According to Lou Gerstner, the renowned ex-CEO of IBM, “In the end, an organisation is nothing more than the collective capacity of its people to create value”. Under his leadership, IBM significantly pivoted its business model and focus, doubling down on the importance of corporate culture. Ultimately revitalising the tech company’s fortunes and unleashing the potential of its people in the process. The rest is history.
Tenn has also embraced the importance of culture in shaping an organisation’s values and behaviours, influencing how its team of individuals coalesces to deliver the best possible client experience. Indeed Tenn takes particular pride in crafting a distinctive culture based largely on the principle of ‘shared ownership’. An approach introduced to the company by its Chairman Nigel Le Quesne and one he developed through 30 years of business leadership. Plus showcased in a 2019 Harvard Business Review case study, entitled ‘Stronger Together with Shared Ownership’.
Put simply shared ownership means every member of the Tenn team owns a part of the business either directly or via an Employee Benefit Trust (EBT), turning employees into stakeholders. By doing so each individual is instilled with a strong sense of unity and common ambition. Creating the conditions for a truly collaborative environment, ultimately designed to best serve clients, encourage entrepreneurialism and catalyse long-term growth. But of course, there is much more to the approach than initially meets the eye.
There is only one boss – the customer
Sam Walton, the founder of legendary retailer Walmart, helped revolutionize the world of retail by also centering his business around the customer, and the people servicing the customer. He is often quoted as saying ‘There is only one boss. The customer. And they can fire everybody in the company from the top down, simply by spending their money somewhere else’. This is another great reminder not only of putting customers first, but also of the need for a business to focus on the other side of the coin too, i.e., the internal team driving the business and client experience forward. But often this is where the choices and challenges lie.
It is a common belief that if a company treats its people with respect and responsibility, and suitably rewards them, that they will respond in kindly. But often this can be hard to achieve in reality achieve. But getting it right can mean clients benefit from a highly committed and motivated team, who take accountability for ensuring the optimal outcome is delivered. Overcoming the hurdles that invariably will present themselves, rather than merely ticking boxes along the way. After all every business wants to avoid incubating a ‘computer says no’ business prevention philosophy anywhere within its walls.
Often in business, and not just the retail or manufacturing industry, it is not unusual for the principles of Fordism and the ‘division of labour’ to be commonplace. Resulting in individuals focusing single-mindedly on their particular ‘task-link’ in the value chain. Rather than ‘owning the whole’ and looking beyond their direct accountabilities. Tenn’s culture of shared ownership drives the opposite outcome. Meaning its people are genuinely encouraged to think and act like co-owners, looking beyond the ‘day to day’ and their immediate ‘to do’ lists.
As Matt Watson, CEO of Tenn explains ‘We hope that because everyone is an owner, in one way or another, that everyone strives for the best client outcome and crucially to think creatively when new obstacles present themselves. Clearly in our business, where transactions are often one of a kind, or indeed often without obvious precedent, this is a crucial mindset’.
Helping a company break new ground
Typical work hierarchies, such as multi-tier vertical business architectures, tend not to be compatible with this structure and way of working. Tenn’s team are routinely encouraged to focus on working collaboratively, not competitively. This may seem counter-intuitive to many as often healthy competition is cited as additive to business performance. However, when not managed properly undesirable side-effects such as poor communication or at worst unethical behaviour, can lead to toxicity, a breakdown in morale and/or a dysfunctional set-up. It has been proven repeatedly that when employees focus solely on individual success, it can undermine teamwork and trust, in the same way it does within team sports. Where there is the most focus on understanding what truly drives success.
A good example is to look at how Tenn has been breaking new ground by increasing its jurisdictional breadth. Each new lending jurisdiction presents a litany of new challenges, such as legal frameworks that need to be understood and navigated, as well as new reciprocal relationships with other experts that may need to be formed. At Tenn if the team of internal stakeholders believe improvements are possible, or perceive certain processes to be ineffective, they are empowered to take the initiative to identify and implement innovative solutions. In this way so-called ‘repeatable models’ are uncovered and can be used to create blueprints for future activities. This means ideas are cherished and concerns fully considered, to ensure the best outcome for all parties is achieved. Rather than relying on a top-down flow. A win-win for everyone.
Matt puts it this way ‘In all walks of life when individuals are fully invested, their approach to each aspect of the business tends to be more methodical and considered. Risks and merits are evaluated in close detail and there is an overwhelming urge to learn and increase the collective intelligence of the business. People naturally want to help and collaborate with each other. Overall, this leads to a more sustainable culture and the formation of long-term relationships with clients. To put it in Nigel’s words ‘we are stronger together with shared ownership in our roots’.
Befitting the size, scale, and uniqueness
From the very start of the short-term lending process, even though a dedicated Tenn team is assigned to the role of account management, the whole team is behind helping make it happen. Individuals throughout their internal ecosystem, regardless of work function, discuss cases in detail from the outset and ensure, early on, that questions are asked, and feedback collected. In this way decision making is accelerated, enabling potential challenges to be uncovered early, that if undetected, may otherwise significantly affect or derail the viability of the final outcome. This means funds are often released much faster, especially for the most complicated international cases. Without the internal alignment encouraged by shared ownership such practices can easily fall over.
In a meritocracy, employees can feel there is no limit to what they can achieve together and will strive to be the best version of themselves. Ensuring the customer benefits from not just high ambition but also a commitment to premium service levels, befitting the size, scale and uniqueness of the transactions Tenn specialises in. If there’s a solution to a problem, no matter how complex, Tenn’s resourceful teams, as co-stakeholders, are empowered to consider all the angles to uncover it as fast as possible. They are accountable and responsible.
Meanwhile when it comes to talent acquisition, the opportunity to share responsibility for the company’s success is also hugely beneficial. Tenn attracts people who harbour a long-term commitment to client satisfaction and want more than merely just to get the job done. This fuels dedication that means Tenn’s people, whatever their role, fully commit to delivery, often going above and beyond. And not just for clients but often, as trite as it might sound, for each other. Of course, the very nature of short-term bridging finance means arrangements may only last for just 12-18 months. However, the initiation of any client relationship is an enduring one from Tenn’s perspective with shared ownership helping nurture long-term relationships, rather than short-sighted single transactions. With all benefiting along the way.
One team, one ambition
Of course, this means Tenn also needs to oversee a highly selective and rigorous hiring process. One focused on hiring individuals with the right mix of work aptitude and attitude, and preference for collaboration and long-term tenure. Across all disciplines, new hires are rapidly given responsibility and a chance to get involved in the inner workings of the business. As a small and diverse team, self-imposed internal barriers are simply not effective or conducive to collaboration. So, no matter how long someone has been at the company, their role or seniority, everyone is encouraged as shared owners to play an active part in ensuring the collective team works as productively and efficiently as possible.
Obviously, every business is unique in its own ways, but at Tenn they believe shared ownership fuels the right culture for its clients. Putting its people in the driving seat for delivery, growth, and decisions to such a degree that once they land in the business, they tend ultimately to become fiercely protective of it. As explained by Matt, ‘I’m really proud of the team we have created here at Tenn, and their ability to directly share in our successes. Afterall Tenn is a people business, reliant on forming relationships and partnerships to help clients realise their lending ambitions. And even though it is is still early days for Tenn, our growth trajectory is extremely encouraging and testament to the progressive culture shaped by our shared ownership model.
If you want to find out more about our unique approach to business and international bridging finance, please get in touch.