RSS feedsTo become a leading IT finance provider over the course of 14 years is an impressive achievement, but Syscap’s uncompromising sales strategy was, even by the chief executive’s own admission, actually restricting growth.
Syscap was established in 1990 to meet the growing need for specialist providers of IT finance. By 2004, it had become the UK’s leading independent IT finance provider, with an annual turnover of £80m, largely due to its uncompromising sales strategy: transaction based, focused on new sales, a deal at any cost.
From a purely financial perspective, the business was a success, but when chief executive (the then sales director) Philip White looked at the figures, he discovered that the traditional profit-hungry sales environment was actually holding the company back.
Although Syscap had enjoyed sustained growth for almost 15 years, the sales staff churn rate was 65% per year, creating significant recruitment costs. It had no structured recruitment strategy, offered limited career development to staff and, by White’s own admission, was not an employer of choice among graduates and sales professionals. White recognised that for Syscap to achieve an increased level of success it needed to attract, retain and train its staff to be the best in the industry.
White embarked on a radical project to transform the restrictive, outdated company culture, setting out clearly defined objectives designed to reduce attrition, enhance employee morale, improve efficiency and productivity, and reduce costs. Following an intense period of research and business analysis, Syscap’s new direction began to take shape in the form of The Syscap Academy a dedicated professional sales training scheme for graduates and staff.
‘The academy was one among a series of changes we made at that time,’ says White. ‘But in terms of its positive impact on employees and the business as a whole, it has been the most significant.’
Syscap invests an average £388 per employee per year on training and development (the national average is £210). Even with this additional investment, turnover has reached £130m.
July 2006 marked a turning point for Syscap when the board of directors approved a private equity funded management buyout. White, who became CEO, is aware of just how vital the change in company culture has been in facilitating this process.
‘The significant investment made by AnaCap Partners was a massive endorsement of Syscap’s performance and focus over the past few years. We have worked hard to create a platform and infrastructure for sustainable growth, and the addition of both capital and expertise from AnaCap will ensure we can continue to drive the business forward.’
Now White is looking to the future. ‘Our expansion won’t be dependent only on
organic growth. We’re looking at business development through acquisition.’
White is facing two specific issues: first, how can he maintain the value and
integrity of the academy and the momentum for staff training and development;
second, how can he integrate another company into the Syscap environment,
without destroying or disrupting the cultures of either business?
‘We’ve come a long way in the past few years. I’m proud of the achievements we’ve made and the positive way in which our people have embraced the cultural shift. To lose that would be a great shame,’ he says. ‘Similarly, we’d like to retain any positive cultural attributes that helped to make the new company an attractive target for acquisition in the first place.’
Future acquisition should offer the opportunity for increased profits and greater market share. But having only recently transformed the company culture, White is keen to preserve the values that underpin Syscap’s success and move the company forward, with employee loyalty and enthusiasm still intact.
The main challenges
• Staff retention, with focus on training and career development
• Ongoing growth, both organic and acquisitive
• Remaining sympathetic to company culture of acquired companies, while keeping Syscap culture intact
