Keeping On Top by Being Upside Down!
Next time you take your shoes in for repair or have a key to cut or a watch needing repair, you may well come across the name Timpson. Established in Exeter since 1903 there are now 315 Timpson shops throughout the United Kingdom. So how has this company survived for so long and what have been the highs and lows along the way?
Customer and Employee Care are at the heart of Timpson’s success and foresight and the ability to read the market has truly saved their bacon. We have a saying here at The Plum Consultancy: “Hindsight is a wonderful thing, foresight is even better!” – Stephanie Walshe. Here’s a potted history of their story so far…
Five generations of Timpsons have been involved in the business that bears their name. Current Chief Executive John Timpson is the great grandson of the Founder, William Timpson who was born in Rothwell on 20th May 1849; by the age of eight he was already making and selling leather boot laces and at the age of 16 opened his first shop in Butler Street, Manchester.
The Company grew rapidly in the 1930s opening circa 10 shops each year. By the start of the Second World War the business had grown to 189 shoe shops and 11 shoe repair shops. When William’s son Anthony took over the Chairmanship, shoe retailing was in a state of dramatic change. The biggest impact on Timpson shoes was the introduction of cheap shoes by competitors such as Marks & Spencer, BHS & Littlewoods and the trend away from conventional footwear to trainers. The debate about future development led to disagreement in the Board Room and as a result, Timpson was taken over by the retail conglomerate UDS. Two years after the acquisition, Anthony’s son John was appointed by UDS to run their Timpson subsidiary. Following a tour of the the 250 shoe shops and 170 shoe repair factories he used the same basic principles that had guided his Great Grandfather 100 years before.
He put the shoe shops back on the retail map by taking up the cause of the customer and introducing a Code of Practice that ensured everyone shopping at Timpson got a fair deal. The customer care approach was a great success and helped to substantially increase sales and modernise the shops. In 1983, UDS was acquired by Hanson Trust and John Timpson led a buyout team that acquired the Timpson business. However, he foresaw the problems that were in store for shoe shops through increased competition, cheap imports and escalating High Street rents and in 1987 took the hardest decision of his life and sold the shoe shops to Oliver of Leicester, but crucially retained the shoe repair business. The number of shoe repair shops grew from 170 to 315 and the turnover expanded from £12.5m to £40m. Timpson’s next move was into Watch Repair and Locksmiths.
Upside Down Management
Timpson passionately state that it is people that are the main reason for their success. They operate a system called ‘upside down management’ believing that the customer and then their branch colleagues are the most important people to the business. The Upside Down Management concept gives power to the people in the front line who meet customers and make the money – everyone else is there to help. Below are the basic principles of this method of management:
1. All colleagues have the freedom to do their job the way they choose.
2. Every boss’s job is to help his or her team.
3. No Key Performance Indicators (KPIs), no boxes to tick.
4. Bosses don’t issue orders.
5. Head Office is a helpline – it does not run the day-to-day business.
Timpson prides itself on being an excellent company to work for. It believes that the benefits, training and support their employees receive are second to none. Most of its managers and all of its field colleagues were promoted from inside the company.
Timpson has a strong set of employee benefits including celebrating employee success, pension funds and other unique benefits such as all employees get their birthdays off and all employees can use the company holiday homes for free. To find out more information on these areas watch the Timpson ‘Magic Dust’ video here: http://www.timpson.co.uk/about/25/magic-dust
If you think these principles would suit your business visit http://www.timpson.co.uk/
If you need help getting the ball rolling or want ongoing assistance with your marketing, please contact us. Our founder Stephanie Walshe has 30 years experience in Marketing, 11 with multi-national fast moving consumer goods companies. We have a great deal of knowledge for you to tap into. Keeping On Top by Being Upside Down.
visit http://www.theplumconsultancy.com/marketing
