Young Pattison swims with American retail giant
Grant Pattison, CEO and member of the Social and Ethics Committee of Massmart Holdings, is one of very few executives who could successfully steer a retail empire into securing a merger deal with a R16.5-billion offer from a global retailer.
Pattison played a fundamental role in streamlining the management of Massmart into a more focused entity that led to the firm offer from listed United States based conglomerate, Walmart to acquire a 51% stake in Massmart.
In a driven and resolute manner, he provided the executive leadership necessary to navigate the Massmart-Walmart integration, which was ultimately approved in all relevant jurisdictions, including the Competition Appeal Court, on 9 March 2012.
During the process, major concerns were raised, among them how its logistical capabilities might increase imports into South Africa with a procurement shift away from local towards foreign low cost Asian producers which could in turn result in job losses, closure of SMMEs, and with a possible negative influence on the development of local businesses.
Pattison says, “Interventions from labour unions about securing employment was the major concern. But we’ve reached satisfactory agreements, working closely with the Department of Industry and Department of Agriculture, and finally with sanctions of the courts, effectively secured the merger.”
It takes a strong and focused approach to ensure the acquisition and implementation of merger benefits and governance protocols associated with Walmart. Pattison’s total commitment in applying the highest standard of ethical conduct in dealings with all stakeholders is what facilitated this intricate process.
Pattison was born in Bulawayo, Zimbabwe, of SA parents and went to the University of Cape Town (UCT) on an Anglo American Group scholarship. He graduated in 1992 with a BSc degree in Electrical Engineering, after which he was employed by Anglo American as a management trainee. After three and a half years with Anglo, he moved to Monitor Group as a consultant.
A forward-thinking Pattison started his Massmart career in July 1998 as Executive Assistant to the CEO for two years before being appointed in 2000 as Managing Director of Game Stores and being elected to the Executive Committee.
In 2003 he was appointed as Group Commercial Executive, on 7 December 2004 he was appointed to the Board, and on 1 July 2005 took position as Deputy Chief Executive Officer. In July 2006 Pattison became Chief Executive Officer Designate and took over from Mark Lamberti as CEO of Massmart Holdings on the 1st of July 2007, nine years after joining the group.
With 14-years experience working for Massmart, Pattison has a solid understanding of the business and has played an essential part in forming and leading its long-term strategy.
“As CEO, my days are very different from each other and I have no routines. I have to integrate my personal life with my career, which means I am always on the job,” says Pattison. “As a leader I do things no one else can and have to be very disciplined and manage my time as things happen. But I balance it nicely with diary discipline and strict planning.”
Pattison had been divorced for several years, and is very definite in setting out times to spend with his 10 and 12 year old daughters, especially when having to travel often to the USA for business. “My moments with them are the only times I don’t have to manage anyone,” he laughs, “The two girls are then in control, I just do what they demand. But I love our time together, it’s invaluable and treasured.”
Pattison was appointed as Co-Chair of the Consumer Goods Council of South Africa in 2009 and played a fundamental role in streamlining the management of the foundation. This resulted in a more focused and established organisation that strengthened the future quality and quantity of service to its members and customers.
“Leadership and business ethics to me, mean I have to be authentic, I always have to be me. One can only play and act out a certain persona for short times,” Pattison points out. “It’s better to be consistent in one’s character, to find value in that with one set of principles and beliefs across the board, in one’s business and personal life. Authenticity is key in staying focused and on course.”
His philosophy of leadership is to lead in the best way applicable to each individual as each one is different, “So, my leadership deliverables change and I have many leadership styles. But I’m always available, I ask questions, I listen, and offer guidance and support. Sometimes my input is needed in more depth, in which case I facilitate the process with clear thought and a bunch of tools.”
Leading people always comes with a set of challenges, “It can really become complicated and one needs to act as an expert in dealing with people. Individuals differ so much and it’s difficult to predict how they would behave, or what’s going on in their lives, or try to imagine what they think.”
Pattison is determined to use calculated methods, systems and models appealing to employees in improving their daily activities to reach peak performances. His own notable performance comes from various influences throughout his life.
“Growing up I always wanted to be an engineer and I always tried to figure out how things work. My father was an engineer and in my mind I always thought I would follow a technical route, maybe only become a chief engineer on some mine,” remembers Pattison.
“But my life changed tremendously when I moved to Anglo’s head office as a management trainee. I am hugely privileged to have met powerful people specialising in business strategy and commerce. I met many mentors through the young persons’ committee of Anglo American, people like Bobby Godsell and Clem Sunter who taught me so much.”
With each encounter with these big achievers in life, Pattison tried to climb into their minds. “And now today, each time I deal with a specific challenge in a certain scenario, I think of the person who champions that area, carefully considering what they would do.”
Under Pattison’s leadership, Massmart Holdings, among various other accomplishments, achieved Top Performer Status in JSE Socially Responsible Investment (SRI) Index, ranked top of JSE retail sector in FM/Empowerdex 2011 Top Empowerment Companies Survey, and ranked in the top 10 of Ernst and Young Excellence in Annual Reporting Awards in June 2010.
Pattison has a passion for retail business which could be one of the reasons for the company’s various achievements, “I love retail. I’ve worked in consulting and mining, which was okay, but retail is very very fast which excites me. We buy a lot of stuff from various suppliers and sell products quickly to consumers who know what they want. I admit, the process is a bit addictive,” he laughs with candour.
Massmart was founded in 1990 with six Makro stores. Today it is the second-largest distributor of consumer goods in Africa, with more than 32,000 employees operating in 12 countries including South Africa, Botswana, Ghana, Lesotho, Mozambique, Namibia, Nigeria, Swaziland, Tanzania, Uganda and Zambia.
Massmart is divided into four divisions, Massdiscounters (Game and DionWired), Masswarehouse (Makro), Massbuild (Builders Warehouse, Builders Express, and Builders Trade Depot), and Masscash (CBW, Jumbo Cash & Carry, and Shield). Each division has a dedicated management team focusing on a particular retail or wholesale format, merchandise proposition and customer base.
Since the merger with Walmart, several local suppliers were provided access to international markets, suppliers that were unable to get into distribution networks controlled by SA’s big retailers. One of the various ways in which the group measures its success, is by the number of Massmart facilitated African supplier listings in other Walmart markets.
Thought leadership, individual and collective operations, and close collaboration with executive management is what drive this group’s performance. “Massmart has been through a lot of dramatic changes, and now being integrated in the global Walmart world, the challenge to lead people through this adjustment is enormous. And at the same time I also have to lead myself as my own position went through some transformation,” he adds with a grin.
To further ensure that Massmart has a robust and productive leadership team, the group offers a Leadership Development program through the Massmart Corporate University for those dedicated to stay with the group and geared for life-long learning. Through the group’s leadership forum, the executive development and leadership training enables the sharing of ideas and experiences to meet various industry challenges, and to improve understanding of global competitiveness.
Pattison is excited about life and leaving a legacy. “In all our functions and interactions, we leave a fingerprint behind, we leave some sort of influence or impact. Therefore each interaction is important and valuable, and needs to be carefully considered,” says Pattison. “I want to leave everything I touch better. I would like to see myself in my children too, the good and the bad, which provides two types of learning for them.”
Everything Pattison intended for his life never came to light. “What I planned and what happened were two different things, which made me a little bit cynical about making plans. My fundamental philosophy now is, if you want another opportunity, do your current job the best you can, and do it better than anyone else in the world. And if you’re good, the opportunities will be plenty.”
Which is exactly what happened with the Massmart-Walmart merger. In previous reports, Pattison said it has taken ten years of preparation for Massmart to pave the way to be bought by a global player. Pattison decided to run the company in such a way, that when a big retailer decided to come to South Africa, they would be well positioned in the markets.
When Walmart’s interest in SA started three years ago, Pattison thought they would acquire stakes in food retailers Shoprite or Pick n Pay. Pattison immediately recognised their disadvantage and decided Massmart must also enter the food retail space, big time and quickly. Whether that was the deciding factor for Walmart choosing Massmart, nobody knows. But the fact remains that Pattison and his team were duly prepared.
With this outlook on life and business, he honestly does not know what lies ahead in his future, as for sure there would be many prospects. But Pattison will be ready to take whatever life presents with both hands and run with it. “At some point my career at Massmart will end. Luckily I am still quite young and another bigger and better opportunity for maybe just around the corner. Who knows?”
SIDEBAR
An engineer to last…
Grant Pattison may be a very successful retail executive and enthusiast, but he will always remain an engineer with a technical interest by heart. “I always fiddle with stuff around the house, fixing everything,” he says. “I also drive the IT guys at the office nuts just because I always want to install and fix everything myself.”
Pattison owns a lovely home at the Vaal River, “There’s no place that makes me happier than spending time there on my boat and looking after the place,” he says with twinkles in his eyes. “Believe it or not, I like the maintenance side of it the most, fixing the lawnmowers and boat engines.”
“I also play guitar and always set out time for that, it’s soul refreshing and enjoyable. But maybe not to those listening to me,” he chuckles in afterthought. “I also always try to stay active, I swim, play squash and enjoy a good round of golf.”
The Business Times Rich List, which was released on Sunday 12 September 2012, used publically available information about JSE-listed companies to establish which executives received the best overall pay package for the last financial year.
According to the list, in 2011 Pattison was second with a total pay package of R90 million. BHP Billiton’s Michael Yeager received R115 million, the best salary in South Africa. BHP Billiton CEO Marius Kloppers was third with R89 million.
Word count: Main: 1765 | Sidebar: 235 | Total: 2000
Written for: Capemedia | Leadership Magazine April Issue (513)
Editor: Lindsay King
Deadline: 10 March 2013