Talking Business with Andrew Henderson
In the latest in a series of ‘Talking Business’ interviews, Andrew Henderson, MD of Lancashire IT company Lanway chats to the editor of TheBusinessDesk.com Chris Barry, and Grant Thornton partner Karen Campbell.
COMMENTLanway’s leading the way in a changing market place
BOARDROOMS the world over have been dominated by one question in recent years: what makes a business successful in difficult economic circumstances? Hindsight is a wonderful thing, and with a few years of economic woe under our belts there are certainly a couple of conclusions to that question which can be drawn. Businesses which have been successful in the recession tend to have two things in common – strong leadership and the ability to adapt quickly to changing circumstances. Over the last few years we have all witnessed some high profile successes and failures in the business world but too often the story that isn’t told is that of the middle tier of strong, efficient small and medium sized businesses. Lanway is a classic example of this. The company, which sets up IT infrastructures for commercial organisations, is at the centre of an intrinsically fast-paced sector and has had to be very nimble to thrive. And thrive it has; a result of a new strategy put in place business-wide which refocused the company on particular sectors such as further education and housing associations. A company’s continuing ability to grow in the face of tricky world economics is testament to the quality of its strategy and this ability to adapt and re-strategise is central to that. The now managing director Andrew Henderson, started life at the company on the shop floor. Now 34, and having worked his way up through the business, it’s fair to say he knows it inside out.
Having been there he knows what works, and what doesn’t – a knowledge base which has undoubtedly set the business on a path to success. The role of advisors like Grant Thornton should support what companies like Lanway do best and that stretches way beyond tax advice or audit services. It’s about unlocking a company’s potential for growth, and providing the support necessary to help the business and its stakeholders achieve their goals.
|
“IT’S about empowering people and unlocking their potential”, Andrew Henderson, managing director of IT solutions company Lanway proclaims as we chat about the two-year long transformation project he has led in the business. As someone who over the last 15 years has risen through the ranks, from the bottom rung to the top of the ladder, spotting and nurturing talent is close to the heart of this ambitious, articulate and driven 34-year-old. Founded in 1993 by current chief executive Stephen Ackers, Lanway had two shops, one in Blackburn and one in Burnley when 19-year-old Andrew Henderson joined the company. At that time it was a small business supplying IT hardware. Andrew’s first job was to clear a room full of returns, and the speed and tenacity with which he approached this task proved to be the springboard for his career with the business. He recalls: “I left college after six weeks – there was nothing tthat grabbed my attention, and I got a job in IT – it was an area I’d always been interested in. “I joined Lanway on £59 per week at the bottom of the bottom rung of the ladder, but I liked work and I liked organising things. “There were two shops and there was basically a room full to the ceiling of products that had been returned, which all needed to be processed and sorted out , and that was one of my first tasks, ” he smiles. He soon realised that while he was ambitious and able, he would need some professional qualifications if he was to move forward with the business. As his role had grown to include purchasing, he undertook the CIPS (Chartered Institute of Purchasing and Supply) level 6 and 7 diploma while still working full-time. While this was a challenge – it was also well worth it: “It was tough – there was lots of studying and I did 14 three-and a half-hour exams in two years, but it was great being able to put what I was learning into action as I learned it.” By 2009 Lanway was beginning to sell equipment in large volume, sales had grown to £14m, but margins were thin – around 0.5% – making the acquisition of new customers, understandably driving a hard bargain, a challenge. Andrew says: “We were selling a lot of tin – and as an IT reseller – it was hard to see in a very competitive environment where we were going to go. “A couple of yerars ago we looked at the business and margin, and there were more headaches to deliver the same result.” At the same time a lot of Lanway’s business was in the public sector – it was one of the major IT suppliers to the former government’s Building Schools for the Future project – which was quickly axed by the Coalition to save money. Lanway knew it was going to have to change if it was to come through such a testing time. Andrew relates: “We had to basically re-egineer the business or drop off the face of the planet, it was as simple as that. “I undertook a strategic review to decide what was core, but also what made us different, and that was our technical ability. We had alway had it, but it was hidden. “Recognising that this was our USP, we started the process of putting services, support and advisory at the front of what we do.” This fundamental change has taken longer, and been more difficult to achieve than was anticipated. Andrew states candidly: “I wouldn’t say it’s been hard, more like mind-blowingly difficult. I said to the board, we would do it in three months – that was two years ago, and we’re still working on it.” As Lanway went through this process it has had to change not only its products and services, but some of its people too. While some 10 new staff have been brought in – to improve the project management and technical expertise in particular – there was a small round of redundancies as Lanway re-aligned. Andrew says: “It’s tough, but I knew there were people in the business who would not make the journey with us.” Intelligent and engaging Andrew, a keen golfer, spends his remaining free time with his wife Jenny and young son and daughter. He is passionate about helping Lanway become the best it can be – and is keen the business is receptive to ideas from the stakeholders that matter most of all – its customers. “I like to challenge convention and make us a better business as a result – it’s about listening, and for us not to just be providers of kit – but been seen as a partner – almost as if we’re embedded in their DNA.” One recent innovation was a new event for one of Lanway’s biggest markets – education – which brought together school and college IT managers to share their views. As well as discussing key issues such as funding IT improvements in the sector, the event also allowed Lanway to gauge it’s own relevance to customers. “The experience of bringing people together was amazing and to be able to hear their feedback was fantastic, It’s something we’re going to do more of – how can you know how your business is really performing unless you do that?” So what does the future hold for Lanway and its hungry young MD? “We’ve invested in the business and established a platform for growth where selling exertise rather than volume of kit is at the forefront of everything we do. “It’s an exciting time and there is plenty of more work to be done.” With CEO and majority shareholder Steve Ackers now focused on new opportunities in the IT space – two new subsidiaries have been established in the last year – Andrew is keen to take Lanway forward under his own steam. “I’d eventually like to do an MBO of the business – but it’s early days in this process.”
More articles in
Sectors
CommentsIf you'd like to leave a comment, please register now for free or login
|
