With retirement on the horizon, Ken develops a succession plan that will see KB Pike and Associates absorbed into a national company. David Oliver explains.

Ken Pike of KB Pike and Associates was one of the original stalwarts of the Australian hydraulic industry. He started his working life as a plumber, not really knowing what he was getting himself into at the time, but he was teamed up with ‘old’ Roy who mentored the young Ken and taught him how to appreciate the complexities of a plumbing system.

“Listen to me son, I’ll teach ya once and I’ll teach ya right,” was one of Roy’s most notable quotes and as he said it his broad callused hands would delicately grab the soldering iron, and with the dexterity of a much younger man, he had tinned and soldered a 4 inch gutter elbow in quicker time and to such perfection that Ken was left transfixed.

Roy was old school, and from a time when you were grateful to have a job and a good apprentice still got a kick in the backside at least once a day if he was lucky. Ken got lots of kicks to his backside.

Early this year, the Hydraulic Association conducted a 40 year anniversary at Darling Harbour and Ken sat with his former colleagues, reminiscing fondly of those giddy days when a team of well intentioned men had sat around a table at the Crows Nest. He was one of the founders and it was with some pride that he still continued to trade under the original company name.
Then, he was a young man in his early 20s and now, sitting at his desk in his small 3x4m office, well in to his sixties he put the phone down from a conversation that would set the course to his retirement.

He sat and looked through the glass walled office which opened into the engine room as he liked to call it, and tried to carefully rehearse the words that he had been practicing since the negotiations started just under a year ago.

PAN-Eng, were a National Engineering Company of around 500 staff who had offices all around Australia. They had made their mark by providing good solid engineering service to their clients and built a strong reputation covering all facets of building services. The company had of course offered hydraulic design as part of a multi-discipline package which was often discounted heavily for the glory of the overall win. However they weren’t able to gain respect for hydraulic design from their own loyal client base because they just didn’t have the expertise.
Being the legend Ken Pike was, he was well known throughout the industry, he maintained a small but very profitable business focussing on an elite client base, expert reports and workshop drawings from some of the major plumbing contractors around Australia. The business had survived through all the hard times and had been the training ground for many when known and reputable consultants who ground their teeth through the doors of KB Pike.

The directors of PAN-Eng made Ken an offer and after due consideration (after speaking to his wife) Ken took the final phone call from his legal team that the deal had been signed. KB Pike was to be absorbed into a national brand. Ken’s retirement plan was secured and he was only stitched up for three years on a fairly generous salary. His entitlements included six weeks leave and a handsome marketing budget which would be used at his discretion. His future was secured.

“Damn,” said Ken. “Now I’ve got to tell the boys.”

In preparation for the confirmation call, Ken had rallied his staff together for a board room luncheon. He asked Rowan, his secretary, to make the usual arrangements and she meticulously carried them out to have the caterers arrive on the dot at midday.

The boy genius looked through to Ken’s office from the engine room and saw Ken staring into space. Not an uncommon sight thought Tony but none the less Ken looked even more in Noddy land than usual.

There was a knock on the door and Tony stepped in. “What’s this all about Ken?”

“Oh, just a little celebration I’ve been planning, I’ll see you in the board room in five.”

As the door closed, Ken felt a pit in his stomach; he wasn’t looking forward to telling his team of 15 staff the news that was going to change their lives as well. Little did they know he had fought hard to ensure all the staff would be taken on board and be part of the PAN-Eng business model, particularly the secretarial staff. John Thomas, the CEO, had other plans that didn’t involve an increasing number of receptionists and tech staff, but Ken sat resolutely, it was a deal breaker that involved a cut in his bonus if he didn’t reach certain KPIs. A minor detail Ken thought, certainly something Rowan and her team didn’t have to know about.

Ken stood up, put on his jacket and headed for the boardroom.

“I have some important news for you all,” Ken started, “And it involves each and every one of you.

“For some time now I have been in discussions with a large multi-discipline company that have been very impressed with the work that comes out of this office. I know some of you have been approached by this company and your loyalty to me and KB Pike and Associates has been considerable over the years. PAN-Eng spoke to me about a year ago and asked whether we could merge together as they needed a stronger presence in the hydraulic arena.”

Ken could feel the staff getting a bit edgy as they were now understanding the purpose of the gathering.

“I have decided to work through their offer and to ensure that we were all well placed in the new company under one banner, we will be part of a multi-disciplined engineering office based in the city,” Ken beamed and puffed his chest at the importance of this revelation, only to catch a sight of boy genius walking out of the boardroom and slamming the door after himself.
The remaining lunch break was spent answering queries from staff regarding remuneration and working conditions. Generally there was a feeling of anticipation and excitement as Ken filled them in on the timing and conditions of employment.

Ken could feel his suit jacket tighten as the minutes ticked on and Tony hadn’t returned to the office, so he hurried out to the wine bar down the road in the hope of seeing him there.
The small wine bar was filled with lunchtime suits and business lunches; Ken knew Mario the owner well and waved his hand at him as he walked on through. Mario looked up and grinned and nodded his head in the direction of the back room to where Tony was sitting by himself in the corner wrestling with beer.

“You’ve shafted me Ken,” said Tony, as soon as Ken manoeuvred his large frame in an adjacent seat. “How could you not keep me in the loop? You know I’ve been loyal and how much I’ve supported you over the years and now I’ll be just a number in a national company, who doesn’t give a damn about hydraulics anyway!”

Ken had anticipated Tony’s reaction and allowed him to finish before Ken chose an opportunity to respond.

“Tony, I hear your concern, you have been very loyal and committed to this company. The fact is the offer was too damn good for me to pass up. We’ve had this discussion before; the multi-disciplines are fast tracking us at the moment. They have the resources and the staff to keep one or two paces in front of us. The Revit skills are unbelievable; they can draw from all the top universities and get the best graduates to design building services. They have the tech staff, the human resources, the marketing savvy to take us into the future – your future Tony; you will shine with the support around you in this new environment.

“The other thing,” said Ken, “I have brokered a deal that you will take over my position in three years time.”

Tony looked up from his beer, “Are we going to allow them to chop our fees?”

“Like hell we are Mate,” said Ken.

Tony grinned for the first time…