Apprentice-inspired search puts young talent in charge at KHK

QS and project management firm KHK Group has set up a management board to oversee the running of the business after running an Apprentice-style competition among younger members of staff.

The firm called in a management consultant, who interviewed seven potential candidates for the board and set them tasks. The consultant then passed his recommendations on to the firm’s main board, who then decided on the three successful candidates: Toby Wait, 37, Simon Craven, 34, and Ben Tooley, 33.

The management board will be headed by 34-year-old existing KHK director James Morris, who joined the firm a month after it was formed, in July 2000.

Graham Kent, one of the three KHK founders, said the founders were keen to set a structure for the future growth of the business.

He said himself and fellow ex-MDA bosses Richard Houghton and Jim Kelly wanted an independent view on the talent within the firm. “We decided to distance ourselves from personal contact with the people considered,” he said.

Kent said the quartet would run the business on a day-to-day basis, overseeing recruitment, staff retention, profile raising of the business and project delivery and this would allow the three founders to concentrate on growing the business.

Kent said: “As and when we are required we will help the board with particular clients or resource issues. Other than that they will be in charge.”

Kent said the process underlined the firm’s philosophy and flat structure. He said: “Everyone has opportunities here. We are a meritocracy. If you are prepared to work then you can flourish.”

Morris said the new board was an important step in the evolution of the firm, whose turnover for the year to 30 April was £5.8m. “We are a growing business.

For the next five years we needed a bit more structure to drive it on. This is a natural progression for us.” He said calling in the independent consultant “reaffirmed our thoughts” on the successful candidates.

Everyone has opportunities here. We are a meritocracy.

Graham Kent, director, KHK Group

Wait, who joined the firm from Mowlem, described the tasks set by the consultants as “quite open”. “A lot of it was about how we saw the company grow.” Tooley added: “It enabled us to speak our minds about the business.”

Wait said the three new board members were excited about the challenge. “For us it’s a great opportunity to take the business forward and expand it.”

Kent said the 54-strong firm was looking to set up a new office in the Midlands, possibly via an acquisition, to add to its Leeds office.

Kent and Morris stressed that the business was very client-focused. “We got some stats through recently showing that 87% of all work comes from repeat business,” Kent said.

He added that the firm was offering higher end services to clients such as advice on assembling complex sites and assisting on property disposals.

He also said the firm was now working on public sector work such as PPP schemes and social housing work but remained cautious about the sector:

“You can struggle to make sensible margins on public sector projects.” Kent added KHK had seen its core markets such as private housing and offices remain strong.

“We expected the housing market to slow down but it has steadied. Commercial has come back and other sectors such as hotel and leisure have grown.”

The firm posted pre-tax profits before director emoluments of £1.6m for the year to 30 April 2005. Turnover is set to hit £7m next year.