When industrial products group Atkins Carlyle offered the opportunity for a management buy-out of its hydraulics manufacturing business in 2000, five of its senior management team seized the opportunity with great enthusiasm.
When industrial products group Atkins Carlyle offered the opportunity for a management buy-out of its hydraulics manufacturing business in 2000, five of its senior management team seized the opportunity with great enthusiasm.
The business, Hydair Drives Fluid Power Systems, was established in 1976 to service the aviation industry, but has since grown to service the resources, drilling, and oil and gas sectors.
Managing director Des Rath is one of only two of the original MBO group still at Hydair Drives; and after leading his company through turbulent times, he believes it is in a strong position to gear up for its next growth phase.
Mr Rath said the 18-month transition period after parting ways with Atkins Carlyle was an unsettled time for the company, exacerbated by the departure of its then general manager, who was one of the MBO team.
In 2002, after Mr Rath bought out the remaining majority shareholder and two junior shareholders, his main challenge was to re-adjust the ingrained culture of the organisation, which he believed originated from being part of a large corporation.
“I call it the ‘that’s how we always do it’ attitude. [The employees] weren’t allowed to think for themselves or given the freedom to be creative,” Mr Rath told WA Business News.
“We had to changed that mentality to more of a ‘can-do’ attitude.”
To improve efficiency on the business side, the company imple-mented its own systems, including IT and accounting packages, to allow employees the flexibility to deal with clients’ needs on a more individual and personal level.
The company also clearly identified its core business and created a vision for the organisation to map its path forward.
“We inherited a large number of clients from Atkins Carlyle. But we focused on targeting particular sized accounts and building relationships, rather than trying to have a million accounts and trying to serve them all with the same energy – you can’t possibly do it,” Mr Rath said.
“We had a clear vision for the business, what products we were selling where we were going to sell them, and a better understanding of where we were going.”
On a personal level, Mr Rath realised that engaging outside assistance with managerial tasks would help take his company to the next level, so he enrolled into the Curtin Business School growth program.
“In my opinion, for anybody entering business the EBDU program should be a prerequisite, because you can save yourself a lot of trouble,” he said.
Participating in the growth program, along with the assistance of a business mentor, helped him see his business differently and highlighted the need to look after the welfare of his clients and staff.
To boost team morale, Mr Rath introduced staff incentive schemes and reward programs, and encouraged staff to attend sales training and business development courses.
He also promoted a more open and interactive workplace by involving staff in the decision-making process.
“The company has a belief that work should be enjoyable, and if you enjoy what you’re doing then that spills over to the clients,” Mr Rath said.
With a strong financial position going forward, the company is eyeing potential acquisitions within the industry as part of their next growth phase.
Mr Rath said the company was currently in negotiations with number of other WA companies to represent parts of their product range in the South West and north-west regions of the state.
