News

Business on a roll as MD focuses on new goals

(20 July 2005)

Change from exit to growth strategy sees company go for ‘world-domination’

Help from Durham Business School has turned a North East manufacturer’s plans for the future on their head. Instead of seeking an exit strategy and heading for retirement, Keith Chester, managing director of Consett-based KC Engineering, is now heading for what he smilingly calls ‘world domination,’ and aims to become the best ball bearing manufacturer in the world.

In the nine months that have passed since completing the Business School’s strategic development programme, Mr Chester has embarked on a strategy of growth and sometimes risky development. To date, this has resulted in a £1.2m takeover of his largest UK competitor, 12 extra employees and new joint ventures in the Far East.

With further joint ventures in the pipeline and a recent investment in a new, £400,000 machine, retirement is the last thing on the 59 year-old’s mind. After 21 years, the company had a strong track record in manufacturing precision, high integrity, white metal lined plain bearings for markets in the UK and overseas. Success had been achieved by taking very little risk, but Mr Chester appreciated that unless he developed an exit strategy, the next step would mean putting aside many of his past approaches.

Having turned to Durham Business School for support Mr Chester was able to share his ideas and concerns with other owner-managers from a diverse range of sectors. The year-long strategic development programme is aimed specifically at helping SME owner-managers to step back from running the business and develop strategies to manage change and growth. Talking with others on the course, Mr Chester realised that he wasn’t alone in his thinking or his need to devolve more day-to-day management in order to more vigorously pursue new opportunities.

He said: “I have always been extremely proud of our craftsmanship and the integrity of our products. But to be honest, our approach had always been somewhat timid and risk adverse. What I needed was a shot of adrenalin and support to turn my pipe dreams of success on a large scale into something real. That boost came from Durham Business School. “The programme content, input from the other delegates and support from Jeremy Wright, the Durham programme leader, gave me the confidence to try new things. I now have a ‘can-do’ attitude, which is reflected in the changes we have since made in the business. “I now have a really strong management team driving the business, rather than relying on myself to do everything. I certainly would not have had the self-belief to do anything as bold as take over a major competitor or compete for joint venture opportunities on my own terms. “It’s as if we’ve taken the hand-brake off the business and are prepared to move forward and take more risks. There will undoubtedly be big challenges to come and not all of them will work but it’s certainly going to be fun ”

The programme includes nine residential workshops over the course of a year, covering topics such as innovation, marketing and finance. In addition, the School invites external speakers to come in and share their expertise.

Commenting on the change in Mr Chester and his business, Durham Business School’s programme director, Jeremy Wright, said: “I am delighted to see the effect on Keith and his business. He was certainly stuck in a rut before the programme and is now much more positive and happier to take calculated risks.”

For more information on Durham Business School’s strategic development programme call Jeremy Wright on 0191 334 5437.

Issued on behalf of Durham Business School by Bradley O’Mahoney Public Relations. Contact: Amy Davison or Clare Maxwell on 0191 281 8833 for more information.