THE OWNER RELUCTANT TO PRAISE

Mark Price, former MD of Waitrose, shares his workplace fables – true stories from the business front line that can teach us lessons about career success

‘Brand alone was not enough to guarantee success’

The Owner of the Great Brew coffee chain had seen the business he founded grow rapidly in recent years. His new CEO had driven sales and profits sharply. He had introduced new innovations, improved service and shop ambience. But all along he kept true to the Owner’s vision that businesses don’t make nice coffee – people do.

At every turn, he involved the baristas and the team in the new ideas, as he knew that to deliver and keep improving the team was crucial.

At the CEO’S annual performance report, the Owner acknowledged the outstanding commercial performance – more customers, increased spend per customer, industry awards – but the Owner and the CEO couldn’t agree on the reason behind these results.

“Look,” said the Owner, “customers love our brand because of the consistent quality we offer, great service and nice environment. In short, this success is down to the reputation of the brand and the way our people deliver.”

“I can’t disagree with that, but the current management team have put in place strategies that build on that foundation,” replied the CEO.

“The reason the staff are engaged is because of the culture you have inherited – you’re repainting, not rebuilding. I don’t want to be rude, but anyone could do that,” replied the Owner.

The CEO pushed for a generous pay rise for the team to reflect their efforts, but the Owner was reluctant.

After a number of years of the same results and arguments, the CEO received an offer to work for a competitor on far more money. He took it.

Without the talented CEO, the senior team slowly began to leave. The Owner, keen to prove his worth and quietly jealous of what the CEO had achieved, took control of the business again and focused on cost control. He quickly learnt that the brand alone was not enough to guarantee success as sales slowed, market share fell and profits followed suit. Meanwhile, the CEO in his new company added energy and verve and continued his winning ways. Moral of the tale: Great leadership can enhance great culture