7 minute read
interview
Taking CARE of business
Why take on the role of chief executive at a property group just rescued from administration? lesley Davis talks to Peverel’s Janet Entwistle to find out
The Peverel GrouP’s new chief executive likes a challenge. Engaging, sharp and business-savvy, Janet Entwistle is in no doubt that she has a huge task ahead of her if she is to restore trust in Peverel among its residents and rebuild the company’s status in the leasehold marketplace, following the Group’s rescue from administration last year.
It is no secret that Peverel has had serious problems. A year ago its reputation was badly tarnished as the UK’s largest property management company went into administration. Former owner Vincent Tchenguiz was suspected of financial wrong-doing in connection with the collapse of Icelandic bank Kaupthing, although all charges were later dropped. Some of Peverel’s residents were receiving such a shoddy service from property managers that a Google search quickly revealed complaints and horror stories shared on sites such as Peverel Action and The truth about Peverel.
However, nine months ago in March 2012 the Group’s fortunes changed. Peverel was rescued by Chamonix Private Equity LLP and Electra Partners in a £62 million deal that substantially reduced Peverel’s debt and brought it back from the brink of financial disaster. The Group also received a boost with the appointment of its new chief executive in the same month.
Having held a number of senior roles in services businesses including most recently BT Fleet, Janet Entwistle has a strong track record of ‘business transformation’. In plain English, this means bringing customers back on board by improving levels of service, business transparency and communication and simply delivering what is promised. All this is then reflected in the bottom line. “It seemed to me that most of what Peverel was doing was good and there was enormous potential for improvement,” says Janet, adding: “most of the existing service failures didn’t seem insurmountable – upsetting, irritating and frustrating yes, but certainly capable of being solved”.
The former corporate lawyer admits she was attracted to her new role at Peverel by the
PEVEREl aT a glaNcE
1982 Established as a subsidiary of McCarthy & Stone 1993 Peverel Group formed following MBO 1995 Acquired by Westminster Health Care & Holiday Retirement Corporation 2000 Became wholly owned subsidiary of Holiday Retirement Corporation 2007 Acquired by Tchenguiz Family Trust advised by Consensus Business Group 2008 Peverel becomes responsible for Sonata Group of companies from Consensus Business Group 2011 Peverel’s holding company goes into administration following the arrest of Vincent Tchenguiz by the SFO. Operating companies continue to trade as normal while a new owner is sought. Solitaire Property Management brand ceases to exist as the company is completely assimilated into OM Property Management. This is the culmination of a three-year, £4 million improvement plan to address Solitaire’s serious historical operational and customer service issues 2012 Rescued from administration with financial backing from Chamonix Private Equity LLP and Electra Partners LLP in a £62 million transaction that involved a substantial reduction in debt prospect of using her change management skills to good effect: “When I went to see the new owners, their vision for the company appealed to me and so did the challenge of changing the company for the better”, she says.
This objective has been pivotal to the first few months in her new role, with Janet making her first task a major fact-finding exercise to determine how the business works on a day-to-day basis and identifying the priorities for change. “My role is largely a strategic one but I also have to look at each part of the business in detail. You can’t expect people to deliver if you don’t communicate what you want and identify a clear direction for the company,” she says.
Janet Entwistle: confident in her business expertise
So for the first six months at Peverel, Janet worked hands-on with the managers of each aspect of the business to find out exactly where the strengths and weaknesses lie, how communication can be improved and what customers want from their property managers. The new CEO admits that her knowledge of leasehold was initially limited “although that is changing every day”. However, she is quick to explain that when you are running a business, the principle is the same whether you are managing property or selling widgets. “I am very confident in my business expertise but you must have the humility to keep on asking questions,” she says. “If the expertise is there at the workface, get the structure and working practices right and you should be able to deliver the right services to customers”. Janet had “no preconceptions” about what she would find when she started to delve a little deeper but has been “pleasantly surprised” by what she has found. “Being in administration is pretty horrible for employees. It is bad for morale and no planning is possible. But despite that there are many very well qualified people at Peverel and many of the work practices are run along the same lines as those in larger organisations. Staff are well trained and their work is monitored and assessed against their job descriptions on a regular basis,” she says.
The internal structure may be a good one, but how will Janet build on this to improve the service to customers? When she took on her new role, the CEO was well aware of the bad publicity that Peverel had previously attracted and is determined to rebuild the company’s reputation by bringing its customers back on board. “It was clearly a business that had service and financial issues and there was a level of distrust and speculation fuelled by an information vacuum and lack of communication,” she says. The other aspect of Peverel’s business that has set it up for criticism has been the fact that the Group is divided into a number of different businesses which feed into the property management side of the operation, such as insurance and security systems. This has led to accusations of preferential tendering for ‘in-house’ services and overcharging of customers.
According to Janet, this too is an issue of trust. “These problems arise when people don’t trust you to work in their best interests,” she says - it’s all about transparency. “It’s
Restoring trust in any brand takes time
Facts and FiguRes
4,200staff
200,000
individual properties managed nationwide 2011 turnover £74.85million
not inappropriate to have those add-on businesses in place but there must be a real choice for residents. Tendering must be fair and seen to be fair. I understand why there are concerns over commissions and I know the history. My answer is that those businesses have to deliver a high quality service at a competitive price in a transparent environment. If we are achieving that, I am quite comfortable with the relationship between our companies”.
In response to all these issues, one of Janet’s first tasks has been to produce a customer charter that makes five key promises: n We will give you excellent customer service n We will be open and transparent n We will demonstrate value for money n We will be easy to deal with n We will consult with you
The Charter also sets out a number of clear commitments, backed up by specific milestones which will be measured and progress against them reported to customers. The charter demonstrates Janet’s commitment to cultural change within the business and to creating a clear focus on the needs of its customers. However she is well aware that restoring trust in any brand takes time. “I’m realistic,” she says. “When you’re trying to improve a reputation you have a real time lag while you tell people they are getting a better service and – even more important – deliver that service effectively”. Janet is a great believer in not changing anything for change’s sake. “If you’re trying to improve service delivery, you get there more effectively by doing it in a very logical way – you can’t improve anything overnight”. With a strong service background Peverel’s new CEO knows that everything the Group does must be judged through the eyes of the customer: “I have strength in this area, I love working with people and have proved over the years that I am very customer-focused”. Previous successes stand as testament to her words. But can she do the same at Peverel? As the old song goes, the times they are a changing and Janet is confident that, for Peverel residents, they are about to change for the better. ●
