Category Archives: inspiration

Entrepreneur of the Year Finalist – Colin Robertson of Alexander Dennis

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Being asked to run an organisation with more than 400 employees at the age of 25 would be a daunting experience for most. For Colin Robertson, though, it was something he took in his stride.

Colin was 17 when he started his career as an engineering apprentice with Cummins Engine Company, climbing the ladder steadily before being put in charge of the entire machine shop, managing over 400 workers.

After a successful period at Cummins he took on a new challenge at JI Case, the tractor manufacturer, where for four years he was unit manager and responsible for facilities across the UK, Germany and France. After 13 years of service he moved on to Terex Corporation where he enjoyed a meteoric rise through the ranks, becoming President of their $2billion construction division and ultimately Executive Vice President of Global Operations, based at the company’s Connecticut headquarters in the USA.

In 2007 he returned to Scotland, this time as CEO of Falkirk-based bus and coach manufacturer Alexander Dennis Limited (ADL).

Since then ADL has seen its UK market share rise from 30% to over 50%. It leads the market in all four key sectors – midi bus, full-size single deck, double-deck and hybrid-electric sales – and has established itself as Europe’s leading supplier of low-carbon buses that reduce fuel and CO2 emissions by over 30%.

In parallel with this it has seen export sales grow rapidly from 20% to circa 35%, doubled turnover in the past three years to £360m, with a further 20% growth anticipated in 2012, and is on course to see profits increase significantly this year and next.

All of this has been achieved in the teeth of the toughest global recession in 40 years but, despite this, Colin is convinced there is much more to come on the back of new partnerships and ‘build alliances’ he has now secured in North America, Hong Kong, China and New Zealand, and with recent big business wins in Canada, Asia and the Southern Hemisphere.

Retaining almost 2,000 employees in the UK throughout the recession, ADL has cleverly introduced invaluable out-sourcing arrangements, enabling it to increase output by 60% while preserving its core workforce in facilities at Falkirk, Scarborough, Guildford and key overseas locations. Clearly, this is one Scottish manufacturing boss who sees adversity as opportunity – and has taken the opportunity to take his company into the big league of global players in his industry sector.

Jim Boyle, head of entrepreneurial business at Deloitte, and awards judge, said: “We were extremely impressed with Colin both as an individual and as a business person. He is clearly very passionate about ADL and is committed to expanding the business even further.

“From a young age Colin has demonstrated a nose for building successful businesses and has a very impressive track record both at home and abroad. On accepting the role at ADL he has shown a keen desire to challenge himself and those around him. With Colin at the helm ADL is a great example of a successful Scottish manufacturing business driving an export-led recovery.”

Emerging Entrepreneur of the Year Finalist – Stuart Mitchell, Flexlife

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Stuart Mitchell established his entrepreneurial credentials when he set up Flexlife four years ago with co-founder John Marsden. An Aberdeen-headquartered business it supports companies with subsea interests inspect, maintain and repair their flexible piping.

Working as an engineer within the oil and gas sector, Stuart’s vision was for a consultancy which offered tried and tested industry solutions while radically changing the way consultancy projects were priced to ensure goals were aligned with those of the customer.

Flexlife opened for business as a two-man operation in April 2007. Word quickly spread throughout the industry, both in relation to the success of the innovative engineering solution and its approach to pricing.

The first major contract came in the form of a well project in Tunisia, which provided the security of cash in the bank and allowed Stuart to start on his second vision for the business – to combine the engineering consultancy with patented products for the inspection, monitoring, repair and protection of flexible pipes.
This award-winning technology is now widely acknowledged as a step change for the industry.
Earlier this year, Stuart strengthened his Board with the appointment of two non-executive directors in David Cassie of Subsea 7 and Sandy Clark of Amec, both considered to be energy industry leaders.
The last 18 months have seen the company position itself to take advantage of international growth and it now has a presence in Brazil, the USA and Asia-Pacific and has secured a clutch of high profile contracts with Hess, Statoil, Total, Shell, Maersk Oil and CNR among others.
The recent injection of equity, long term contract wins and strengthening of the Board has meant Stuart is now well placed to continue the business’ impressive growth through the £20million turnover barrier and beyond.
Jim Boyle, partner and head of entrepreneurial business at Deloitte and judge for the awards said: “Stuart is a focused and determined individual who spotted the opportunity to address dissatisfaction in his industry and did something about it. In four years, he has created a business unlike almost any other in the industry and which has a relentless focus on adding value.
“He has executed on his strategy in an incredibly short space of time, managing the company’s rapid growth without compromising on the approach which has made Flexlife the success it has been to date.”

Emerging Entrepreneur of the Year Finalist – Margaret Lang, Intelligent Office UK

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Margaret Lang first established herself as an emerging talent in 2001 when she used the experience she had gained from a number of years living and working in London and New York to successfully complete a management buy-in of Docuserve. Docuserve would subsequently become Intelligent Office UK, a firm that specialised in providing outsourced administration to the professional services sector.

Over a ten year period, Intelligent Office has transformed from a single service, regional provider of document handling services, to a business process outsourcing provider operating throughout the UK. Intelligent Office now also offers transcription and consulting services, providing clients with strategic advice and guidance on the optimum use of resources, systems and processes. This transformation has cemented Intelligent Office’s position as market leader with a particular strength in the legal sector.

During the credit crisis in 2008, Margaret was quick to recognise that the internal structure of the company needed to be streamlined in order to compete effectively in the new economic climate. Overseeing a radical restructure of the business in January 2009, Margaret ensured Intelligent Office was not dependent on external bank debt and was well-placed to capitalise on the budget cutbacks in the legal industry, which increased demand for outsourcing.

Margaret’s ambition continues to drive the business forward and she plans to extend Intelligent Office’s market reach through a combination of organic growth and acquisition.

Jim Boyle, partner and head of entrepreneurial business at Deloitte and judge for the awards said: “Margaret is a very impressive leader with a clear understanding of the market. Intelligent Office has a growing reputation as well as a strong and clear strategy for future expansion. A key factor in the company’s success is its ability to adapt and refine its commercial proposition in accordance with demands in the market. This is testament to Margaret’s forward planning and fundamental reorganisation of the business at a time of great economic uncertainty.”

Emerging Entrepreneur of the Year Finalist – Keith Wight, SST Sensing

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Keith Wight has increased his customer base by more than 600% in two years by going against the grain and developing a customer-centric business strategy – something which has not always been high on the agenda in the electronic sensing industry.

Keith is the chief executive of sensor designers and manufacturers SST Sensing Ltd which he founded in 2002 after four years working as an operations manager with New Medical Technology. In the first three years Keith initially built SST, which has headquarters in Bellshill, by quietly winning work from local contacts in Scotland, however, his hard work paid dividends in 2005 when he had his first major business breakthrough.

Keith identified a gap in the market to supply standard and bespoke electronic sensors to original equipment manufacturer (OEM) customers, providing a unique selling point through excellent customer service and technical support. The value added business allowed SST to have a closer relationship with their customers, resulting in increased repeat business and new opportunities. These contracts averaged up to £500,000 per year. The market had historically been dominated by larger firms driven by high volume, low customisation and less emphasis on efficient client service, so Keith’s alternative approach proved effective. Combining high quality technical support with SST’s ability to customise products to meet specific customer requirements, Keith was able to corner the market.

This success allowed Keith to raise the required capital to position the business for future expansion. As the company continued to grow, Keith incentivised staff members with a percentage of shares in the business, encouraging them to take a vested interest in future success.

Perthshire-based Keith, who graduated from Napier University in Edinburgh in 1995 with a BSc & MSc in Engineering and Quality Management, now employs 47 staff and has consolidated SST’s position in the industry. He has boosted the customer base from 70 to 450 since 2009 and is planning the next stage of the firm’s development, with the ultimate goal being to list the business on AIM within three years. Other plans are afoot to expand SST’s successful growth in the export market, further exploit the oil and gas sector and research overseas acquisitions. SST also has many new sensing technologies in development and its new oxygen sensor is designed to offer a vastly improved solution over existing technologies currently available. The vision of the company is to be the market leader in gas and fluid sensing and control within five years.

Jim Boyle, partner and head of entrepreneurial business at Deloitte and judge for the awards said: “Keith should be applauded for the way he has turned SST Sensing into a successful and profitable organisation, with a loyal, committed and stable workforce. He has shown he has the vision and ability to provide customers with products and services which they both need and want, whilst also appreciating that it could not have been achieved without the continued support of his dedicated team.”

The Six Factors of Influence

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Guest Blog from Russell Wardrop of Kissing With Confidence, who has shared the highlights of his talk to Exchange members at a Focus dinner. The event was hosted by Alan McCafferty

The Six Factors of Influence
I opened with the importance of fairness, emphasising that it’s always in the frame even if you are in a strong position. We are emotional beings and fairness always matters to us, so be aware that human beings are prepared to say no to something even if they will lose, simply to stop you winning, if they think you are asking for too much.

Reciprocity
Reciprocity is, essentially, making the other side feel special. Who doesn’t like to feel special? Find a way to have those you are trying to influence believe that you are doing something just for them and they are more likely to be persuaded to your way of thinking. Better still, of course, genuinely do something special just for them. This can be as simple as a hand-written note, a surprise you know they will like, a heads-up on a business opportunity or an early look at some new research.
One way or another, we do like to think we matter to other people. Show others that you matter to them and they are likely to reciprocate.

Social Proof
We are persuaded by others, especially those we have a good opinion of. So when you are putting that sponsorship form around the office, go to a generous and well-liked colleague first- one you know will put at least a tenner in the box- and you will do better than if you start with the tight-wad.

Social proof is about finding other parties to convince others that you are good at what you do.

I added benchmarking and proper empirical research These can take a bit more time and effort than collecting a quote, but are great objective ways of using social proof to persuade.

Consistency and Commitment
When people make a commitment, they are more likely to be consistent with that commitment. At a simple level, this is about getting those you want to persuade to commit to what you want: to say yes.

This took us into five minutes on one of my favourite emotional intelligence skills: assertiveness. Assertive people say the right thing, at the right time, in the right way. They are not afraid to ask for what they want. We had a brief discussion about knowing what you want before you go into the room, which is important, and ensuring you ask at the right moment.

Authority
Stanley Milligram did experiments in the 1950s that had people giving electric shocks to strangers at the behest of a “doctor” in a white coat. Eighty per cent of those in the sample administered a fatal dose.

Bottom line? We defer to authority, so enhancing and increasing your authority is an effective way to get others round to your way of thinking.

Scarcity
Some of the discussion here was around how dangerous factors of persuasion can be. Of course, any “technique” one might use can be ineffective if you use them in an amateurish way: for example if you only used your authority to push something through you will likely get push-back.

Scarcity is possibly, especially in hard-times, a very risky factor of influence. But there’s the thing, as we discussed: if you are less available then you are more valuable. Think about ways you can use your lack of availability to be more precious. Don’t call back tonight, right away, leave it until tomorrow morning…

Likeability
Ahhhhhhhh… finally likeability. I’ve spoken about networking before at the Exchange and networking has likeability at its core. Having a smile on your face and not being a miserable sod is important: no-one likes a miserable sod.

I finished here on small talk, and the importance of working on your ability to do it. It’s more than an ice-breaker, it’s more than just polite, it’s more than convention. Having great, interesting small talk makes you more memorable. And having others remember you is essential if they are to be persuaded by you.

But there’s more: if you share good small talk and get rapport going likeability turns into trust; and trust is what you need if persuasion is your goal.

Of course many of us use much of the above every day of our lives when out there trying to earn a crust. But when you look at the above you might find that you emphasise one a bit too much at the expense of others that might be effective. And here’s the thing: too many of us spend too much time using too much logic and too many facts. Use a bit of creativity to make your self appropriately memorable when you are out there and you’ll get more of what you want.

Video – investing in your business

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Investing in your business isn’t necessarily about spending money, in fact, investing in your business without spending money is clearly the preferable option.
So how do you invest in your business to ensure scalability and a happy customer and employee base? Exchange members share their thoughts on the most important investment they have made in their businesses.

Brian Williamson, Tiger Eye – time to network, share experiences and learn
Peter Grant, Grant Management – get people to work at the top of their ability
Anne Marie Hamill, Escape Recruitment – always invest in people
Murray Strachan, Strachan Partners – focus, communication and the “butterfly scenario”
Collette Grant, Grant Management – invest in your values

Vision and Communication

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Vision and communication were two of the key themes that came out of the recent Evening with Jim McColl in Glasgow.

Board members Peter Grant of Grant Management and Scott Allison of Teamly took time after the event to share their thoughts on Jim McColl’s story, and to tell us what they are going to change in their business as a result of having heard him speak.

Highlights from An Evening with Jim McColl #entex

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Scotland’s richest man, entrepreneur Jim McColl, has revealed how he added value to a £48m company and turned it into a £750m company.
Speaking at “An Evening With …” he shared his experiences and words of wisdom with a packed room of Exchange members at 29 Glasgow.
So many people wanted to hear Jim speak but couldn’t, so we’ve taken the highlights of his talk and posted them here.

Jim McColl on his £750m deal:
“I was keen to buy Weir because it had fabulous heritage and great portfolio of products but hadn’t been updated for years.”
“At the start of 2009 we hired more than 200 engineers, on an average salary of £35k, knowing there would be a lag before we actually got the business.”
“At the start of 2009 we were bidding for £50m of business a month, and at the end of 2009 we were bidding for £250m a month.”
“We created a compelling vision, and we shared it with everyone in the company – ‘£1bm by 2011 – Yes we can’. And we did. And then some.”
“Weir planned to grow the business from £68m turnover to £90m and £4.2m profit to £5.5m. In the same period, we grew the business to £413m turnover and £60m profit.
“I told the management team I didn’t want to read in a business plan about a banking crisis or an economic downturn.”
“Buying Weir was more than a financial decision, it was an emotional one as well.”

On the £750m valuation:
“You can’t factor a highly motivated workforce into a spreadsheet.”

On doom and gloom in the market:
“Try and avoid being drawn in by the global psyche”

Answers from the Q&A

On tax, the government and banks:
“ I want to minimise what I pay in tax so I can maximise what I invest back into the economy.”
“I guarantee I create more economic wealth in a year than the treasury does in a lifetime.”
“I’d like to see more powers for the Scottish government.”
“The government should set up an industrial bank to support SMEs with competitive lending.”

On being rich:
“People make the mistake of thinking if you are rich, you are smart.”

On advice for entrepreneurs of the future”
“Young entrepreneurs should look east, to Hong Kong, Singapore, and to India, that’s where all the growth and excitement is coming from. That’s where I would go.”

On going international:
“Analyse the market, be focused and create a compelling vision for people working with you.”

Company Culture – The Heart of Your Business

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“The biggest protective moat you can create is your company culture. Finding and keeping talented employees is the most challenging thing we have to do as business owners.” Scott Allison

How many times have you heard business owners boast “Our people are our greatest asset” or “Our people are our USP”? The truth is that it sounds good, but the reality is actually different.

Saying that you put your people right at the heart of your business requires a company culture that delivers just that, and it can be hard to achieve.

Tony Hsieh of Zappos on why culture matters:

Scott Allison, now founder and CEO of Teamly Teamly but previously CEO of telecoms provider Abica spoke at a recent Exchange event (June 14 2011) about Company Culture and shared some of his experiences with fellow members.

Scott highlighted the importance of company culture to a business and to its employees:

• Productivity can increase by anywhere from 20% to 100%
• Staff churn is incredibly low
• Ideas are generated from the ground up and this innovation can keep a company ahead of its rivals
• There is a clear framework for delegated decision making, and by giving people autonomy, job satisfaction vastly increases too

And he told the story of how he and his fellow directors took Abica on a journey that saw the company reevaluate its core values, focus on a goal to scale the business, and ensure all employees were part and parcel of the process. It was a challenging journey, but it ultimately resulted in happier employees, a better business, and winning a prestigious award for customer service.

This is what Scott said:

On why culture matters:
“It’s all about motivation: Once money is not an issue people are motivated by autonomy (empowered and involved), mastery (feeling great about their job, their skills and well trained) and purpose (what gets people up in the morning; being part of something bigger)”

On recognising the need to do something about culture:
“In 2006 four of us created “abc” by merging our businesses together. A year in, and although we were commercially successful, that was more about past success and we hadn’t made great progress in scaling the business beyond the founders.

“We definitely had a big challenge ahead of us: Operating in telecoms there are a lot of cowboys, and having been burned once with a bad experience, a lot of companies are very reluctant to change providers again.
We had our own set of “standards” which we had agreed, but weren’t taken that seriously by everyone.
We had a loosely articulated goal of what we wanted to do (create a £20M company and exit within 5 years)”

On how they tackled the challenge
“We started by defining our values. That evolved into a core purpose, a vision and a BHAG (Big Hairy Audacious Goal).

The benefits were significant: we developed an exciting atmosphere, we were attracting good staff and repelling bad ones, creating more loyal staff, with people more confident in how to behave and focused on competing with the big guys in our sector.

On specific tasks
“With the help of our coach we wrote down our personal values, agreed a set of business values – with input from everyone – identified professional behaviours and created a list of actions that reinforced those behaviours.

“It was powerful because then people understand why we do everything we do. And we talked about them. ALL THE TIME.

On the results for Abica
“People were motivated by more than money. It was about feeling challenged and being part of something bigger. It’s motivating, it’s exciting, it’s satisfying.

“People joined us because of the power of the story of the vision, and also because they were looking for something different.

“We won a major award for customer excellence beating John Lewis who were runners up. We were punching well above our weight. We were a small company of 12 people with just over a million turnover but people thought we were ten times bigger.

“We had employees that cared and felt part of the team, and we wanted them to think like us; as owners. So we shared KPIs with them weekly, and we planned to share monthly management accounts as well. That way it’s completely transparent. I know a number of companies who’ve done it to great success.”

Summing up
“The biggest protective moat you can create is your company culture. Finding and keeping talented employees is the most challenging thing we have to do as business owners.

“Competitors can copy your pricing, your products, your promotion, but they can’t copy your culture, and they can’t steal your people if you have loyal and satisfied employees.

“Believe in it, and build on it and you will create a company, a brand and reputation that no amount of advertising will create and a company with true long term value.

Scott’s “Things to Remember”
• It doesn’t matter what your core values are as long as you commit to them.
• If you can commit to your core values, you will be proud of the organization you create; you can’t buy that kind of branding.
• Being a values based company can require more patience with revenues and profits, but if you lay the foundation it means long-term success.
• Make sure your values don’t become just a plaque on the wall by truly committing to them; otherwise it will all be for naught and you will be at square one again.
• It will get worse before it gets better, but if you can push through the dark parts the culture can almost completely take care of itself.

If you liked this, here are some links to additional content we think you will also like:

A great video to watch:
What motivates us, RSA lecture by Dan Pink

Some great books to read:

Dave Logan, Tribal Leadership
Tony Hsieh, Delivering Happiness (Zappos)
Cameron Herold, Double Double
Howard Schultz, Pour Your Heart Into It (Starbucks)
Ricardo Semlar, Maverick
Firms of Endearment, How World-Class Companies Profit from Passion and Purpose
Rajendra S. Sisodia, David B. Wolfe, Jagdish N. Sheth

Raising Kids to be Entrepreneurs

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You may or may not have come across TEDTalks, a rich collection – updated daily – of unique talks and presentations from around the world. The talks focus heavily on innovation, creativity and technology, and they are given by experts in their field. The website is a fabulous source of material, both for learning and for sharing. This is one of our favourites:

Cameron Herold, on Raising Kids to be Entrepreneurs: