Outside the Box How Misfits Can Help Companies to Be More Creative
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THE POINT bridgepoint.eu Intelligent investing in Europe from Bridgepoint Issue 28 | November 2015 Outside the box How misfits can help companies to be more creative Technology and Customer care Capital offence happiness The decline and Lucy Kellaway A match made for fall of the on illegitimate the 21st century personal touch capital letters Contents INS & OUTS 2 Bridgepoint investments and exits across Europe SECTOR ANALYSIS 4 Are you being served? Customer service is often discussed but all-too-rarely delivered. Does it even exist any more, or are we MANAGEMENT FOCUS witnessing the death of service? 18 Odd man out TALKING POINT Most employees fit standard criteria, 9 Future positive but unconventional “misfits” can give IT is widely blamed for social businesses an unexpected boost isolation, constant overwork and the FACE TO FACE demise of the family. But does the 23 Put to the test evidence stack up? Quotient Clinical CEO Mark Egerton on IN MY OPINION drugs, revolutions and horse-riding 14 Brain retraining BUSINESS TRENDS Information overload is widespread 28 Size matters in today’s society. Dr Daniel Levitin Large companies benefit from economies maintains that it does not have to of scale. But smaller firms can be be that way leaner, more nimble and, surprisingly, more profitable MARKET INSIGHT 32 Brand aid Brands were supposed to be yesterday’s story. But, if marketed wisely, they can be stronger than ever LAST WORD 36 Capital offence Lucy Kellaway bemoans the Indiscriminate Use of Capitals in Today’s Corporate Literature FOREWORD Mavericks and the mainstream s it time for businesses to employ misfits and oddballs? Perhaps you think you Ialready do. I ask because research shows that companies increasingly profit from the creativity and “otherness” shown by employees outside the mainstream. Of course, the task of recruiting such people isn’t easy and, even when you do, “maverick overload” at the expense of efficient operators and executors can be worrisome. In “Odd man out” (page 18) we explain how, in an ideal world, the best hire has the passion and focus of the misfit combined with the loyal and reliable traits of the more mainstream employee. Provided, of course, you’re happy to swim against the tide of convention in the first place… In “Size matters” (page 28) we challenge the assumption that large companies benefit from advantages of scale and therefore deliver superior returns, by finding that niche operators can flourish in areas that large players are either unwilling or unable to fill. And we ask if size may not in fact be the issue at all: might it not simply be about being the best in your field? We all know that IT can be a curse or a blessing for any organisation. For many, it is regarded as positively intrusive. Yet is this intuitive blind resistance correct? Or does IT in fact increase the overall quality of our lives? Read “Future positive”, (page 9) for an alternative view. Have you ever wondered why good service is now so elusive? In fact, many consumers now prefer the efficiency of machines to the incompetence of real staff. “Are you being served?” (page 4) shows how “half-good” service has fast become the gaping hole into which too many European companies have fallen. There is a way out – but it comes at a cost. “Ins & outs” (pages 2 and 3) provides an update on investments and realisations THE made by Bridgepoint since our last edition. New investments include the acquisi- POINT tions of Nordic Cinema Group, Azzurri Group (owner of the Zizzi, ASK Italian and Coco di Mama food and coffee brands in the UK), Balt, a French neuroendovascular November 2015 Issue 28 device manufacturer, UK discount-card clubs tastecard and the Gourmet Society, Published by and Appleby Fiduciary & Administration, a global trust, corporate and fund services Bladonmore (Europe) Ltd Editor group. Investments we have exited include French luxury cruise operator Ponant, Joanne Hart and Siblu, the holiday parks operator. A normal, busy six months for Bridgepoint. Design Bagshawe Associates UK LLP We always like to receive your feedback, so please let us Reproduction, copying or extracting by any means know what you think of The Point via [email protected]. of the whole or part of this publication must not be Enjoy this edition n undertaken without the written permission of the publishers. The views expressed in The Point are not necessarily those of Bridgepoint. William Jackson www.bridgepoint.eu is managing partner of Bridgepoint 1 INS &OUTS BRIDGEPOINT news across Europe Bridgepoint buys medical Recipe for device pioneer success Balt, a leading manufacturer of devices used to treat strokes Azzurri Group, which owns and aneurysms, has been acquired by Bridgepoint restaurant brands Ask Italian and Zizzi, has bought Coco di in the next five years, driven by an Mama, a six-store chain of ageing population and increased Italian food and coffee outlets rates of obesity. specialising in fast, healthy Balt is a pioneer in the sector, food such as pasta, salads supplying every major French and and sandwiches. international hospital that practises Acquired by Bridgepoint in neuroradiology. Headquartered 2014, Azzurri in France, it boasts a number of has nearly 250 proprietary, globally renowned, restaurants patent-protected products, focusing nationwide on minimally invasive neurovascular and intends techniques. to accelerate The company produced more Coco di Established in than 16,000 medical devices in 2014, Mama’s 1977, Balt designs, generating business volumes of growth to manufactures €100 million – 95 per cent of which around 40 branches over the and distributes were realised outside France. next few years. interventional neuroradiology (INR) Bridgepoint partner Frédéric Azzurri Group chief devices such as catheters, stents Pescatori said: “With its best-in- executive Steve Holmes said: and coils, which treat life-threat- class patented technology and wide “We have watched Coco di ening conditions including strokes, product range, Balt will be able to Mama’s development from aneurysms and arteriovenous accelerate its growth, add the start. It is a very strong malformations. production capacity, enlarge its brand that has quickly distribution network and attract new Worth an estimated €1 billion in developed an exciting 2015, the INR market is expected to customers, while maintaining its position in the quick-service grow by between 12 and 15 per cent innovative edge.” n food sector.” n Appleby management backed by Bridgepoint Bridgepoint has backed the primary services, its clients range from large management buyout of Appleby Fiduciary multinationals to individual holding & Administration Business from companies in corporate administration. Appleby Group. Trust administration clients include Appleby Fiduciary & Administration high-net-worth individuals, corporations Business (AFB) specialises in trust and and financial institutions; in fund corporate services, a market that is services, AFB helps to launch and expected to grow at around seven per incorporate funds, while also providing cent per annum, driven by increases in ancillary services. private wealth, foreign direct investment/ William Paul, partner and head of trade flows and increasing regulation. Bridgepoint’s financial services team, said: AFB administers more than 10,000 “As a standalone business, there is a real structures for almost 6,000 clients across opportunity for AFB to accelerate its the globe. Focusing on corporate adminis- growth organically and via acquisition, in tration, trust administration and fund what remains a strongly growing market.” n 2 Dining out Silver-screen success Bridgepoint has acquired Nordic Cinema Group, the largest cinema operator in the Nordic and Baltic regions, in a transaction totalling SEK 4.7 billion ( 500 million) € Nordic Cinema Group investments. In 2014, (NCG) owns 66 cinemas the group had revenues with 444 screens and of SEK 2.61 billion and Bridgepoint Development now an established feature four separate brands. EBITDA of Capital (BDC) has acquired of the growing eating-out Headquartered in SEK 533 million. the UK’s top-two restaurant market. We are confident Stockholm, the Mikael Lövgren, discount-card clubs: that with our support group has a chairman of tastecard and the Gourmet tastecard and the Gourmet 44 per cent Bridgepoint in Society. Society will grow their share of Nordic the Nordic The clubs offer member and restaurant box office region, said: discounts to members at numbers, broaden their revenues and “We believe more than 10,000 restau- geographic coverage and operates in 50 that there is rants in return for an annual extend their technological cities, from Oslo to Riga. scope to further enrich membership fee. Founded capability.” Although NCG was the whole cinema in 2005, tastecard is the Total UK consumer only formed in 2013 experience, from the UK’s largest diners’ club, spend on eating out was (from the merger of two venues themselves to with over three million £78 billion in 2014 and chains), its combined the food and drink on members, while the discount-card users eat presence in the region offer. We also see Gourmet Society has more out around 45 times a dates back more than potential for NCG to than one million members. year, compared with the 100 years, built up accelerate its growth BDC partner Alan Payne national average of 34 through both consolida- in the region and said: “Discounted dining is times a year n tion and greenfield adjacent countries.” n Siblu sold Ponant sets sail Siblu, the largest operator of Luxury cruise Arctic, Antarctica and Australia, and TDI, a holiday parks in France, has been operator Ponant has elsewhere. It was sales distribution sold by Bridgepoint Development been sold by Bridge- acquired by Bridge- channel, was acquired Capital (BDC). point to Artémis, the point in 2012 and has in the important A leader in the owner-occupier holding company of the youngest and North American model for holiday parks, the French entrepreneur best-invested fleet in cruise market.