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Interview with Rodney Yeadon, Managing Director of Alpha Management
( 18 / September / 2008 )
Rodney Yeadon came to Prague in 1991 to determine whether his previous employer, PA Consulting Group, should establish a permanent presence in the former Czechoslovakia. Besides giving PA a positive answer, Rodney set up his own company, Alpha Management, to offer local services for foreign companies needing support for investments in the region. To date, Alpha has worked for more than 100 foreign companies ranging from the very large, such as Tyco, Terex and Bombardier, to smaller businesses employing a handful of local staff. Alpha's services cover all aspects of inward investment from the business-concept stage to post-implementation. These services include location studies, establishment of companies with full support, project management of new manufacturing facilities, recruitment of management and workers, training, management of grant applications and dealing with all local bureaucracy.
Recent years have seen the emergence of opportunities to provide ongoing management support to foreign-owned local companies. Clients are asking what comes next and how they can do better. These issues are approached through Alpha's ‘one-page strategy’ and performance improvement products. Alpha is building on it success in the Czech Republic with a new office in Wroclaw, Poland, and a branch in Brno.
Why did you decide to come to the Czech Republic?
After taking early retirement from PA Consulting Group, I felt that a career in consultancy at a high level around the world could be applied to enthusiastic Czech companies and that the opportunities for Western companies in the region were enormous.
You have been involved in the Czech Republic for some 15 years. Will this continue?
We expect to stay in the Czech Republic as our base location but will target companies that are now looking at southern Poland, Slovakia and Romania, where our experience can be applied to good effect. Czech employees are excellent. We have a small team of dedicated
and enthusiastic employees and our clients are also very complementary about the Czech work ethic and productivity. Of course, good selection, training and clear targets and rules are important.
Which of your projects could serve as examples for other potential investors?
There are so many but one that I cherish is the investment of RB Farquhar in Chomutov. RB Farquhar is a family-owned business located in the northeast of Scotland. In 2002 they took an enormously bold decision to locate a satellite factory in the Czech Republic to tackle the Western European market for their products (complete bathrooms for hotels).
The initial staff consisted of 50 workers and one owner from Scotland. The project has been so successful that after five years and three grants from the Ministry of Labour, RB Farquhar will employ 500 by the end of this year producing 10,000 bathrooms for the UK and Irish markets. The reasons that the project is successful are simple: tight management, an excellent workforce and local suppliers resulting in lower ex-factory costs. Western Europe is still available and the start-up experience means that the business model can be replicated in the Middle East or elsewhere in the future. Alpha is pleased to have been involved in all aspects of the investment project implementation. Small beginnings, huge success!
Do you plan any expansion of your activities in the Czech Republic?
Yes, we have invested in strategy and performance-improvement products that can be delivered locally. We work with colleagues from the UK who are experts in individual fields. Locally, we provide the language and implementation capabilities.
Czech wages are going up. Is this a threat? Are you considering moving eastwards?
There is no threat provided businesses improve their performance and productivity in line with or better than wage inflation. Staff and workers are more productive now than in previous years. Clients looking for lower-skilled operations and large numbers of workers are tending to look elsewhere. This is not a threat for the higher-value Czech business economy.
Unemployment has gone down in most parts of the country. Is there any particular region you recommend to new investors?
No. In fact the reverse is true. It is essential to match the incoming investor's labour and staff needs with the availability in the target location. We are advising more clients as to the optimum location for investment; one current client was so impressed by the negative answer for a site in West Bohemia that he has decided not to build a second factory but to increase his present output by 100% at his existing location in North Bohemia. Each labour requirement needs a careful location study.
How do you see the Czech Republic in five or ten years?
The outlook is very encouraging in spite of possible recessions in western countries. The Czech Republic has a long way to go yet in building upon its educated population and on 15 years of investment and know-how. In ten years the country will be on the same level as any of the other EU states.
What would be your advice to foreigners who are now relocating to the Czech Republic?
As individuals, they should consider that the experience works both ways. Expertise gained elsewhere may not work exactly in the Czech Republic and local people may have different expertise to offer and have the benefit of understanding local realities. It is up to incomers to be grateful for the differences and the new experiences and even if the bureaucracy is a pain from time to time, remember what it was like at home: different but equally painful. Enjoy the experience'
What is your favourite place in the Czech Republic?
The most difficult question is the last one. The Czech Republic is full of surprises but I think that central Prague is my favourite. The changes over the years and the accelerating pace of change are exhilarating. The cultural opportunities are wonderful.