Chris is one of the more vocal characters in our industry, highly respected for his thoughts on how businesses should be run and the importance of hiring the correct staff. He runs MBA Associates a specialist consulting firm focussing on business improvement consultancy, HR and recruitment services within the private sector.
You can read some of Chris’ articles on the Fenestration News website here.
Can you tell us about MBA Associates, and how is your company performing?
MBA Associates was formed in 1997 by myself and Tom Mulvaney. Both of us had held senior positions in businesses in the sector, Tom had latterly been FD of Kawneer and I had sold my interest in a commercial fabricator and installer in the West Midlands. We had both used consultants in the sector and been very dissatisfied with the experience! MBA was formed as a result of that, we were working together at the request of 3i on one of their business interests at the time and had one of those ‘what this sector needs’ moments.
MBA true to it’s core principles, provides operational and strategic consultancy and our client list includes most of the system companies and fabricators from £25million to £1million turnover. As a result of that core consultancy business we became involved in recruitment. Business is about people and consultancy is after all about helping the people within the business to deliver. Having the right people to develop was key and we saw our clients struggling with lack of skills. Unable to deliver this recruitment through the usual channels we set out to develop a process that would deliver not just people but the RIGHT people for our clients. Much research and a close look at Job Matching in the States led us to develop our current client offering and this is now by far the best performing side of our own business. I am sure this is because the basic premise is right, most recruitment businesses have fee revenue as their measure, our KPI is retention rate. That means we deliver value, we believe if we charge a client £1 and deliver £0.99 in value we are expensive but if we charge £10K and deliver £20K value using our services becomes a no brainer! We are in the business of making money for our clients.
Consultancy is currently busier than ever but recruitment is suffering with the market. We had a very quiet period at the beginning of the year where new posts became scarce and we are now engaged mostly on enhancing company’s capabilities with key appointments many of which are highly confidential.
So, how is everyone else doing?
Funnily enough that’s the subject of my latest Fenestration News article and by far the most asked question from clients. The answer is that no one is doing brilliantly but as always there are winners and losers. In market conditions such as those we are all enduring at the moment the proportion shifts, there are far more losers than winners.
In a previous article you wrote in the Fenestration News website, you stated that it is in changing markets that the most money is to be made. So, what am I doing wrong?
I don’t know, what are you doing? Businesses that are operationally efficient, have the strategy right and most importantly are not highly geared and sat on some cash have opportunities that they may not have when markets are flying. Buy low and sell high is a basic principle but most people do the opposite! The housing market is classic, buying at the top of the market and watching an asset depreciate. People’s behaviour in their businesses is often no different. Businesses that play the market right (and have the resources to do so not just the will) will come out of this downturn fitter and having added market share and assets at below peak value.
Which companies are making money in the double glazing industry?
Those that have good people, and have recognised that this market requires you to do something not wait for things to get better. A passion for the business is always a good indicator.
If you could invite 5 people from the industry to join you for a dinner party, who would you invite?
The best looking (my verdict is final!)
What is the best tip you could give me for running my double glazing company?
I hate these formulaic approaches to business ‘Five habits of successful people’ or whatever, they rarely provide the answer and at best they provide some motivation. I suppose if you pushed me I’d say get the Strategy Right, Get the Structure to Deliver that strategy right then put the right PEOPLE in place. Driving the business with passion and enthusiasm is then your role, “the secret to success is constancy to purpose” is also as true now as it ever was.
I’ve set myself a personal challenge to sell an extra 2000 frames per month within 3 months – how would you recommend I achieve this?
Well for a start I’d question the goal. I assume you are in business to make money so the goal should be a fiscal one, first ask yourself if selling 2000 frames is the best way to get there. If it is, then you need to build the structure and put the right people in place to deliver that particular strategy.
This is a very general question, but how do you see the uPVC window and conservatory market developing over the next five years?
People often say to me that planning and strategy are a waste of time as you cannot predict the future. Of course we can’t but it’s a bit like forecasting the weather the more you do it the better you get and businesses have to have a view about the way forward. As for the market I think it will still be there, I think that many companies that are retail facing will become more Home Improvement focussed and less window fixated (alternative energy is likely to play a big part….. when the technology gets it’s act together). I think that the structure with systems companies selling to fabricators selling to fitters is a challenged model and may not be the best way forward (no emerging market structures itself like that….. powder in one end fitted frame at the other ie vertical integration is much more common). I also think that living space will be even more at a premium, we weren’t building enough houses before the present full stop and the present hiatus will wash through in a lack of living space that the sector could be well placed to exploit.
Whatever happens we are unlikely to be bored!!
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For more information please visit http://www.mba-associates.co.uk/
