Bob Willott on the bottom line

BOB WILLOTT

The former McKinsey management consultant brought in two years ago to rationalise AIM listed marketing group Media Square under its executive chairman Roger Parry will take over as group chief executive next January.  Parry will then become a non-executive chairman and thereby appease those shareholders currently baying for his removal who might otherwise have criticised his dual role.

Peter Reid’s appointment as chief executive is a curious one that leaves a number of questions unanswered.  There is no doubt that a lot of change has taken place at Media Square since Parry assumed the chairmanship in 2007, and hopefully time will prove that the group is in a much better condition as a result.

Reid’s role in cutting costs and rationalising business units is bread and butter to a management consultant who typically moves on to pastures new thereafter.  But those that eventually assume senior management roles do not always bring glory to the post.  

First, they have to reap the rewards (or lack of) from their rationalisation labours.  Costs may be much reduced but business building and skills development may not have received the same degree of attention they deserved.

Secondly, the skill set required to motivate and manage an ongoing business is not always a natural part of a consultant’s armoury. For example, according to Companies House 35 year old Reid has never held a board directorship in the UK before.  And he doesn’t seem to have had first hand experience of managing the day-to-day operations of a commercial business over a long period of time.

Of course, stars can appear from nowhere and hopefully Reid will prove to be just the person for the job.   But in a group that arguably had accumulated too many second hand and second rate businesses, shareholders might feel more reassured to know that the new boss has actually run a marketing company successfully before.

© Fintellect Ltd