Connect with us

Increase Profitability

How Basil Reekie Took Clientele From R1 Billion To R4 Billion

How big picture thinking has helped one of SA’s most popular insurance brands shoot the lights out – over and over again.

Monique Verduyn

Published

on

Basil-Reekie

Vital stats

  • Player: Basil Reekie
  • Company: Clientèle
  • Position: MD
  • Contact: +27 (0)11 320 3000
  • Visit: clientele.co.za

Under Basil Reekie’s leadership, the Clientèle group has successfully navigated the global economic downturn, which saw many companies around the world post vast losses.

Bucking the trend, Clientèle’s embedded value since 2008 has grown from R1 billion to well over R4 billion, while paying out dividends of more than R1 billion in the same period.

Clientèle is the only company presently listed on the JSE that has increased profits every year for the last 17 years. In 2015, the company was placed 14th in the Financial Mail ‘Top Company Survey’, and in 2015 it was also certified as a Top Employer by The Top Employers Institute of South Africa. Entrepreneur spoke to Reekie about his winning strategies.

Related: Meet The 40 Richest Self-Made Entrepreneurs On Earth

Strong leadership

You strengthened the Clientèle senior management team across all business units. How did you do it?

We were in the fortunate position of experiencing rapid growth which meant we needed to increase the size of the management team. This allowed us to determine what our weaknesses were and which additional strengths were needed to build a strong multi-disciplinary leadership team.

I normally look for a good attitude and proven ability. Formal qualifications are the least important factor, except for specialist roles such as statutory actuary or finance director.

Decision-making

Clientèle grew its employee number from 400 to 1 300 in seven years. How did you ensure that decisions could still be made quickly? Growth of this level can result in exactly the opposite.

Our biggest challenge has been remaining nimble as we have grown rapidly in a constantly changing environment. However, we have been successful at this in most areas.

The secret is making sure that the Group Executive team is aware of what is going on in all areas of the business and encouraging them to make proactive decisions.

Something I also encourage is people being prepared to test ideas and not being afraid of failure. If something does not work, it is important that you quickly revert back to what you were doing previously, or try something different.

Related: How To Build Your Business Like A Boss

Clientele-MD

Strategic Focus

Clientèle retains its strategic focus: creating simple, affordable and reliable products available to all South Africans. How important has it been to retain the strategic focus and how is that achieved against a backdrop of market challenges?

One secret to our success has been the ability to keep things simple. Nonetheless, we have extended our product range significantly over the last eight or nine years, adding products like our various hospital plans, our legal plans and our premium products, which offer significantly higher sums assured than our regular products.

Each time we add a product we are extremely conscious of the need to ensure that the product itself is simple and easy to understand and that it will enhance our offering to our clients, existing and new.

We have tried to stay away from being reactionary in what we do and do not simply copy our competitors, rather we are always looking for something that is unique, yet simple.

A good example of this is a recently launched funeral policy that pays the normal funeral benefits on death as well as a return of all premiums paid on death. This, we believe, is both revolutionary and easy for our clients to understand.

Another area where we are strategically focused is the area of client service. We aim to treat every client well at every touch point of the business.

Financial management

The group has a reputation for its dedication to corporate governance and responsible budgeting. What is your advice on ensuring excellent financial management?

Make sure that the right people — those who understand the numbers — remain involved in the detail. That will always result in good financial management.

Furthermore, keep authorisation limits relatively low and ensure that the executive team thinks about spending as if it was their own money. That helps to ensure that no-one spends frivolously, even when the business is growing.

On Leadership

How do you gain consensus?

My leadership style is relatively collaborative. I listen to the opinions and views of other executives without being afraid to make decisions when these are necessary.

All significant decisions are discussed in the relevant forums, particularly at Group Executive level.

As a business we are more than happy to test things and this makes it much easier to gain consensus than in another environment.

The key to consensus for us is that we set sensible targets before any tests are undertaken. We are rarely unwilling to test something provided that we have clear objectives beforehand to allow us to determine (unemotionally) whether it has been successful or not.

Related: The Tim Ferriss Approach to Setting Goals: Rig the Game so You Win

Innovation

What does ‘big picture thinking’ mean to you?

Big picture thinking is innovative. It’s the way a person looks at problems, opportunities and situations. Idea generators often think of big changes, new projects and substantial opportunities to create new business.

To be a ‘big picture thinker’ you need to be able to step back and look at the business and set goals for the long-term future, at the same time as being able to drill down into the detail in order to make a success of any given venture.

To imagine possibilities beyond what is immediately obvious, while homing in on detail when necessary is absolutely critical for a really successful leader.

In the insurance space, you have to be able to look into the future, understand what is changing in the competitive landscape and still be able to look at the detail of what is happening at present to make sure that the big picture you envision is indeed the one you want to achieve at your organisation.

Monique Verduyn is a freelance writer. She has more than 12 years’ experience in writing for the corporate, SME, IT and entertainment sectors, and has interviewed many of South Africa’s most prominent business leaders and thinkers. Find her on Google+.

Increase Profitability

Leon Meyer GM At Westin Cape Town Shares 4 Experience-Driven Tips On How To Keep Your Team Productive

Productivity is a fundamental requirement for an organisation – it’s the seed that builds a business and contributes to higher profit margins.

Leon Meyer

Published

on

increasing-productivity

Productivity is a fundamental requirement for an organisation – it’s the seed that builds a business and contributes to higher profit margins. But what’s the best way to ensure employees remain productive, and happy in their day job?

The answer is simple and highly effective and I choose to sum it up with three short phrases – respect, trust and teamwork.

In partnership with my management team, which consists of about eight staffers across various disciplines, we strive to tick these boxes.

Related: 5 Surprising Elements That Boost Your Productivity (One of Them Is Colour)

In total we’re ultimately responsible for managing roughly 500 employees.

Five hundred employees across several departments is a mighty job. But with teamwork, good listening skills and the right attitude from the top to filter down, any business can run like a well-oiled machine.

I’d like share with you the essentials for building and maintaining a productive workforce, and these apply to all industries, not just the hospitality sector:

1. What’s your definition of a productive team and how do you achieve that?

We need to keep in mind that productivity is a result, one that CEOs and managing directors strive for with their teams. But what happens beforehand in order to achieve that result determines whether it will be achieved at all, and is equally important. I suggest the following to ensure a productive team:

Define roles and responsibilitiesDirection is incredibly important; everyone needs to know exactly where they’re going and how they need to get there, so KPIs are essential.

Often when roles and responsibilities are unclear, things go pear-shaped. I am an advocate for setting clear KPIs, it’s a good way to steer us in the right direction, and in turn helps to grow the business and the individual in his/her role.

Be flexible: Rigid environments are the worst kind, allow your employees some flexibility and the opportunity to be themselves in the workplace. We spend so much of our time at work, we need to be ourselves there.

Celebrate the team: When there are achievements, celebrate them, single out individuals who are excelling and living the company values. This builds morale and is indicative of appreciation, which is fundamental when running and building a business.

2. What has and continues to be your philosophy since managing a large team?

Know your strengths and weaknesses, as well as your team’s and leverage off that. Be prepared to learn from others, no one can operate in isolation, regardless of the level on which you operate. Accept criticism and don’t bulldoze someone’s ideas, that’s how you build trust.

3. What in your view are the top characteristics the team look for in a leader?

  • Be consistent – inconsistency screams bad leader
  • Provide guidance – this is key, don’t turn a blind eye, give input and council
  • Listen – always listen intently
  • Be impartial – always be fair
  • Give credit – it builds morale and shows you recognise good work
  • Be patient – Rome wasn’t built in a day, and remember not everyone thinks the same as you do

4. What’s your view on an open door policy and how does it assist with managing a team and ensuring everyone remains productive?

I believe in an open door policy. It’s essential to build and develop trust. I’m the first to admit that it takes a while to build that trust, but once the team (on all levels in all departments) know your door is always open, and that they can trust you implicitly, half the battle has been won.

I host a GM’s roundtable every two months, just to establish how everyone is feeling and where everyone is at. It gives staff the opportunity to bring their challenges to the table, and I deal with them the best I can.

It’s 100 percent confidential and line managers are not allowed to attend. During this meeting we try reach common ground, and I commit to addressing and ultimately solving the problem(s).

Related: 10 Ways To Make Your Employees 10x More Productive

Continue Reading

Increase Profitability

Why Purpose Drives Profits

If you want to succeed, it’s time to start engaging where it matters.

Published

on

man-purpose

Over the past two years, many clients have been extending brand positioning exercises into purpose-driven expressions.

When we look at it, it makes sense given the country’s demographics. With many of our fellow countrymen struggling to make ends meet, brands have stepped in to provide them with a picture of a future worth striving for.

Global customer-centricity study, Insights 2020, led by research firm Kantar Millward Brown, has attempted to understand how brands could drive customer-centric growth as well as the factors that really make a difference. The research surveyed 10 495 individuals in 60 countries, and there are some significant efforts worth investing in if brands want to engage where it matters most, in consumers’ hearts.

The research uncovered that for market-leading companies and brands, traditional value drivers such as quality, packaging, or distribution are necessary, but no longer provide a competitive advantage; most brands are capable of providing these drivers. What is important, are a few critical approaches.

1. Purpose-led brands

The study found that when companies or brands linked to a purpose, 80% of them outperformed the market. Only 32% of non-purpose led brands managed to perform better than the market. 

Related: How To Calculate Gross Profit

2. On the ground

It’s important to engage with consumers in their space and on their terms. Through the use of memorable campaigns, experiential events and activations it is critical to engage with consumers on their turf.

3. Be truthful and authentic

Consumers can smell something inauthentic a mile away, especially when it’s coming from a brand. This forces brands to strive for authenticity in everything they do, especially when it comes to marketing. Building values and principle-based attributes into your brand as a guiding tool is essential.

4. Helping consumers commit

By allowing individuals to attach themselves to a brand with a purpose, it helps consumers personally commit to a cause that they consider important. When a consumer is personally invested, the link between the brand and product or service deepens.

Related: Profit Share for Increased Performance

5. Balancing heritage and modern relevance

There is a continuous tussle in balancing the traditional market, transitional market and the new consumers brands are trying to attract. Keeping the heritage and roots of the brand true to itself, while creating relevance for the new market, is a battle marketers are still fighting.

Continue Reading

Increase Profitability

Need To Trim The Fat To Boost Profitability? Listen To Your Clients First

Jeff Bezos believed that once you win the client over by doing this, everything else will follow – not least profitability.

Marc Wachsberger

Published

on

customer-service

Finding the balance between offering the extras that set you apart from your competitors and keeping things ‘lean and mean’ to minimise wastage and maximise return on investment is a tricky balancing act.

I’ve noticed that many businesses try to attract or retain customers by offering what they think their customers want, rather than finding out what they really need, and then delivering that. That’s an expensive mistake to make – and it’s not going to achieve the business results you need.

I’ve also observed that now is the age of the new entrepreneur – the game changers who disrupt the status quo long set by big bureaucratic competitors who think that their customers will just accept an inflationary (or slightly larger) increase every year, just because they always have.

While Amazon has been around for a while now, there’s also an important lesson to be learned from its launch goal, which was to bring the price to the client. Jeff Bezos believed that once you win the client over by doing this, everything else will follow – not least profitability.

How have I applied these lessons in my business?

Firstly, we design our hotels backwards – we focus on the needs of our clients, very aware that what hotel guests wanted years ago is not what they want now. That’s why we don’t offer thing like a turn-down service with chocolates on the pillow. Nobody eats the chocolates, and nobody uses the toiletries – so why should we include the costs of these unwanted extras (and the cost of the staff required to implement them) in the final bill to our clients?

Related: 7 Steps To Optimise Your Cycle Of Customer Service

We do, however, offer free WiFi internet connectivity, free parking in our buildings, free laundry services and either bed-and-breakfast options or self-catering rooms.

Simply put, we’ve cut the fat that nobody wants anyway, and added the value that our guests have said they expect.

Our clients have said that they expect the whole hotel to be a workstation, and not just the business centre in a dark, unwanted corner. So, we’ve put a workstation in every room, with always-on access to the internet. Our hotels are designed with beautiful work spaces that cater for nomadic entrepreneurs and double up as comfortable meeting spaces, again – gone are days of boardroom only meetings, our spaces are primed for work and play in one integrated space.

Our clients have pointed out that they’re already paying for their room – so why should they pay for parking?

Many of our clients stay with us for days or weeks at a time, and have said it would be helpful if we did their laundry. So, we do that for them – and we don’t charge them for it.

Related: Good Customer Service Is About Relating At The Same Level

It’s true that many of our old-school competitors offer a broader range of products and services than we do, but we’ve built a successful business on adding the value that our clients need, removing the costs and extras that annoy them, and keeping costs (theirs as well as ours) under control by cutting out unnecessary frills.

It’s an approach that’s worked for The Capital Hotels and Apartments as a disruptor in the hotel and long-stay accommodation industry, and I’m confident that its principles would apply to any other industry that’s ripe for disruption.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending