Galloway and Macleod aim to double turnover in three years

In 2009, Galloway & MacLeod’s Chairman, Ralph MacLeod, approached Scottish Enterprise (SE) looking for support for his ambition to double turnover in the next three years. Two years on and targets are on track, and an exciting new project is underway to transfer ownership of the company to the employees.

The company

Running as a family business since 1872, Galloway & MacLeod manufactures and supplies animal feeds and farm inputs including fertilisers, seeds and crop protection to farmers across the UK and Ireland. The company follows a unique concept called ‘Intelligent Agriculture’ which enables farmers to produce more food with a lower environmental impact. The company also serves the country and leisure market with an on-site Feed Superstore.

Galloway & MacLeod is now on course to become entirely employee-owned.

The challenge

When SE Account Manager, Martin Sharman, was assigned to Galloway & MacLeod in 2009, the company’s Chairman, Ralph Macleod, laid out his vision to increase turnover from £10m to £20m in three years.
 
In order to achieve this it was clear that organisational development would be required, as would succession planning as Ralph was working towards a handover of the business. “We wanted to transfer the company from being family-owned to employee-owned,” says Ralph, “and are now very positive about the change process, involving staff at all levels of the business.”

The solution

For Martin Sharman this meant immediately engaging the company in a Strategy Workshop to produce a three-year project plan, starting in January 2010, outlining exactly what needed to be done and how it might be achieved.

This mapping exercise identified projects that would be crucial in taking the company forward, as well as the resources required, and put in place a robust project management and reporting process.

“Galloway & MacLeod quickly identified ‘project owners’,” says Martin, “who would take ownership of individual key projects and initiatives and see them through.”

In addition to this initial support towards achieving the company’s ambitious goal, SE also provided advice on organisational structure with a view to the imminent change of ownership.

“SE has been a great catalyst,” Ralph emphasises. “We already had a number of ideas floating around when SE came into the business, but what they have done is help us focus and supply a valuable outside resource when needed.”

Specialists from SE subsidiary, Co-operative Development Scotland (CDS), have been brought in to advise the company on the change-of-ownership initiative, with SE also providing funding.

A comprehensive Training Needs Analysis was conducted to assess skills required within the business as it grows, and a plan has been produced to outline training needs.

“We are now confident,” says Ralph, “that we’re not charging ahead without the appropriate structures in place, and are still concentrating on our existing customer base as well as having a clear focus on future opportunities.”

The impact

Galloway & MacLeod has achieved its Year 1 sales target of £13 million, and interaction with SE is proving very successful. Monthly reviews enable the leadership team to assess progress and ask for advice as and when required.

The company is now looking at broadening its horizons by supplying pedigree farmers in England and potentially, using SDI and SE market research, in the Republic of Ireland and mainland Europe.

The transfer of the business to employee ownership is well underway, with a new Board of Directors already appointed. Turnover targets are on track for year 2 with further employment expected.

Martin Sharman, SE Account Manager

“Under Ralph, the business has become innovative and a leader in supplying services to farmers in Scotland through ‘Intelligent Agriculture’, backed up by dedicated and skilled staff. The company has been open and driven to change, and accessing SE support to achieve their aims. Through the Account Team of specialists, including CDS, we are able to focus our support on the initiatives that are contributing to the company’s success.”

Ralph Macleod, Chairman, Galloway MacLeod

“SE is a very important partner in our business right now, and has helped us a great deal. I cannot say enough about the value they provide. It’s not just about writing cheques, it’s about businesses benefiting from access to expertise and knowledge-base.”

More on employee ownership from Co-operative development Scotland