Gerry Merten Managing director / owner Paragon design, manufacture and sell ultra violet curable coatings for the printing and fibre optics industries.

Gerry MertenManaging director / owner

Paragon design, manufacture and sell ultra violet curable coatings for the printing and fibre optics

industriesCompany established in 1985

Todays focus / My story

• Learning to lead – not manage

• Building a motivated team

• Growing the business by empowering the workforce

The here and now• Paragon today

– £5m turnover with £700k net profit– Established in 28 countries via network of

distributors (exports 40% of turnover)– Four year plan to double sales and profit– New factory being built this year

• Me today– Focussed on future growth and welfare of the

business– Divorced from daily running– Happy with very tolerable stress levels!

Turn back the clock - 1998• Morale was at an all time low• Business failure in the USA almost ruined

the company• A co-director/co-owner had to be bought out• Declining sales; annual losses; sleepless

nights• Jobs on the line – personal ruin.• The company was in a Sink or swim

situation!

Here’s whyThe print industry wanted us and the sales potential was strong. Our niche sector was growing more than other print sectors but we weren’t growing with it.

• We were inefficient at coping with growth and change – our competitors were stealing our business

• Sales were falling slowly and profits falling rapidly• Radical changes were essential for survival.

Facing reality• We were not a good team – a bunch of

individuals with poor communication and lack of focus

• We were reactive instead of pro-active• Personnel development was on a needs to base

and for the chosen few• We were inefficient in what we did and wasted

time and money as a result• We had ignored the signs• We were amateurs in a professional arena

We had to change• Called in help from then LEEL using a dedicated

business manager and external consultant.

• Full SWOT analysis on all aspects of the business– Products; Manufacturing; Selling;

Administration and most importantly People

• Drew up a comprehensive three year business plan

• Called in help from the bank – big borrowing!

The doing bit

Split the survival plan into two distinct areas of focus

1. The business bit2. The people bit

i. The very personal stuff - Meii. The rest of the team stuff - my champions

The Business bit (the easy bit?)

• Before looking at the people confirm the business focus and direction – why are we were here!

• Time for change – what is the new business plan– Is it a formal plan clearly documented for all to

see– Is it a vision that everyone shares– Does it have the resources to make it happen– Is there a future!

The people bit - Me

Like all typical owner managers I had an ability to do many things in the company – often better than others. After all that’s probably why we have our own businesses in the first place!

On polling my staff and allowing their comments to be confidential to a third party I discovered some home truths!

The home truths• I was a bit of a control freak • I interfered with management decisions• I set too high a standard at times • People were often scared to speak openly • I was inconsistent with my moods - with

negative consequences• Some thought I wouldn’t listen to them

….the list goes on!

Personal action planI had respect and admiration from my staff but I knew it wasn't enough. – I had to change my behaviour if I was to have any

hope of raising morale and getting the support and confidence of my team for the challenge ahead.

– I had to let go of my control and trust others to make the right decisions

– I would choose my champions that would help bring about the necessary changes then focus on supporting their development and their ambitions.

The People bit – my champions

• Core skills must be in place– Experience, business knowledge, people

management

• One from each business area:– Sales, Admin, Technical and Manufacturing

• Clearly defined their roles• All given equal status

Supporting the champions• Systems and procedures

– Perfect way to interface our people and business ambitions was Investors in People. Without our commitment to IIP as a philosophy we would never have achieved the people empowerment. Lot of work but worth it.

• Capital investment – upgrading of IT systems, manufacturing

equipment and the workplace environment

• Introduce the added incentives– autonomy, financial reward, status

• Substantial commitment to training• Externally run team building sessions• Emphasis on roles and responsibilities

The champions had to become stronger and better business/people managers. They had to inspire and motivate their teams to achieve our business goals.In return I would give them my focused support as well as the right tools to do the job properly.

Supporting the champions

It’s a Win-Win situation

Personally we all achieve our ambitions, work in better conditions, earn more and have greater security.

The company grows in wealth, size and stature

The customers benefit from having a strong stable supplier

Four years later.. Extract from: The little book of tips (IIP/Cranfield

University)

“ My company went from a £45K loss-making scenario to £750K profit in a matter of four years. This was achieved by empowering the workforce and giving them the support, training and financial incentive to make it happen. The hardest part is the stepping back by the entrepreneurial leader to allow the team to grow up and take responsibility for their own destiny. We now all earn more, like our jobs better, are considerably more efficient and are forever optimistic about the future.”

Summary points• Know who you are and how others see you• Let your visions be seen by all• Empower those around you – don’t be a

dictator• Choose your champions and be prepared to

support them• Have a solid business plan that’s constantly

reviewed• Enjoy what you do – life's too short

Tutorial topics

What about you What do your people think of you and

how do you see your style of leadership. Is there an obvious change you would like to bring about.

Are you focused on your strengths.

Could you choose champions to make you and your business more productive.

About your business

Is your business plan up to date and addressing issues of growth.

Does it fully embrace the strength of your workforce in achieving that growth

Does it address the issues of weakness in your workforce abilities, management or otherwise

About you• What do your people think

of you and how do you see your style of leadership. Is there an obvious change you would like to bring about.

• Are you focused on your strengths.

• Could you choose your champions to make you and your business more productive.

About your business • Is your business plan up

to date and addressing issues of growth.

• Does it fully embrace the strength of your workforce in achieving that growth

• Does it address the issues of weakness in your workforce abilities, management or otherwise

Thank You!