Describes the thrill struggling business

Cardiff Business Club was recently addressed by Tim Parker, chairman of the National Trust, Samsonite and the Post Office. Here in a question-and-answer interview with Paul MacKenzie-Cummins, he outlines the opportunities and challenges facing the Trust,

toric mansions and gardens, and on the other hand we have over 250,000 hectares of land that we are managing too.

“People do expect a lot from the National Trust and we are responding to a lot of different demands. But I have been surprised at how wellrun the Trust is as an organisation – we’re about to reach five million members, so we must be doing something right.

“We’re creating experiences, and the challenge for us to make sure that our houses are not too static – some people are interested in history, some in the architecture, others just fancy a cup of a tea and a wander around the gardens, while others want to make a day of it and take an extensive look around the grounds.

“We try to make the visits interesting – people want a little more these days, so we’re now telling different stories and making these stories relevant to a larger audience.”

Question: Whilst at the AA, around one-third of the 10,000 staff lost their jobs during your tenure – a move that saw you subsequently dubbed the “Prince of Darkness”. It is a tag seems to follow you around since then, but is it a fair one? TP: “We faced quite a few challenges at the time. The key thing to understand about turnaround management is that there is always a costcutting element to it.

“But fundamentally, you cannot say that a business is properly turned around until it is growing again. And you cannot create value in a business unless you can create a real growth platform.

“The challenge of creating sustainable growth is there for every business, and a lot of the work that I have done recently is to take companies that have not been performing to their full potential.

“Managing a significant change can attract a degree of criticism. Honestly speaking, most people in the business will see that their interests in the long run are aligned with the company’s ability to grow successfully and profitably.

“Providing you explain clearly what you are doing, people will understand that what you are trying to achieve is actually good for them.

“For me, turning things around in a race against time to make them fundamentally different and fundamentally better is both incredibly interesting and exciting. You have to make decisions quickly and rely upon your own judgement, which for me is the most cutting-edge element of management.

“I truly believe that being a CEO of any organisation is the most interesting job there is, because it has everything in it.”

Question: In an interview with Management Today, you said: “If I’ve learned one thing, it’s that it is far harder running small companies than big companies.” Can you elaborate on that? TP: “When I started out, I was given small companies to run with generally small market share. Big businesses tend to have stronger market positions and that is the one element of any business that is hardest to control.

“For instance, when you have a 5% market share against three companies who each have 20% share, it is an incredibly hard environment to operate in. When you are a leading company in your sector, your market position is such that you are able to change the company internally.

“So when you have to fight against bigger competitors in addition to striving to improve the internal workings of the business, that is really tough – it is hard to push a large company off its pedestal when it has a 30% or so market share.”

Question: When it comes to appointing senior positions, does having large business experience necessarily make someone a better candidate? Is there a “type” of leader or does the nature of the industry itself call for different personality and leadership traits? TP: “There are two elements to this – are you are leading an executive team, or are you looking at a boardlevel role?

“For executive, of course you will want people who are experts in what you want them to do. Fundamentally they need to be team players. If they’re not, it simply won’t work, no matter how good they are.

“That is also true when it comes to board appointments to a certain extent. But the key difference here is that you are often looking for a broad mix of skills and perspectives.

“I am always looking for people who can make a distinctive contribution and are enthusiastic. I am less keen in having a board of “delegates” where each person is responsible for clearly defined functions.

“Another key element is how big a board is. The larger the board, the more difficult it is to have a meaningful discussion, so boards of, say, nine or 10 people are certainly more effective. It makes for a much better dynamic.”

Question: Given all the organisations you have represented, what you know and what you have learnt, if you could pass on one single piece of advice to aspiring managers and business leaders, what would it be? TP: “Sometimes people think that the organisation is more important than the role. What I mean by that is that I would encourage aspiring managers and business leaders to take on roles with smaller businesses rather than wait and be patient in the hope that something will come up in a large organisation.

“Be prepared to take some risk when you are younger in order to get the chance to prove that you can do the job.”

Paul MacKenzie-Cummins is managing director of Clearly PR & Marketing Communications.