Company profile - Seddon: All Seddon done

Making a success of a family-run company isn’t always easy, especially when it has been going for more than 100 years, encompasses a number of generations and 13 subsidiaries, employs more than 1,500 people and has an annual turnover of more than £200m.

That combination of factors isn’t always guaranteed to make things run smoothly – and for some family businesses, the path to success is littered with disagreement, in-fighting and younger generations sometimes being stymied by their elders.

But that doesn’t seem to be the case for one north-west based business. Seddon Group’s roots can be traced back to 1897, when brothers George and John Seddon started a building business in Manchester. It expanded successfully, gaining a reputation for quality and reliability.

Today, the group is run by the third and fourth generations of the family, and while its name is still synonymous with quality brickwork – the original trade of the founders – it now encompasses a wider range of services.

While there are 13 subsidiaries under the Seddon Group, there are nine main business areas, which come under the control of the five board members; Stuart Seddon, Seddon (Stoke) chairman; Jonathan Seddon, G&J Seddon construction director; Stephen Seddon, Seddons (Plant & Engineers) managing director, Winget and District Garage; Ken Whitaker, Seddon Homes and Inspired Developments managing director; and board chairman Rod Sellers.

Generation game

While the board features three members of the fourth generation of the family, the third generation is still involved in an advisory capacity. Sellers is responsible for helping with the transition from one generation to the next.

He joined Seddon about six years ago as a consultant, helping on strategy and new projects, and to help with the transition from third to fourth generation, but it is a challenge he has enjoyed. "The third generation is still involved, and we have to harness that experience for the next generation and get the right balance. The fourth generation is very strong – there are three on the board, with one additional director."

Sellers must have been successful, as when the previous chairman retired after 29 years, in June, Sellers took over. "So I am continuing the same role, ensuring a good transition between the generations. But I am working with people who appreciate my involvement in the business and help in the process. We have the quality of people to take the business on, and it is helpful for me to be in the middle."

In the past, the separate divisions of Seddon were just that – they ran with little overlap as autonomous business units. Today, however, it is a different story, with a much closer relationship between the businesses. "This generation realises the type of world we are in and that we need to punch above our weight. We were operating, in effect, like three £60m turnover businesses, but when it comes to things like framework agreements, working together gives us much more financial clout and credibility.

"Clients are looking for a group that can handle a range of projects. It is taken as read that work will be high quality and on time, so the issues now are things like modern methods of construction, the environment and so on. We do things now like having client liaison officers, training apprentices, more community involvement, and recruiting in areas we are working in.

"The group has realised that while a good image and building to time were key drivers in the 1980s and 1990s, today it’s about inclusiveness, and that means changing your thinking. Companies need to be proactive."

The group is involved in a lot of work with local authorities, housing associations and ALMOs, and Sellers says winning this sort of work means a lot of work upfront on social and environmental issues.

Seddon’s wish to push the business forward has led to it setting up a new business, Inspired Developments. Based in Warrington, it works in the regeneration and urban renewal sector, developing residential and commercial property, adding value through its design, innovation, community consultation and urban planning skills. It is deeply involved in several regeneration schemes in the North West, including Stockport, and also in Staffordshire.

And with the future in mind, it launched a construction waste recycling company in Liverpool in conjunction with social housing providers The Riverside Group and Plus Housing Group.

"We’ve been looking at the waste issue for about five years and have been doing much more recycling from our sites. Landfill costs are increasing, and by 2010, I would think it will probably cost about £60/t to dispose of waste rather than today’s £35/t. So it makes sense to reduce the amount of waste going to landfill. And the two registered social landlords (RSL) feel they are partners with us, and that is an interesting development, so it’s something we may look to develop in other areas," says Sellers.

Recruitment drive

The company is serious about its social housing work and has recruited three senior people who have worked for an RSL and who understand client liaison and the issues surrounding this type of work.

Getting the right people is a big part of Seddon’s success, Sellers believes. "We have recruited people in middle to senior management to support our partnering approach and the frameworks we are involved in. Recruiting people is not too much of a problem, but getting good trades people can be difficult."

That’s one of the reasons the company believes so strongly in apprenticeships. It has more than 160 apprentices and in the past 50 years it has trained more than 2,000.

"We have long associations with local colleges, and apprenticeships are a part of our traditions and ethics. There are a lot of people who want to become apprentices – I just wish more companies were doing it," adds Sellers.

Despite its divergent businesses, Seddon has managed to retain the feel of a family-run firm. "I would expect that our turnover will increase, but I would hope that we don’t lose the personal touch," he says.

Turnover increased by about 15% last year and the firm is aiming for controlled, balanced growth. "We’ve recognised the need to be innovative and forward-looking and we need to be at the forefront. We want to keep the traditional values of the business but to integrate that with a more modern approach."

[Contract Journal, 22 November 2006, pp 26-27]