all the above mentioned factors. The only difference is that this measure is less influenced by intermediate inputs and labour. Thus, it has similar advantages and limitations as mentioned above.

causes of low pRoductiVity

For employee productivity; poor leadership and the lack of training and development are perhaps the principal barriers to productivity.

High stress levels have also been found to be a major challenge.

Lack of awareness of productivity problems with its lack of associated cost-benefit analysis, added with negative managerial attitudes resulting from risk aversion and uncertainty.

Financial and managerial resource constraints. Many small to medium enterprises do not have the financial and managerial resources and skills to implement change successfully.

Business economics; rational economic reasoning makes it difficult to justify investment in risky, uncertain and seemingly long term strategic ventures. This is especially so where the cost is high and the benefits difficult to quantify.

Also note: - the institutional setting within which organisational changes take place determined by the level of flexibility in product markets to expose managers to competitive pressure, strong corporate governance and flexibility in labour markets

From all the above factors, it is evident that productivity varies greatly among and within organisations, and almost always, there is a lot of room for improvement in performance.

The Importance of Productivity Measurement (PArt 2)

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37,000 workers, showed that the preferred measure among them is labour cost per unit of output, which focuses on production costs. Smaller organisations have been found to be less likely to measure productivity and even when they do it is more likely to be informal rather than formal. Propensity to measure productivity formally increases with the size of the organisation.

unsettled issues on pRoductiVity

There is still controversy on the relationship between productivity measurement and its importance with regard to the following factors;

• TechnologyA frequently stated objective of measuring productivity growth is to trace technological change yet in spite of the frequent explicit and implicit association of productivity measures with technical change, the link is not straightforward.

• EfficiencyAnother important yet debatable purpose for productivity measurement is assessment of efficiency. Full efficiency means that the production

Other frequently used measures are labour cost per unit of output, and time taken per employee per task.A survey by Personneltoday.com of 41 organisations, which together employ

soMe of the issues hR Must be able to addRess foR ManageRs

include:

1. How to motivate employees to increase their output

2. How to provide employees challenge and an environment that reduces the risk of top performer turnover

3. How to assemble a workforce capable of increasing innovation and product quality at industry “disrupting” levels

4. How to increase customer satisfaction throughout the organisation

5. How to increase the percentage of projects that are completed on time and under budget.

paRtial and MultifactoR pRoductiVity MeasuReMents

Partial measures of productivity are concerned with only one input variable, examples of which are units of output per (a) labour hour; (b) machine hour; (c) Euro invested: (d) kilowatt-hour, (e) square metre of retail space.

Productivity =no. of tones of aLuminium Produced

no. of units of Power used for Production

orProductivity =

Production vaLue of the metaL Produced (€)Purchased energy (€)

Productivity =

Production vaLue of outPut Produced (€)Labour cost(€) + Purchased energy

(€) + raw materiaL cost(€) +…

Its advantage is that it provides a broader measure of productivity. More data is required for such measures.



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Poor leadership and the lack of training and development are

perhaps the principal barriers to productivity.

process has no technical or organisational inefficiencies and has achieved the maximum amount of output that is physically achievable with current technology, and given a fixed amount of inputs. Technical efficiency gains thus are a movement towards best practice. However, not every form of technical efficiency makes economic sense and this is captured in the notion of allocative efficiency, which implies profit maximisation behaviour on the side of the firm.

• Real Cost SavingsAlthough it is conceptually possible to isolate different types of efficiency changes, technical changes and economies of scale, this remains a difficult task in practice. Productivity is typically measured residually and this residual captures not only the above mentioned factors, but also changes in capacity utilisation, learning by doing and measurement errors of all kinds. This myriad of sources behind productivity growth is what is referred to as real cost savings.

• Benchmarking production processesThe use of comparative productivity measures for specific production processes is very useful in identifying f a c t o r y - t o - f a c t o r y inefficiencies. However, it has a major disadvantage that the resulting productivity measures are difficult to combine or aggregate.

conclusion to paRt 2In spite of all the above mentioned challenges in the use and analysis of productivity measurement, it is still considered as an essential element in the assessment of the efficiency of resource utilisation and as an important measure of economic performance.

References: available upon request

Dr. David J. Dingli is the managing consultant of Resource Productivity Consulting Services, a management consulting firm specialising in strategic planning, operational efficiency improvements and management development & training. (www.rpcsmalta.com). He is also an Assistant Professor with Maastricht School of Management, The Netherlands and has lectured at MBA level in 25 countries throughout Asia, Africa, South America and Europe. He may be contacted at: [email protected]; or Tel: (+356) 99430196.


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Increasing sales or brand perception or introducing a new product can succeed through the careful integration of a carefully selected promotional product as an informational medium. Especially when the

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select a supplier that can offer a wide

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custom-made for your company.

cReating a lasting iMpRession

Playcraft Promotional Items is the only company in Malta that offers such a diverse

selection of in-house options, tailor-made to suit specific requirements, and tastefully branded to suit your corporate identity. We are equipped to produce a diverse range of products that stand out, whether it is one item or a variety of different items in a scheme.

Our name has become synonymous with choice, quality, value and reliability, a reputation gained as a result of over 12 years of experience in the provision of branded gifts Our business gifts are used to help promote our clients’ products and services at exhibitions, trade shows, conferences, product launches, corporate entertaining, anniversaries and special events.

Our customers include Malta’s largest corporate and government organisations, the nation’s biggest retailers, thriving small and medium sized businesses, and sports and social clubs. We enable every organisation to benefit from our unrivalled pricing, unparalleled expertise and industry-leading customer service.

We remain market-leaders due to the extensive range of value-added promotional merchandise that we offer. Our clients return to us because we help them make the most of their investment every single time. No matter what your business is, we want to make sure that you have the right marketing tools to assist your growth.

D ay after day we see posters, billboards and special offers sent out from thousands of brands

across the country. All this clutter can turn into white noise in the mind of the customer and lead them, inevitably, to ignore the message. Promotion does not end with quirky television clips or an eye-catching print advert with an offer to win a cruise; it really comes to life through the use of exciting promotional products, which can get your brand noticed above the noise.

Rather than falling into the background with television commercials and outdoor boards, your message can stay fresh and relevant with promotional products. They are best used as part of the marketing mix. Promotion, as a tactic in a marketing campaign, communicates important information to the public and helps achieve the overall objectives of the entire campaign. Promotion can include anything from personal selling and a sales force to traditional advertising and public relations. Within all these sub categories are plenty of opportunities to incorporate a strong promotional product programme.

The majority of companies today use promotional items at some time of the year to improve their reputation in the marketplace. Things like a daily planner, coffee mug, team cap, pen, key chain and so on are all useful as promotional merchandises. The best result you will achieve, however, is when promotional products are innovatively applied in manners which affect the activities of target viewers. The choice of gift is important because the recipient’s perception can affect brand reputation. Giving a gift that is perceived as cheap, unusable, or ordinary will not enhance your company’s profile. The trick is thus to generate a positive association between promotional item and brand, and that comes from making the right choice by understanding consumer behaviour.

tapping into consuMeRs’ Minds

Evaluating and influencing consumer behaviour is foremost in determining which marketing efforts will be used and when - the essentials of a successful marketing campaign. And by understanding what can impact buying habits, businesses are able to advertise products and services in ways that

catch theattention ofthe targetmarket andmotivate potential clients to purchase.

Consumers adjust purchasing behaviour based on their individual needs and interpersonal factors. In order to understand these influences, companies try to ascertain what happens inside consumers’ minds and to identify physical and social exterior influences on purchase decisions. One of the key elements that influences consumer behaviour is the self-image of the consumer. Personality traits and characteristics are important to establish how consumers meet their needs.

Pragmatists will buy what is practical or useful, and they make purchases based more on quality and durability than on physical beauty. The aesthetically inclined consumer, on the other hand, is drawn to objects that project symmetry, harmony, and beauty. Intellectuals are seekers of knowledge and truth and tend to be more critical. Politically motivated people seek out products and services that will enhance their social position. And, people who are more social can best be motivated by appealing to their fondness for humanity with advertising that suggests empathy, kindness, and nurturing behaviour. These different consumer profiles also affect the choice of branded promotional items your company should give to target markets.

Bertrand Magro is the Managing Director of Playcraft Promotional Items and may be contacted on (+356) 2125 7042 or at [email protected].


BertrandMagro

Issue No. 28 - 2011Company Highlight

Issue No. 28 - 2011Personal Management

Are You Deteriorating?

Y ou’re in the midst of your typical life, but slowly things begin to glaze over. Your reflexes aren’t quite as sharp.

You’re not quite as observant. Your memory isn’t quite what

it used to be. Tasks that used to be simple, tasks

such as getting up on a ladder to change

a light bulb, lovingly lifting

a child into the air, or

carrying . a

Richard Geres


suitcase, seem to

come with a hint of struggle.

The struggle increases revealing that your strength

and your balance are compromised. Sure, you can walk with the suitcase, carry the child, and keep the lights in your house well lit, but each such experience requires greater focus and brings rapid fatigue. Lifting objects puts a strain on your low back, as does getting into your car, and at times getting out of bed. The stiff neck, the tennis elbow, and the knee pain become accepted inconveniences. You no longer dream of skiing, you view snowboarding as something “the kids do,” you watch TV and live vicariously through the characters who entertain you for an hour or two, and what you might have once called your sex drive becomes a bare flicker, one barely worth the effort to address.

You deteriorate, slowly, and as your body comes to detest any physical effort, you deny the obvious. You’re going downhill. If you’re not headed toward youth, you’re clearly headed toward the opposite. The symptoms are mounting, but you’re not “sick,” not in the conventional sense. You’re just not right. You just never stopped to self-analyse, but if presented an honest assessment, you’d have no choice but to admit, you’re accepting an unnecessary deterioration. If a slice of this represents any piece of your reality, you’re somewhere between the joyously living and the unwell. Not necessarily sick. Just not living the way you are capable of living. A sad acceptance. When coordination, athletic ability, and zest for living decline, most people accept it as “aging.” If you can recognize decline, with enough encouragement you might go for a doctor visit. It isn’t uncommon for that doctor’s visit to reveal blood pressure’s high, blood sugar’s high, testosterone is low, and if you’re like

most who find themselves sitting in a doctor’s office hearing

about “highs and lows,” you find solace in hearing

that you’re not going to die. Yet. You’ll exist,

perhaps in this

condition, perhaps proceeding through a continuous decline.

Medications can numb you or dull you to the any symptoms as they emerge. Deciding you don’t have time for exercise, deciding you’re stuck eating the way you’ve been eating, watching your waistline grow, shopping for clothing that is less and less revealing, buying into someone else’s reasoning for not taking control of your body and life, and filling your medicine cabinet with prescription bottles to escape your body’s signals that you are headed for crisis, are all contributors to the growing emergence of the unwell.The great news is, in an astounding number of cases, the unwell can become well. There is a stunning body of evidence to support the correlation between regular exercise and improvements in cognition and brain function, and with younger cells and clearer thinking, you really do begin moving back toward youth. Can every member of the unwell population find an entirely new beginning with passion and joy? Who knows, but even if they can’t all fully rekindle the juices that used to run through their veins at full throttle, every single one of them can begin a process of betterment. Every single one of them can begin getting younger! Medications are NOT going to rejuvenate you. Responsibility combined with a well laid out course and commitment to get physically active can bring you to an entirely new beginning, a transition from the unwell to a happy, fit, joyous member of the human race.

the iMpoRtance of physical actiVity

The importance of physical activity cannot be underestimated as it relates to maintaining a healthy lifestyle. It is the single most important endeavor in which one can participate to promote health throughout a lifetime. For decades epidemiological research has highlighted the health benefits associated with regular physical activity. Furthermore, there is overwhelming research illustrating the morbid and mortal consequences of a sedentary lifestyle. Undoubtedly, results reaped from participating in regular physical activity are second only to those of the fountain of youth. It is the only lifestyle choice that not only adds

as a peRson iMpRoVes theiR caRdioVasculaR enduRance, a

nuMbeR of beneficial adaptations take place in the body,

including:

• incReased heaRt size (VoluMe and weight):

• Improves the strength and pumping capacity of the heart

• incReased blood plasMa VoluMe: Enhances oxygen transport and temperature regulation during exercise.

• decRease in heaRt Rate: Lowers both resting and exercise heart rate, reducing stress on the heart

• incReases heaRt stRoke VoluMe:Allows the heart to expel more oxygen-rich blood during each “pump”

• incReased caRdiac output: Improves the ability of the heart to pump blood throughout the body. This represents the most significant overall adaptation in cardiovascular function due to improvements in cardio-respiratory endurance.

• iMpRoVed oxygen extRaction: Increases the amount of oxygen tissues are able to extract from circulating blood.

• betteR blood flow & distRibution:Muscles and tissue require less blood because of improved delivery, extraction and utilization of oxygen. Less blood is needed by the muscles because their ability to deliver, extract, and use oxygen increases.

• loweRed blood pRessuRe

• MoRe efficient pulMonaRy function:Because the body can better utilize available oxygen, a person with better cardio-respiratory endurance doesn’t need to take as many breaths during exercise. This keeps you from getting “winded” — whether that’s climbing stairs or running sprints. Continuously challenging your cardiovascular system with increased levels of aerobic activity will generally result in gains in cardiovascular endurance and fitness. This can be duration running, biking, swimming, skating, cardio at the gym, or even higher-intensity activities like sprinting or interval training, which have been shown to increase VO2Max.



years to one’s life, but adds life to one’s years. Within the general population, the health benefits associated with increases in physical activity are overwhelming. Chronic diseases, their complications, and associated costs would decrease drastically if our sedentary population simply became more active. Perhaps the most promising information regarding physical activity and health is the fact that the most significant health benefits of exercise are seen in those sedentary individuals who become moderately active. Furthermore, physical activity need not be vigorous to attain health benefits. This mounting epidemiological research is bringing about increasing momentum to promote regular physical activity as a means of preventative medicine.

the definition of fitnessPeople often have a very simple explanation as to what physical fitness means to them: it’s being able to walk from A to B, having normal bodyweight or just looking healthy. I always ask clients during our first meeting what they understand by ‘being fit’. If you look at the actual definition of physical fitness you will realise that there

are multiple components of fitness which are all essential to contribute to a healthy, fully functional body. Here is a definition of the word fitness that more or less sums up its essential components:

The ability to function efficiently and effectively without injury, to enjoy leisure, to be healthy, to resist disease, and to cope with emergency situations. Health-related components of physical fitness include body-composition, cardiovascular fitness, flexibility, muscular endurance and strength. Skill-related components include agility(defined as the ability to move in any direction quickly), balance (in multiple dimensions) coordination (hand eye, foot eye,) reactions, rhythm, power, and speed (in all directions). The relative importance of each of the components varies for each person.

body coMpositionIn physical fitness, body composition is used to describe the percentages of fat, bone and muscle in human bodies. Because muscular tissue takes up less space in our body than fat tissue, our body composition, as well as our weight,

determines leanness. Two people at the same height and same body weight may look completely different from each other because they have a different body composition. Those with optimal body composition are typically healthier, move more easily and efficiently, and in general, feel better than those with less-than-ideal body composition. Achieving a more optimal body composition goes a long way toward improving your quality of life and overall wellness. Excess fat has been linked to numerous health problems such as increased risk for diseases such as cancer, diabetes and heart disease. Having excess fat, specifically surrounding the internal organs, can damage your health and contribute to serious medical conditions such as liver disease.

caRdioVasculaR fitnessCardiovascular fitness refers to the ability of your heart, lungs and organs to consume, transport and utilize oxygen. The maximum volume of oxygen your body can consume and use is your VO2 Max. When you exercise regularly, you can increase your cardiovascular fitness as your heart becomes more efficient at


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pumping blood and oxygen to the body, and the body becomes more efficient at using that oxygen.

flexibilityFlexibility is the ability to achieve a full range of movements – to turn, stretch, twist and bend – without any stiffness, aching or suffering a spine or joint injury is defined as suppleness.Suppleness or flexibility is an important part of a healthful life. Being supple means that you can reach up to take an item down from a bookshelf, for example, or bend down to tie your shoe laces, without feeling that your movements are restricted in any way. When you are young, you tend to take suppleness for granted. But as and when you start growing older, you need to spend a bit of time enhancing and maintaining your suppleness.

MusculaR enduRanceMuscular endurance is a muscle’s ability to perform repeated contractions over a period of time without fatigue. Activities of daily living such as carrying groceries, walking upstairs and even gardening also depend on muscular endurance and

slow twitch fibers. Improving muscular endurance provides benefits beyond the strengthening of muscles. A program of endurance training will improve bone mass, increase strength of connective tissue, decrease the chance of injury and help muscles heal faster after injury.

stRengthStrength refers to a muscle’s ability to generate force against physical objects. In everyday life, this typically refers to how safely and effectively you can lift suitcases, gas cylinders and spare car tyres without sustaining injury. Here are some compelling reasons for you to start a strength training workout right now:

• Control your weight• Prevent heart disease• Increase bone strength• Fewer injuries• Greater flexibility• Improved posture• Improve blood sugar control• Anti-depressant:

Strength training has also been shown to be a great antidepressant, to help you sleep

better, and to improve your overall quality of life. A Harvard study found that 10 weeks of strength training reduced clinical depression symptoms more successfully than standard counselling did.

Lack of physical activity will bring about deterioration of the body. In some it happens later than in others, but eventually it catches up with everyone. Are you willing to let your body deteriorate to an extent of compromised health, of limited wellness? “Anima Sana in Corpore Sano” is a Latin phrase expressing the ancient ideal of a sound mind in a sound body. Neglect your body and your mind, your feeling of well-being and your joy of life will suffer. Your other option is to get active, restore your health, rejuvenate your body and enjoy life. You’ve only got one… take care of it!

Richard Geres is an internationally certified Fitness Professional and Personal Trainer with over 18 years experience. He specialises in weight management and health related fitness and runs a Personal Training facility at the Corinthia Hotel St. George’s Bay, St. Julians. He can be contacted through his website at www.richardgeres.com for seminars and private consultations.


A brief history of Neville, of 3a...Having spent over ten years working as an accountant, auditor and consultant with a top mid-tier accountancy and audit firm, I have extensive business experience. Together with my partners, Christian Vella and Clive Farrugia, we set-up ‘3a’ in 2008, meaning that 3a is one of the new kids on the block in respect to the accountancy & auditing profession. We took over, through a management buy-out, a substantial part of the client portfolio as well as practically all the staff of the firm that we had been working for in the previous ten years. That was the inception of our firm. We launched our brand 3a in February 2008, as well as our new offices in Birkirkara which were inaugurated by the Hon. Tonio Fenech MP, Minister of Finance, and top officials in the local financial scene.

3a expanded on a growth strategy, focusing on international business, through the set-up of a dedicated international tax unit. In 2010, 3a took on board Franco Azzopardi, a leading specialist in corporate strategy and finance and MISCO, Malta’s leading knowledge organisation on the island, as equity holders. Franco Azzopardi was appointed as chairman, whilst MISCO directors, Joe FX Zahra and Lawrence Zammit, were appointed as non-executive directors.

Besides the benefits brought about by the synergy of the new partners’ areas of expertise, which enables 3a to extend its service offer in the advisory arena, this gave impetus to 3a to embark on its internationalisation strategy.

What makes your service provision “fresh, innovative and personal” ?Many businesses don’t understand that generating new business relationships is not about selling – it’s about establishing trust, rapport, and the creation of value. Good business practices are not static. And if you want to create growth, increase customer satisfaction, and drive brand equity, one needs to start adding value. This is the principle on which we portray our service provision as “fresh, innovative and personal”. We try to talk less and listen more. For most professionals this may seem difficult since they are deemed as the experts and the persons that should do the talking. However at the end of the day it’s not about us, our company, our products or our services. It’s about meeting customer needs (and, again,

Issue No. 28 - 2011Interview

This interview was conducted by Jason Attard.

Interviewwith an Executive

Neville Cutajar

3a Accountants is a relatively new firm, having been brought into existence by a party of three with a shared vision of providing a fresh, innovative and personal service to businesses both in Malta and abroad. Today 3a’s portfolio has grown to include a balance of both local and international clients and is embarking on its internationalisation strategy. To find out how the firm has managed to evolve into becoming one of its industry leaders in such a short time, The Executive

interviews one of its Managing Partners and Directors.


3a’s logo embodies the modus operandi.

as a contributor to the value of our organisation and its customers. We are keen listeners and encourage our people to unleash ideas. We provide knowledge sharing and development, continued education, participation and feedback, personal development, and a feel-good ambience and work-life balance.

Youhaveaquiteuniqueopenoffice,wherein senior management share the space equally with others. What can you tell us abut this style?As described previously, our credo of being innovative and different has been put in action and actually implemented in our culture and in the way in which we operate. Our management approach is open and we work as one team. As an organisation striving to reach its vision, we choose to try and co-exist as human beings & professionals, rather than as boxed creatures in garbs of “executives” and “staff ”. Each and every employee is an equally important member of the team, with the same policies applicable to all. The structure facilitates team-work and excellence, and is oriented towards serving the customers in the best possible way. Projects are led on the basis of functional expertise, not hierarchy; the attempt is to get the best people to deliver the best we can provide.


adding value). The reality is that until we actually take the time to get to know our client and the clients understand that we care more about meeting their needs than anything else, then the relationship cannot evolve into a personal, trustful and meaningful one. And this is our daily challenge.

What can you tell us about the intricacies of management buy outs?Entrepreneurial management teams considering buyouts are faced with significant challenges in completing a pretty complex and energy consuming exercise. Buyouts pose certain inherent risks which need to be catered for and planned well. One has to create contingency plans and deal with specific issues as they arise.

Getting the deal done is of course only part of the picture to ensuring the ultimate success of a buyout transaction – it has to be made to work afterwards. A quality management team is undeniably a critical component of ensuring a successful conclusion to the venture. This, coupled with the other mentioned critical success factors, should be a catalyst to a new business venture, with fresh direction and a more focused business strategy.

Why the name 3a and what are your competitive advantages?3a was the name chosen for our brand, as it stands for our core competencies, Accountancy, Assurance and Advisory. It also captures the A’s in our carefully chosen corporate tagline, ‘Your Aspirations, Your Achievements - Our Aims’. This stems from our focus on two objectives namely, that of assisting our customers in realising their business potential through our advisory directorate, and that of accounting and auditing their achieved results so as to ensure seamless compliance with regulatory frameworks. We provide the business community with entry-to-exit support in corporate strategy, advisory, taxation, and compliance matters. We try to make each

the cRitical success factoRs of an Mbo include:

• Skilled persons managing the buyout

• Comprehensive due diligence, supported by quality information

• A credible growth strategy and plan for the business – both in the short and medium term

• Good, cooperative relationships with the principal that wants to sell

• A robust, healthy business with predictable cashflows

• Sensible acquisition price and terms

• A quality, backable management team

• Good communication with all parties involved as well as with those directly affected such as human resources and the clients of the business.

business encounter a learning experience in itself. Our competitive advantages are definitely our approach in dealing with our clients, what we call the 3a experience, which involves agility of service, quality, customer centricity and a personal relationship.

You are quite young, yet already employing several people. What is your key to success?I believe that the key to our success has been our drive to be innovative & differentiate yet still be professional and quality conscious. We have set up a firm where the focus is on customer centricity whilst embarking on building a team of professionals who are agile, competent and have the necessary soft skills to deliver an optimal service.

And how do you focus on customer centricity?Customer centric focus is a strategic choice that requires energy and dedication to implement. Being customer centric as a choice is radically different from the ways many companies traditionally operate. Our approach focuses on the maximisation of our customers’ needs. In this model each customer engagement is unique.

It is the customers’ success, their reaching their goals and targets, that is the focus for us. The challenge is to ensure that all those who interface with the customer change their skills and behaviours in order to support a customer centric strategy. We try to establish a partnership with our clients. Discussing options, getting decisions, understanding customer perspectives and needs, and implementing them are the bases of such a partnership.

You claim to attract the best talented professionals to work for 3a. How do you manage this?We believe that our people should not be simply technically competent, but have the necessary drive, ambition, aptitude and assertiveness to grow and become a

true professional. In this regard, we attract people with these attributes which can be moulded into best of breed p r o f e s s i o n a l s . Our staff are our most important resource. We see each individual

Interview with an Executive - Neville Cutajar


sure you have an exit strategy, a way to get the money back out or at least a good return, unless you have amassed enough wealth to be able to donate it! Simply speaking, most local businesses are family run and this aspect takes on a more important meaning, especially in planning the transmission from one generation to another.

Judging by an average performance direction from your management accounts prepared of several industries, how is Malta to fare in 2011?Industries vary a lot from one to another in this regard. The overall sentiment for 2011 is positive, however, there are certain industries which need to rethink their practices, operations and strategies, otherwise they will continue to struggle. One such example is the construction industry. Having said that, there is a lot of optimism, especially in relation to new and emerging industries, such as the aviation industry as well as industries which are in their growth phases, such as the financial services industry. So it will definitely be another challenging year but I believe that Malta shall continue to show the same resilience and performance as that shown in 2010.

So, you have an informal management role..I would say that we have a formal structure which is dealt with informally! This leads to an open and informal management approach but within a structured set of objectives, goals and parameters.

In auditing, a key factor regarding the business model is in quantifying time spent per job. How do you manage this matter?Traditional professional firms, such as auditing and law firms use time as their business model both in respect to assessing their costs and well as in their billing. In fact it is normal that when you ask for a quote in these industries, you get a rate per hour (normally according to the rank of staff involved). Our approach is different (again). Whilst we still look at our costs from a time based perspective and in this regard we have an automated time and costing system, we do not reflect this to our clients. We don’t believe that we are selling time.......we believe that we should be creating value and therefore our approach at 3a is that knowledge transfer cannot be fairly equated to the time it takes

to give advice. We believe that time-billing leaves our client with a big unknown. The style adopted by 3a is therefore to first assess and understand the situation then provide a quoted fee which is the monetary investment on the part of the client, together with the business outcomes that should accrue from the assignment. Just like a normal business transaction, if the price intersects the perceived benefits, then the deal is done, leaving no uncertainties such as open-ended assignment costs. Amendments to the deliverables can be requested through a ‘change order’.

You also specialise in succession planning. Can you give us a brief description about this matter?Most persons live as if there was no tomorrow. In business, planning ahead is a must and this applies even to that stage when a businessman needs to move on and leave his business. Entrepreneurs live for the struggle of launching their businesses and seeing them expand. But one thing they often forget is that decisions made from day one can have huge implications down the road. You see, it’s not enough to build a business worth a fortune; you have to make


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The emergence of the iGaming industry seems to have affected the audit industry somewhat more than others. How has your industry responded to this and what are your reflectionson the matter?It is true that the emergence of certain industries, such as the iGaming industry, has placed a strain on human resources in the accountancy field. This has been a challenge for all the firms in this industry, since they had to manage the difficulty in recruiting qualified staff, whilst at the same time increasingly requiring more resources for the ever increasing standards and complex demands of our profession. Having said that, there are certainly positives to be seen from this experience, one being that we have become more efficient in the use of human resources. Another positive is that today our profession is attracting more people and students to its fold. Our challenge is to maintain the level of quality that our profession is renowned for.

Earlier this year 3a signed an agreement to become a partneraswellasfinancialauditor of JCI Malta...Yes - 3a’s mission is that of adding value to the community in which we practice our profession. 3a is undertaking this partnership as a way of applying our Corporate Social Responsibility in a tangible manner. This would enable us to assist an NGO to undertake its aims in a financially sustainable manner. In this regard we shall be providing our services of auditing and financial guidance to JCI Malta. JCI’s aims are commendable. It provides the opportunity for young people to develop their leadership and entrepreneurship skills in order to create positive change. JCI Malta’s vision is to be the recognised organisation that is the forum for the development of bold and stimulating leaders within our community. JCI aspire to provide members with the opportunity to develop leadership

skills, social responsibility, fellowship and entrepreneurship for the advancement of the individual and the community in general.

Can you give us an example of a success story?I believe one of our recent success stories has been our venture with MISCO. Considering that 3a was launched just 3 years ago, we have managed to create a name for ourselves in the profession within a very short time. This has enabled 3a to attract MISCO in creating a unique professional set-up, merging 3a’s competencies with that of Malta’s leading knowledge organisation. MISCO brings with it 27 years of expertise in HR services,

marketing research and consultancy. It is an independent professional company providing marketing research, training and development, business consultancy

and people selection services. Add to that the insight and experience of MISCO’s directors, Mr Joe FX Zahra and Mr Lawrence Zammit, which have given 3a the synergy of the combined respective areas of expertise which shall enable the firm extend its advisory service offer and also embark on its internationalisation strategy.

Can you give us an example of an error?I believe that errors are the means to enable you to learn and grow. Therefore we have to be humble enough to look at ourselves on an ongoing basis and look where we can improve our service and operations. One area were we believe 3a learned from its errors is in our management of human resources. Initially our approach was that of reducing our staff exposure to the challenges and pains of growth and let them focus on what they were good at. However, with time we realised that empowerment was a better approach since whilst it exposed our staff directly to the challenges and difficulties encountered in our work, it gave them more of a sense of responsibility as well as increased their job satisfaction, initiative and commitment.

Words of advice?I would say that one of the differences between a good business and an exceptional business it that the latter goes the extra mile in servicing their customers. If all businesses manage to do that, the only variable factor would be price. In reality, a lot of customers would be prepared to pay a higher price if a business goes the extra mile for them!

Jason Attard is the Managing Editor and Publisher of the journal.

leaRning fRoM neVille’s expeRiences: -

• in your deaLings with cLienteLe, estabLish trust and raPPort.

• if you want to create growth, increase customer satisfaction, and drive brand eQuity, one needs to

start adding vaLue.

• taLk Less. Listen more.

• when negotiating a management buy-out, create contingency PLans and deaL with sPecific issues as they

arise.

• customer centric focus is a strategic choice that reQuires energy and dedication to imPLement.

• Projects ought to be Led on the basis of functionaL exPertise, not hierarchy.

• even a formaL hierarchicaL structure can be deaLt with informaLLy! this Leads to an oPen aPProach but within a structured set of objectives, goaLs and

Parameters.

• knowLedge transfer cannot be fairLy eQuated to the time it takes to give advice.

• it’s not enough to buiLd a business worth a fortune; you have to make sure you have an exit strategy.

• by not exPosing staff to chaLLenges, one is dePriving them of a greater sense of resPonsibiLity as weLL as increased job satisfaction, initiative and commitment.

emPowerment is the way to go.



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Can you give us a brief history of FGP?FGP stands for Fibre Glass Products which is what the company had initially started off specialising in when it was formed nearly fifty years ago, manufacturing products such as water tanks, sunbeds, canoes… The work tended to be seasonal, and fibre glass is also a hazardous material so we gradually moved into metal works, producing metal kitchens and office furniture until FGP finally started to focus on garage doors. We no longer manufacture fibre glass. We do however still sell it as a raw material.

So, what does FGP do?We deal in metal works, being galvanized steel as well as stainless steel products. We specialise in garage doors and automations.

If you come to us wanting something in particular, you can give us the design and measurements and we will make it for you. They are not ready stocked items which you can buy - they are tailor-made. So, basically tailor-made metal works and we specialise in this matter on garage doors.

How have you managed to gain the recognition of being Malta’s market leader of door manufacturing?Fifty years is ample time to learn how to create a product as near to perfect as is humanly possible, given that delivering a perfect product has always been a company objective. We constantly scrutinise the international market, visiting overseas fairs and so forth, to keep up to date with developments. We also have a really good team in our factory and in the office which again is something we have managed to create

Issue No. 28 - 2011Interview

Interviewwith an Executive

Janine Houghton

Having a stated goal in metal works of producing at “Zero Defects” is no walk in the park.Janine, who directs FGP Ltd, explains to the journal how this factor has facilitated their becoming a leader in the light metal works industry.

This interview was conducted by Jason Attard.

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in terms of the variety of doors and products that we manufacture along with the various finishes. We deal with residential and commercial doors, as well as industrial doors and gates for factories and warehouses. We are not limited to one specific type of door as some of our competitors are. We can and do cater for individuals, shops and industries. Also, since the product is manufactured here, clients come with their own designs taken from the magazines, the internet etc. So there is no restriction in design and we can accommodate people with different tastes. Different materials can be used. We can work in a rustic style and also in a modern style and we have different finishes for our products, even in wood. All this makes me feel that we have very few competitors overall. But when it comes to the small residential doors then yes we do have more competition.

Manufacturing competition…No, there are manufacturers, there are those who import the material and manufacture the doors but they are specialising mainly in sectional doors made from one particular material only.

etc., these all make a difference to the price. The bottom-line on this is - yes we can buy cheaper materials, reflecting the savings into our pricing. But we make sure that our product is of the highest standards, safe and with a very good finish. So are there differences between onekindof finishingandanother?Finishing has a lot to do with the way the product is manufactured and installed. And we also make sure that our workmen are efficient and not careless. We take our due time to finish the installation well - very rarely have our customers called us back, and if they do we make it a priority to solve the problem immediately. As such, we strive to finish well and not waste time on having to re-visit an unhappy client. We do prioritise on this factor and our workforce are well aware.

What is the level of competition in your line of trade? With garage doors there is a lot of competition. What we offer however, is very different to a lot of these new companies who have opened up recently,

through our experience. We just have a hunch when it comes to our staff and the kind of people we employ. We are always asking our staff what is required to help the company evolve, as everyone has their own area of expertise. And my father’s vast experience in the field is always there too. This is how we strive to keep our clients happy 100% of the time.

Surely economies of scale are working to your customers’ advantage...Yes. The materials come from abroad. Steel comes from the UK, Turkey and China. Other materials such as motors and automations are all sourced from major European companies. But some people do get it cheaper than us. We try to be cost effective and not throw money away, but when it comes to the finished product we do not cut corners. Sometimes we see other doors from our competitors and see why they are cheaper than us. You may see a garage door from a competitor and see a few little details that would not make a difference to you, whereas we would see the bigger picture, being in the actual manufacture, the materials used, the finishing and sealing

Interview with an Executive - Janine Houghton

Then there are those who import ready-made doors from Europe and even China. But our main advantage is that we do the entire works.

I am not aware of anyone else who has this kind of structure in your line of trade. I might be wrong.You’re not. A lot of people work from much smaller premises. I don’t think that there is anyone who is set up on the scale we are. When our representative; our draftsman, visits a client he will go with samples of the products, but some customers find it hard to visualise the finished product. They will then be directed to our showroom, so that they can physically see the full product range. We have a fully set up showroom with over 16 doors on display, some manually operated, and others motorized. This again gives them peace of mind with their purchase and allows them to make a more informed decision.

So what kind of management style do you make use of ? Our management style is one that is very informal. When our employees


unfortunate nature of the work, but they are few and far between and never through negligence from our part. Not all of those in our industry are as strict about these things, but to us the health and safety of our staff, and to the user of our products, is of top priority.

What about training your staff ?Yes, we also ensure we have a well trained workforce by sending our staff to courses. MCAST as an example provides such assistance to the industry, and we utilise our staff ’s skills in the area best suited to them. We have staff who are specialised in their own areas; our draftsman who goes out to measure and takes care of the installation on site; a foreman; a person who resolves all the problems which appear during the day in the factory; a production manager who takes care of the actual design of the product and its manufacturing, and so on, which helps to reduce any defects in all stages of the process.The people who are working on these garage doors are very experienced in their jobs; they know what they are doing. We have people who work out on sites

need to speak about anything they feel free to do so, without having to make an appointment first. If something is bothering them we speak about it there and then and deal with it on the spot. This is helped by having the factory and the office combined on the same site, thus addressing any issues as they arise. We try to accommodate things fairly and as our workers are undertaking manual jobs, we don’t want to make things more strenuous for them, but rather facilitate their work.

And do you have certain standards that you follow?We’re very strict with our health and safety standards such as using equipment and tools properly. They have to set up scaffolding where necessary, wear safety shoes, gloves and where required hats. Basically, where there is any risk, we tell our staff not to take it. We tell them to feel free not to work if they are not comfortable. They know what their capabilities are, and we tell them not to take any unnecessary risks. I’m not saying we have never ever experienced mishaps at work because that is the


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Do you carry out your own galvanising?No, we don’t do the job ourselves because galvanising plants are very expensive and you have to maintain them 24 hours a day.

The metal sheets come pre galvanised, and the galvanised gates, railings etc are either done locally, but more often than not they are sent over abroad. Our choice depends on the deadlines of each contract. This enables us to give the best delivery time to our clients. So you can handle deadlines.Yes very well, if there’s something that we really never get complaints about, it’s that we set a delivery date and we keep to it. As I said, we understand that delivering on time is crucial to customer satisfaction, to the ‘finishing’ of the product. It’s really something that we don’t struggle with.

Jason Attard is the Managing Editor and Publisher of the journal.

and those who work in production at the factory, and all of them are very qualified.

So, staff expertise and the quality and range of products you have on offer give you your main edge...Yes that, along with the fact that if a customer comes to us they have the benefit of peace of mind. We have been around for a very long time. If they have a problem with their doors they can come back to us for repairs.

Offering an efficient after sales service has always been one of our top priorities. We still service doors bought from us many, many years ago.

What can you say about safety of your products, precautions? Products must be safe. They ought to be always offered with all the safety equipment that is necessary to minimise risk to the lowest levels possible. Unfortunately some providers at times omit such features so as to provide a cheaper looking quote. I believe that the product offered should always include the safety features.

leaRning fRoM Janine’s expeRiences:

• Research the markets you are operating in so as to ensure that you stay abreast of new products and developments.

• Once staff have their own areas of expertise, they should be consulted upon ways of improving your service or product.

• Never cut corners, particularly so when dealing with matters of safety.

• Keep your staff abreast of technologies and efficiency by also implementing training.

• An after-sales service to your customers should be given top priority; it is a fundamental part of how your reputation goes from strength to strength.

• Consider trading with a foreign company even if there are local suppliers; you may find a more cost effective and efficient service.

• Under normal circumstances, the finishing touches should be conducted before delivery.

• Where there is any risk, instruct staff to not proceed.



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‘M anager’ is the flagship product of NetSupport and the one which put the company in the limelight. Manager is a remote-control application which

also offers file transfer, chat (including audio) between the user and the remote controller, session recording and hardware/software inventory. The main difference between Manager and many other remote-control products is that Manager is meant for large deployments, where one has a large number of machines to control. Manager makes it easy to keep track of the machines available and also makes multitasking between machines a breeze.

Installation of Manager is easy. First, a control application is installed on the network administrator’s machine. Then, a client is installed on every desktop which needs to be remote controlled. The client is available for all versions of Windows since 98

including Windows CE and tablet editions, Mac OS, several flavors of Linux and some mobile devices. Once launched, the control application will show a tree view of all detected clients, and remote-control can start.

One interesting feature is thumbnail view, which allows the monitoring of several clients simultaneously.

NetSupport DNANetSupport’s latest product is DNA, an asset management and inventory system. Most large organisations (particularly in the public sector within the local scene) must maintain an inventory of all their assets, and this includes hardware and software. As IT investment grows, so does the pain of maintaining an accurate inventory - and this is where DNA comes in to streamline the process.

IT Review: NetSupport suite

This review was conducted by Keith Vassallo.

Managing a network can be a headache - just ask any network administrator. Sometimes even a 10-host network can spawn problems which take days to solve, so one can only imagine what problems the administrator of a large network will come across. An experienced network team is essential to keep your network up and running and it is also important to equip that team with the tools necessary to perform their job. This is where the NetSupport suite of products comes in.

NetSupport products are available in over 60 countries worldwide, aiding in the management of over 7 million desktops, servers and mobile devices.The complete range of NetSupport solutions are provided in Malta by Computer Domain, available for more information on [email protected].

The Executive explores.

Issue No. 28 - 2011IT Review

DNA (Dynamic Network Manager) comes in several versions, all of which offer user management, full hardware and software inventory, alerting and even an energy monitor which can calculate energy spending (after configuration) and even suggest areas where energy may be saved.

Similarly to Manager, DNA consists of a control and client application with the control application being installed on the machine which will be monitoring and the client on any machine which is part of the inventory. DNA also works with remote sites, where a gateway is installed on a server at the site with which all machines communicate. The gateway then securely sends this information to the control application at the HQ. The DNA console, where the inventory is managed, is intuitive to use,

making it easy to quickly interrogate the inventory database as well as summarise data into graphs and charts.

Additional modules can be purchased for DNA, including an Internet & software monitoring pack. This reports back on Internet and software usage and can filter web use.

NetSupport protect

Protect is a Windows desktop security application. Using Protect, administrators can prevent unwanted changes to the operating system, control the creation of content, restrict unwanted file downloads and control application usage. The ethos behind this application is to be a replacement to draconian policy changes. For example, many large organisations simply disable external hard drives (pen drives, SD cards etc...) since unwanted software may be introduced via these means. Protect, on the other hand, automatically scans these devices when

they are detected and restricts any unwanted content. It can also allow read/write to the device but prevent execution. This preserves system security whilst allowing genuinely useful technologies such as external storage to be used.

NetSupport Notify

Notify is a tool for sending notifications to computers over the network running different operating systems. The notifications can be send over a LAN or WAN to computers running Windows, Mac or Linux. The philosophy of NetSupport Notify is to provide a simple and effective solution allowing administrators within an organisations to reliably deliver key notifications to all users across an enterprise without concern for network topology and to provide accurate records of message delivery and acknowledgement.

The notifications can be fully customised as being critical, technical, news or a number of other categories. The time-out for a notification can be specified as well as a schedule for the notification to keep appearing. Notifications can include an audio alert and can be set to require an acknowledgement. Notify maintains a history of all notifications sent, is fully localised and requires no changes to the network or sever installation.

Besides the tools mentioned here, NetSupport also develops other software including NetSupport School which allows for student collaboration within a networked classroom, NetSupport DNA HD, a web-based helpdesk solution and NetSupport 24-7, an online remote support system. Together, the tools mentioned here provide an end-to-end solution for effective network management which can empower your network staff to do their job better.

Some feAtureS of protect iNcluDe:

• Prevent copying, deletion and renaming of files and folders;

• Hide folders and restrict creation of defined file types;

• Restrict changes to the desktop, taskbar and system settings;

• Restrict shutdown, logoff and password changes;

• Lock control panels, task manager, command prompt and registry;

• Restrict available network drives;

• Prevent web browsers from running;

• Control access to external storage devices as well as optical drives;

• Allow USB devices for storage only, without allowing applications to be launched;

• Apply security policies;

• Manage a network of computers running Protect centrally and provide remote deployment.

Keith Vassallo has worked as a Test and Support Engineer as well as a Software Developer. He develops for the web and consults local businesses on low-cost IT infrastructure implementations. Keith is passionate about the latest in technology and has a keen interest in open-source matters and operating systems.

IT Review: NetSupport Suite

www.the-executive.bizThe Executive 64

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consulting | software | solutions www.theaccessgroup.com

Accountancy Age Awards 2010Software Package of the Year

Pick the best. Pick Access.

“They are definitely made up of winning material, and the figures back it up.”AccountancyAge Awards 2010

The Access package represented excellent value for money, delivered a good range of functionality and was user friendly.

Access launched a variety of products this year including iPhone, iPad and Blackberry apps. It has also added more than 150 web services and worked closely with Microsoft,

as an early partner to Windows 7.

Winners in 2008, and in 2009.Now again this year.

Zona Industrijali, Triq l-Imdina, Mriehel BKR 3000, MaltaTel: (+356) 21 44 55 66 | Fax: (+356) 21 48 43 16 | e-mail: [email protected] | website: www.ptl.com.mt

Pulse 2011 Joint Membership O�er*Pay €260 per person for a joint membership for six months* Direct debit is not valid on this o�er

Single O�ers*

6 months membership + 1 month free €325

12 months membership + 2 months free €585* other o�ers available on Direct Debit payment

Bene�ts in addition to full use of �tness, hydro and sauna facilities:

One FREE Kinesis work-out with Fitness Instructor (worth €23)

15% at Rickshaw Far Eastern Restaurant, Villa Corinthia Restaurant, Caprice Lounge and Wine Garden. The Orange Grove Bistro at the Corinthia Palace Hotel and Spa.

One guest voucher monthly complimentary day visit to same level of facilities.

the executive - issue 28

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