Wilkinson says younger leaders take more risks, but not unnecessary ones. “That is just humanity. When you are starting out, you will risk everything.”
He learned from watching his father’s approach that he did not want to emulate him. “Watching my father and how he conducted his business, you lose sight of the forest for the leaves, and you end up less successful because when you are focusing on very small part. You might be doing it very well, but I would rather see the big picture, and if you lose some off the barrow, it is no big deal.”
Barlow says leaders today must be more transparent to gain the engagement of their staff, and that is inherently a risky approach to managing people. “The old way is not to share too much information with employees, especially financial information. Now you need to tap the intelligence of the whole organisation. Don’t pretend you have all the answers: share, be open with the financial position – transparent, direct and honest.”
With the risk of greater transparency comes reward, he says. “Hopefully, you attract and retain better talent because they are part of something big, not a monkey on a factory line. It’s crucial if yours is a company that’s future existence relies on innovation – and I would argue that is all companies: if you can‘t adapt, you fall behind.”
Younger leaders typically take more financial risks, aware that they still have time to start again if they suffer a financial catastrophe or setback. “Any money I have ever earned in Kogan I have reinvested. I have my balls on the line every day. I am 29 and happy to take those risks. Our business is changing the retail landscape in Australia, and I am so excited by it that I am investing everything to ensure the success of the business.
“But I wouldn’t make an irrational decision just to give it a go. Younger people know how to attain info faster than older people and that means better decisions.”
For example, Kogan will decide on the number and size of flat-screen TVs to order based on checking the statistics on the number of online searches consumers have made.
Kogan recalls: “Our director of IT used to work at an engineering firm. The CEO of that firm would get all his email printed off each morning and walk around the office putting them on people’s desks. It is not only wasting paper; it is not understanding that technology works, not understanding that it is reliable.”
Kogan’s leadership is as deeply entrenched in technology as his product sales are. By having every employee set up with technology to work from the office, home or a coffee shop in Belgium offers a flexibility that keeps his staff loyal, happy and productive.
It also makes them accountable. “Within a second, we bring up an email and say, you said you were doing this or what did we agree on with that company. Older-style leadership needs to go through the files. In our company every single communication with customers is logged – phone, live chat, email – and managers constantly review it and discuss what can be improved to improve the customer experience.
“Information is king! The more information you have, the better your decisions.”
Technology underpins the innovation that Kogan believes has delivered his company’s 600% revenue growth. It obviates the need for stifling processes and form-filling procedures that kill creativity. “All staff members are taught go against the grain, to swim upstream and question everything. We need innovation on daily basis. There is always a better way. So we have a huge amount of ideas flowing through our company on a daily basis.
“Kogan today is completely different from 12 months ago. That is why we had 600 per cent growth in last year. If we were content, we would be a $20 million company, not a $200 million company.”
Wilkinson says technology is less important in managing his 55 staff. “I would say I am more traditional than I should be. There are two sides of me. I do ask, how does this technology really affect your bottom line? In a multimedia company or in advertising, they have to be very attuned. But for my business – in building and development – other than a marketing department, which does amazing things with 3D technology, it doesn’t really affect me.”
At the big end of the construction industry, however, technology is reaping dramatic change. Leigh Jasper and Robert Philpot ($70 million, aged 38 and 39) have made their fortunes in their online document management system, providing a way for builders of big infrastructure and mining projects to share up-to-date plans and specifications. Leadership in the global construction industry is as technology-dependent as Kogan.
Kath Walters is the editor of LeadingCompany and an award-winning journalist of 15 years’ experience. Kath was previously a senior writer and editor at BRW magazine covering management, strategy, finance, entrepreneurship and venture capital across all industry sectors. In 2006, Kath won the Citibank Award for Excellence in Journalism (General Business). Follow her on Twitter.
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