Manson targets new markets

By Ian Fraser

The Herald

June 25th, 2007

SANDY Manson, who took over from Patrick Machray as chief executive of Scotland’s largest independent accountancy firm Johnston Carmichael earlier this month, has outlined his vision for the firm.

In his first interview since stepping up to the chief executive’s role on June 1, Manson said he will be seeking to expand both the Aberdeen-based firm’s footprint and its range of services.

Manson said Johnston Carmichael, founded in Elgin in 1935, will increasingly target clients south of the border, but without opening offices there. He said: “Our particularly Scottish brand is an asset as we move into new markets in this way.

There are some outstanding opportunities for a Scottish-based business.” He said that Johnston Carmichael will initially focus on its core sectors – hospitality and leisure, construction, energy and food – as it pushes into the London market.

He said: “The world is becoming flatter and technology now allows us to be innovative in servicing clients effectively in markets where we don’t have offices. What clients increasingly want is our expertise and a partner-led service and these differentiators will be critical.” He said the firm was recently appointed as tax adviser by a London-based hotels group, which he believes demonstrates the model can work.

Manson added that the firm, where he has worked since 1991, is also considering branching out into new services including consultancy and IT.

When Machray retired at the end of May 2007 his role was split between Manson, and James Campbell, an existing partner in the firm, who took on the role of chairman. Campbell chairs a seven-strong policy team while Manson handles the strategy and the day-to-day management of the 37-partner and 400 staff business.

He said he is currently visiting all 10 of the company’s offices – Aberdeen, Edinburgh, Elgin, Forfar, Fraserburgh, Glasgow, Huntly, Inverness, Inverurie and Perth – and wants to spend his first few months “in a listening and observing mode”.

Manson acknowledged that Machray, chief executive for 16 years, will be a tough act to follow. Asked if his style would be different, Manson said: “My style is that I want to increasingly empower people within our practice.”

He said the firm – which in a couple of weeks is expected to reveal that its turnover has risen to about £20m for the year to May 2007 (up from £18.5m last time) – has no intention of resting on its laurels.

He wants to continue to build up its presence and reputation in the central belt, where Johnston Carmichael opened start-up offices in Edinburgh and Glasgow within the past five years.

Manson said: “We will continue to invest in the central belt in terms of people in terms of systems, offices, marketing and getting the brand out.” He also said the Edinburgh office, which already employs 45 staff and is “the fastest growing accountancy office in Edinburgh” is poised to move to new premises.

Manson added: “We have absolutely no intention of doing anything other than to grow our business and of doing so profitably.” He said that further acquisitions have not been ruled out. “But they would have to be with individuals who share our vision and values not least of all the need to be passionate about the quality of service delivery to our clients”.

He sees his role as chief executive as being to remove obstacles. “We are particularly interested in working with businesses that we can help grow, help develop, help reduce their tax bill, help define their strategy, help with their systems – businesses who like ourselves are growing, they’re developing. When an owner managed business is thinking of changing adviser, we want to ensure we are the name they’re thinking of.”

He said that the ethos of the firm is “We want to understand your business” and said he keen for partners to demonstrate their sectoral knowledge by speaking at industry events. Last week Manson spoke at a major food industry event at Ingliston, near Edinburgh.

Manson admitted that the biggest challenge the firm faces is the so-called war for talent. “It means we’ve got to be increasingly innovative in how we develop our business and how we attract and retain people.”

However, he believes that Johnston Carmichael is capable of offering a more attractive career option than a Big Four’ firm. Manson said: “Partner earnings are a very important statistic for the Big Four, but what we can offer our people is empowerment and the opportunity to make a significant difference to a business that is constantly developing. In particular, we can enable those who make a significant contribution to our business to become owners of this business and the next generation of leaders.”

He believes the firm is different because it offers a genuine, partner-led service. “These are not just fine words, we actually back them up.”

Manson said that to become a partner in Johnston Carmichael, a candidate must share the firm’s core values, which Manson defines as “integrity, passion for the business, constant self-improvement and learning The important thing is we want people on board who are not just looking for a comfortable ride but actually want to grow the business and take it forward.”

A graduate of Edinburgh University, Manson worked at the global accountancy partnership Arthur Andersen from 1982 until 1991.

He worked in Andersen’s offices in Edinburgh, London and Zurich. Other alumni of Andersen in Scotland include Fred Hallsworth, Eric Hagman, Brian Souter, Eamonn Rice and Keith Cochrane.

Johnston Carmichael ranks within the UK’s top 25 accountancy firms and was named as Accountancy Age’s UK large firm of the year in both 2002 and 2004. It is a member of the Leading Edge global alliance of accountancy firms which last year boosted its turnover to $1.33bn (£668m).

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