High-flying the nest

He had success, security and the kind of JOB most would give their right arm for. But Ian Cannings quit his executive role at Wates, and now he's ended up as a big fish at little contracting firm in Kent.

The question is, of course, why?

He's no job-hopper. After graduating in 1987 from University of Westminster with a degree in building technology and management, he joined the now-defunct John Lelliott Group, progressing to project manager, and leaving when the firm folded in 1993.

He joined Wates then, and in 1994 became contracts manager for the new interiors business. In 1996 he took over as MD of Wates Interiors, presiding over the growth in turnover to £90m. He also sat on the Wates Group executive board.

Jobs-for-life may be disappearing, but Cannings certainly seemed set for a secure ride to retirement. Then, in the spring of this year, at the age of 39, he left. Wates says only that he left "by mutual agreement". He says he was bored.

"Once it gets to that size an entity kind of runs itself. You do business the way you've done it before… Making things happen in a large organisation is difficult.

"I started to think about myself. I didn't usually do that. That's when you know you are destined to leave," he said.

No small victory
Apex Contractors will be quite a change of scene for Cannings, who is married with two daughters. Apex is small, turning over approximately £10m per year and employing around 120 people. The head office is a frugal affair off a side street in Welling, Kent.

Whether Apex represents a change of pace, however, is another matter. As Construction Manager reported in February, Apex made the Sunday Times Fast Track 100 list for the second year in a row this year, having grown 70% on average since 1998.

It would be difficult to overstate what a potential coup this is for Apex. (In case you're wondering, the question was asked, and Cannings says he has not endured a significant drop in salary.) The bulk of Apex's activity to date has been in insurance reinstatement and pub fit-outs. They've also dabbled in providing third-party logistics support to major projects. Now it wants to break into the major interiors business, even crossing the Thames into the City to take on bigger, established players. So Cannings brings experience of growing an interiors business. Can he do it without a big brand behind him? Or without the investment clout of a big firm? Apex chairman Kai Midgley is confident. With his experience, Cannings is a key piece in the Apex jigsaw. "Employing Ian for us is almost like buying a company," he said. For example, Cannings has plenty of contacts. He says he has already met with 30 former clients to sell the concept.

What is the "Apex concept"? Cannings' strategy, as director in charge of the interiors side, is to concentrate on profit, not turnover. "You have to leave your ego at the door. Construction people sit in bars talking turnover. We're going to focus on year-end results. I've already turned down work because I knew it wouldn't be profitable. We'll do a smaller number of jobs. Good clients don't mind you making a buck."

He also aims for direct communication with the "coal face", something that would have been impractical at the head of a national, £90m organisation. "I don't want anyone between me and the sites," he said. He wants Apex to be more involved with clients pre- and post-construction. He wants Apex staffed with quality people.

Unwieldy wates
But wasn't Wates like that? After all he was part of the big culture change of the late 1990s that saw Wates grapple with its frozen, hierarchical culture (see Construction Manager, May 2003). Hundreds of Wates staff went on three-day workshops to get in touch with their feelings and to learn how to talk more directly and honestly among themselves. And the results have been impressive: growing profits, big framework deals, a diverse client base.

For Cannings the picture was not all rosy. For one thing, Wates' size made it hard to steer.

"Wates has a superb set up. But consistency is down to individuals. That's very difficult to control in a large organisation." He already feels the difference, perhaps like the difference between driving a BMW and a blancmange.

The major contractors are very samesy, very da de da. They profess to innovate, but they don’t

Ian Cannings

"The difference between 'doing' and 'saying' is much smaller. You can describe the venture in one meeting and it's done, through, everybody knows what's happening."

For many, leaving such a secure, prestigious position would be a frightening prospect. He says he wrestled with it for a year before expressing his intentions. Directors cannot just walk out the door… usually. His departure had to be kept quiet until the last minute, which Cannings said was difficult.

"There's no release. You can't say 'I'm doing this because I'm leaving'. Especially when you're recruiting new people. Ultimately it feels like you're playing with their lives."

"The only way you do it is to carry on as before. You owe that to staff. Otherwise, chaos ensues. You can't stay in a position with people knowing you're going."

Cannings has one piece of advice: take time out before you jump into the next post. The temptation to scurry into the safety of the next assignment is strong. He says leaving Wates was like emerging from a kind of cellar.

"When you work for someone for 10 years, as dynamic as it is, it's still one company. When you leave you realise what's out there."

He went to a dozen interviews, both formal and informal. He was disappointed with the major contractors he spoke to.

"It's quite an indictment on the top 10," he said. "Very samesy. Very da de da de da. They profess to innovate, that you'll be challenged, but they don't, really."

The apex attraction
But he disregarded his own advice. A month into his new life he read about Apex in Construction Manager and called them up. There was an instant bond. He joined in July.

Cannings isn't the only high-flyer to fly the Wates nest. John Silk, a director at Wates Interiors, followed long-time associate Cannings to Apex in mid-September.

The Apex story is an inspiring one. Back in 1985, at the age of 24, Kai Midgley founded a roofing company with a family friend who shafted him by disappearing when the firm faltered. Some debts were joint and Midgley was personally in the hole to the tune of £160,000. He paid off the debts by starting another firm, farming out small refurbs to any subcontractor who'd still work for him.

So Midgley geared Apex toward recession-proof business in the form of refurbishment work. He appointed a non-executive director from the banking sector to ensure some sound financial management. He won't work for another contractor. He knows what they're like.

The strategy works. Apex has 116 people, a turnover of nearly £10m, an A2 Dun & Bradstreet credit rating, and £750,000 in the bank.

Now Cannings' job is to take Apex to a new apex. He wanted either to join with someone like Apex or start his own company. Apex won out because he'll become a shareholder in a few years, providing he delivers. It also has the credit rating and admin procedures without which he'd struggle to get started. Finally, he'll be close enough to the action to ensure his strategy is implemented. As a man who wants to be close to the action, he won't be disappointed.