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PROFILE
stepped aside as MD to become Chairman. Since
Scott started in the family business in 1986, annual
construction turnover of the company has grown
from $6m to $2.4bn. In 2001, an external MD was
appointed, with Hutchinson believing the scale of the
business meant it was a risk to rely on the skills within
the family to provide a successor. As Chairman, he
describes himself as responsible for ribbon-cutting,
sod-turning, introductions and political dinners. This
leaves MD Greg Quinn to handle operations.
The company has an usual management arrangement,
preferring a flat open structure to the typical ‘pyramid’
organisational hierarchy. 37 different internal teams
report to the MD, with each team being responsible
for engaging their own clients, setting their own pricing
and managing their own budget. Scott believes this
allows market forces to feed through to each team,
making them autonomous, and ensuring each survives
or falters on its own merits.
Hutchinson’s has a rule that anyone within the
company can phone any other Hutchies person at
any time, generating an open culture which allows
problems to surface and be managed quickly.
Hutchinson’s is also noted for the strength of its
balance sheet, ensuring sufficient cash is held at all
times to ensure all sub-contractors can be paid, even if
every client was to default.
The company is currently held in equal one third shares
by Scott and his parents, with him as sole inheritor. His
intention is to place his shareholding in a trust structure
as protection from the possibility of divorce in future
generations.
Scott’s final tip to the Symposium audience was to
reinvest money back into the business, and always
think long term.
Scott appeared at the 2018 Hotel Symposium
courtesy of HLB Mann Judd Brisbane. If you require
accounting and/or advisory services in regard to your
family/business succession, feel free to contact the
HLB Mann Judd team on 3001 8800.
Article by Andrew Buchan - Partner, HLB Mann Judd
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