An ex-teacher has cashed in on the celebrity culture by rapid expansion and acquisition of competitors - but the hard work has been done behind the scenes.
|
Entrepreneur: Winston Broadbent
Company: Saxton Management Group
Business type: Professional speakers bureau, training and development, talent management
Employees: 38 (36 full-time, 2 contract)
Turnover: (2005 - 2006) Over $10M
Head office: Camberwell, Melbourne
Contact details: +61 3 9811 3500
The Saxton Management Group Story
When your business represents speakers as diverse as Paul Keating, Molly Meldrum and Cathy Freeman, a background as a teacher might seem unusual. In fact, it has been ideal for Winston Broadbent, who was head of mathematics and computer science at Melbourne’s Carey Grammar in 1988 when he and his partner, Nanette Moulton, purchased Saxton Speakers Bureau. Winston (named after Churchill) says: “In some ways, it was a parallel switchover from teaching to managing this company; both roles involved staff management, public speaking and good systems.”
|
Key learning points:
- Technology - Spend the time and money to tailor your business software systems - it really helps smooth the integration of acquired businesses.
- Incentives - Have regular sessions of praising outstanding achievements by individuals at all group companies.
|
|
Joan Saxton - a well-known, world-championship-winning speaker - established Australia’s first professional speakers bureau in 1965. She managed the business for more than twenty years. In 1988, Joan Saxton met Winston and Nanette through her children. The Broadbents wanted a business opportunity and Joan wanted to retire. Winston says: “Joan has remained a close personal friend. Saxton celebrated 40 years last year and Joan spoke at the celebration.”
The Challenge
Managing expansion and acquisitions.
The Solution
One of Winston’s first priorities after buying Saxton was to update the office systems. He says: “We were using carbon copy books: top copy for the client, a copy for the speaker and an office copy.” He commissioned a consultant to create tailor-made software to meet the company’s needs. “We have probably spent more than $200,000 over the years on upgrading and improving our systems... we are leading edge.” Getting the right systems laid the basis for expansion.
Saxton has managed a steady 30% minimum annual growth since 1988. Winston says: “Part of our growth has been organic and part of it has been through acquisition and merging with other companies.” In 1996, Saxton made its first acquisition, Harry M. Miller’s Speakers Bureau. Winston says: “He was our major competitor, with a good reputation, but we were already bigger than he was. We picked up some big names like Rod McGeoch and Bryce Courtenay, who are still with us.”
Since 2002, Saxton has expanded rapidly, opening speakers’ bureaus in Sydney and Brisbane; a total management business for celebrities; and acquiring a training business. The expansion has been funded by cashflow. Winston says: “We only invest in good businesses then we add the Saxton infrastructure and expertise to help the businesses grow.”
With six businesses with overlapping interests, Winston stresses the importance of streamlining office systems and creating a non-threatening environment. “When we acquire a business, we need to put that office on our system and merge our two databases. To avoid conflict as to who owns the client, we deal with that at set-up - so ownership is clear and the service delivery is consistent.”
A team culture is maintained through weekly telephone conferences and a clear rewards system. Winston says: “Each week, two members of the team are responsible for listing the week’s highlights and acknowledging an individual’s outstanding contribution.”
Although the businesses are spread over three states, the administrative and support staff mostly work from the Melbourne head office. The businesses are encouraged to share information and the rewards of success are also shared. Winston says: “We have an intercompany referral rewards system. A consultant in Melbourne might assist our training company with leads; we reward this through commission sharing between the offices.”
Winston says it is a big challenge to find great speakers. “Clients want to hear from people who are new and fresh but [who] have been in business a long time.” To find speakers, Winston stresses the importance of networking and listening to what is happening in the industry. “Speakers are usually referred by somebody we respect.”
The Result
Each year since 1988, Saxton Management Group has experienced steady growth of at least 30%. The stable of speakers has increased ten-fold in that time. Winston says: “In Australia, you need a large shopfront. In the United States, an agency can be successful with the likes of Bill Clinton and a few other high-profile personalities.”
Streamlining the office systems and ensuring that the same database is used in all six businesses have saved time and effort. Winston says: “Now when a consultant has information to update or a phone number is changed, it can all be done from one location. Everything now takes one hour instead of two.”