hi everybody our special guest today is Andy Ransom the CEO of rill which is the world largest Pest Control provider

now many people have uh memorable stories about pest related stories whether it's removing you know ants rats uh alligators even from pools

so um Andy let's kick off what's kind of the crazy story you have

oh my word well uh hi n thanks for inviting me along um

look I mean we could probably spend the next hour talking about crazy pest control stories

that's that's that's what we're going to do that's what we're going to do is

okay well you know where where to start I mean uh we were hired by Libya to go and deal with Bubonic plague that that was a bit of a surprise

we uh we've done some work in Australia with mouse plages where we had millions millions of mice to deal with we've had um monkeys in Singapore we've had camels we've had to deal with in the middle East I mean you name it snakes and everything

it's it's um it's a crazy business in that sense

say as you say everyone's got a pest control story

and and um my wife always tells a pest control story about me

um when we were living in in America and I was I was doing the garden one day and I Disturbed a a nest of yellow jackets or wasps as we would call them

and one of them stung me and stung me in the neck and I ran like a scared kid and I ran into the house open the door I then closed the door and I locked it

and my wife was saying what what on Earth are you doing you know why have you closed the door are you expecting them to come in through the door you have they got a set of keys

but that's a sort of you know panic and and uh reaction that pests generate in people

so it it is one of those those subjects that as I say everyone's got an experience everyone's got a story but it is an amazing industry

what are the big drivers of this uh industry

well I think you know somebody once described the business to me as almost biblical you know the pests have been with us since the beginning of time and they will be with us till the end of time and and that that is true you know the pests will always be with us

right now certainly global warming and an increasing temperature of the planet there's no doubt that that is having a bearing

um that is altering the breeding season of flying biting crawling insects

so if if it's hotter you tend to see the the SE seon start earlier and it goes a bit longer because of the the temperature so that's one thing

um regulation legislation the world is is increasing with uh its its regulatory environment that's not getting easier anywhere

um Rising standards

I mean I remember when I used to travel to uh parts of the world years and years ago and I'd go out to dinner and there'd be a cockroach would run across the tablecloth and you'd just flick it to the floor

you wouldn't accept that uh today in in a nice restaurant

so Rising it do it doesn't look these rages they don't look so good on social media do they

they don't look so good in social media and that's a big part of you know

why why do companies uh hire us well they need uh their health protected but they need their reputation protected as well and that that's a key part of what we're doing particularly for the for the businesses

so you know you've got regulation you've got climate you've got increasing standards you've also got Rising middle classes

and in big chunks of the world particularly uh in the emerging markets you've got urbanization the towns and the cities are getting bigger and bigger uh and you've got people with more and more money

why are bigger cities good for you

well it's because um you know if you take rats and rodents for example they go where the food is

um and people go to the cities uh the cities are typically not so clean restaurants put the trash out the back they they they leave it around uh

and rats in particular will find those sources of Food they'll find places to live

so the bigger the cities the the more urban they become the more likely there there to be an attractive place for rats to to come and move into

so that's that's one of the key reasons that um urbanization has an impact quite a big impact on growth in the pest control industry

I heard that in big cities you're never more than two meters from a rat

yeah I think that might be one of those um might be one of those urban urban myths

and there's certainly um some CI that you're probably never more than a couple of feet from a rat but honestly I mean if you take a city like London city where I live um you've got sewers under the city you've got a very very old infrastructure

um you've got restaurants and and waste outside for for rats to to feed on you wouldn't have to look too far to find rodent activity in in London or New York or Paris

but but whether it's you know within a couple of meters I think that might be a bit of a stretch

could you spend a bit more time on the climate what are the what are the main effects of climate on your business

well I suppose to two Dimensions to that if if you think about it

the first one is is the one I've touched on which is the environment um for pests and pest activity

in a world where the planet is warming uh and the seasons are more unpredictable and and Summers tend to be hotter and the winters tend to wetter those are good um breeding conditions for certain types of particularly the insects the flying the biting the crawling insects

so that does have a bearing on how soon in the season do we see see activity and how long do those Seasons go on for

if you flip it round to a more positive um social side of the question in terms of sustainability today most solutions for Pest Control still require some element of chemical treatment

and going forward that will not be the case

we we're increasingly moving in a world of non-tox Sustainable Solutions chemical-free Solutions

um ours is a business that has a lot of people driving around burning um carbon in their in their vehicles we're making changes in that uh Department as well

so on the one side yes it's probably quotes net good uh for demand side of the industry on the other side we're a very responsible uh player very responsible company

so like many other companies we're looking to the environment in which we operate say okay how can we do what we do which is a necessary service how can we do it in a way that has much less of an impact on the planet going forward

the fact that you uh cannot use as much chemicals as you have done in the past does that make your job more difficult

yeah I it's a good question it's a good question

because in in Europe um it's the first part of the world where they put in place a ban on permanent baiting

so historically what you would do a customer your your hotel for example that just called us in and we see okay we can't see any evidence of of rodent activity but to prevent them coming we would put down poisons

well the European authorities say no no no no no you can't do that going forward you can only put down poisons once you have a problem

it's quite an interesting change

so so initially when the industry saw that this was going back a few years the industry said well this is this is this is not good you're going to have rodent problems everywhere because part of what we do is a preventative the prevention of the problem

I think the reality is with those rule changes as they've come through it's forced companies like ourselves to become more innovative

so we've come up with solutions that say okay if we can't put down permanent baiting and poison initially until there's a problem what else can we do

so we've used Internet of Things connected devices we've used technology increasingly now we're using cameras um to identify the problem

once you see a problem then you can put down the chemical Solutions

we're also trying to come up with new Solutions which don't use chemicals at all

being a bit lame here but why why can't you use uh permanent baiting

well there there's two things

one is is you know the European authorities and increasingly California authorities another one who who's looking at it um they're trying to reduce the amount of chemicals that we put into the planet generally

so so there's a lot of chemicals going into the planet and and farm farms in particular use a huge quantity of chemical bait so so that's you know that that's the first thing

and the second uh concern is one of secondary poisoning

so there is a concern that uh if you put down um chemical poisons to indiscriminately not only will you kill the rats and the mice but you could end up damaging other Wildlife birds birds of prey for example that might feed on the uh feed on on the rodent

so you know it's it's well intended and it's in it's um you know we don't oppose it but it does require Innovation and innovative solutions to come up with Alternatives which they're coming but in some cases they're not they're not there yet

what um kind of emerging pest threats are you most concerned about now

yeah I mean like I said you know the the pest have always been with us and probably always will be

I think I think they go in phases

certainly if we go back to the time of uh the Olympics in Brazil um zika was a massive concern and zika is is just one example of diseases which are born and spread by mosquitoes

so I would say if you if you actually look and and go back in time um malaria is responsible for more deaths on the planet since the beginning of time than any other cause more than War more than disease more than cancer

um so things like malaria right now Deni fever um is is significantly on the increase in markets like Brazil you see huge increases in Deni fever

so I think Vector born diseases um remain a big concern and they you know they very serious consequences you can you know you can end up um dying or being very very sick from vectorn diseases

um less dramatic but certainly more topical at the moment you've seen a lot of bed buuck activity in the news

of course we got the Olympics um in in France in Paris this year and last year in particular there's a huge amount of media coverage about the the surge in bed bug activity

is it real or is it because people want to have a go at the French

oh I don't know about the second but but um look I think it's a bit of uh

yes it is real there there is real significant um bed bug activity

I think there's a little bit of media um hype in here as well

I think we've had bed bugs in the big cities for quite some time um but but there's there's little doubt certainly the the number of inquire we've had from customers in the UK in France and callouts to deal with bed bugs is certainly significantly increased

so it's a little bit difficult to say is that because the bed bugs are increasing or is it because of the awareness of the problem it's a little difficult to call that

but you know that that'd be another another good example of of you know the increasing um intolerance of people to to pest activity

what are some of the new technologies that you using

yeah and look we are a really Innovative company and and we think Innovation is really the lifeblood of future growth

and Internet of Things connected devices remote monitoring devices

so these are think of it like um a burglar alarm for pests

so you put down a a monitor and if uh in this case a rat or a mouse triggers the infrared beam we've got activity we know there's activity

we can either send a message back to the organization you've got rodent activity and this is where it is or we can actually deal with the problem uh and kill the road in in situ

so Internet of Things connected devices remote monitoring is the first wave of innovation we we brought through

uh about 18 months ago we bought a a really exciting tech-based business out of Israel which is using the next generation of technology which is cameras camera based technology

micro cameras that are in situ so not only can they see um the source of the problem the nature of the problem the extent and the scale of the problem but they can actually identify using facial recognition the identity of the Rat

so they cannot just say it's it's three rats and this is the activity we've seen they can say it's rat number 12 rat number 17 and rat number 24 have come through this camera um 16 times in the last hour

so you can actually track the behavior and if you can start to track behavior and you can mimic animal behavior you're far more effective and far more likely to be able to solve the problem

so I'd say camerab based technology is is probably the next big thing in um identification of rodent problems and and insect problems

well I have to say knowing one rat from the other uh it kind of uh takes it into a new level

yeah it does

I mean you can sit there and say yeah but what's the point I mean is it really that important that you know it's rat number three and rat number 13

but the fact that we can do it the fact that the technology can can do that it does start to give us new new insights

Andy you are a really really impressive uh deal maker and um you make new deals pretty much every week uh buying companies and and building rent tole larger why why is this important

yeah look I mean apart from the fact I love doing deals and that's that's part of my DNA um we do deals for I guess three reasons

um the first one is it gives us density

so as is as is a network business so the way to think about it if we've got I live in a little town in Kent and and if we've got say 10 customers in the High Street um we'll make a certain amount of money if we had 20 customers in the High Street we'd make a lot more money money

and the reason is we're not then spending all of the time driving from one appointment to the next and to the next

if you can minimize drive time windshield time therefore you maximize the amount of time that you're on customer site providing value added work

so that's the first thing it's about density it's about shortening uh drive time

and therefore it means instead of doing six visits a day maybe a technician can squeeze in another and do seven visits a day that gives you a much uh much greater gross margin

so that's that's the first reason we do deals and a lot of our deals are are density deals

um the second we call it the cities of the future

and so if you look today I mean a statistic I never get tired of quoting is that 50% 50% half of the world's Pest Control takes place in the United States of America

the other half of the world's Pest Control Tak takes place in all of the other countries and cities and towns added together it's a remarkable statistic

well if we fast forward 50 years I don't think it's going to be 5050

the growth in the big cities and we talked about the importance of of urbanization but the growth in the big cities particularly in China in India in Brazil in Colombia there's there's a there's a lot of cities that in the next 10 20 30 40 50 years the growth in those cities is going to be very very significant

so our our strategic model says hey look if we can identify the cities of the future and we can get into those cities now typically through acquisition and then we can build the density then in 10 20 30 40 years we're going to have a series of very very dense very very profitable powerful positions in the biggest cities in the world

so that's the second reason we do deals is to try and pick those cities build early buy the best pest control business make it rent to kill

the third reason we do deals is is capability and Technology

I gave you an example a minute ago we bought that business in Israel

sometimes we'll buy a company where they've already got the technology

so th those are the three the three reasons

what's the secret to making a good deal

uh well yeah that's a that's a that's a big discussion as well isn't it

let's just start I think first off strategic alignment

you know I always always say you know you should be really really strategy is a big word but you know are you really clear um where you want to be which which markets you want to be which Services you want to offer which Industries you want to serve

are you clear how you want to grow

um if you've got a clear strategy and we've talked about you know cities of the future and we've talked about density building so that's the first thing is the potential acquisition on strategy or is it yeah is it a bit of a stretch is it a bit so that that's the first point

um second I'd say look I'm a I'm a retired lawyer I know I was an m& lawyer as well and I would always say detail detail detail

you know this is this is uh so critical that you do your due diligence you do your preparation you do your planning and it's thorough and you don't get seduced by the process

a lot of people get halfway in oh yeah we found a problem that's all right we'll deal with it

no no now you've got to be really disciplined and and be prepared to walk away if what you find is is not uh acceptable to you

I do think Forward Thinking in terms of um negotiation

um I always encourage my team to think like chess players try and think three steps ahead try and anticipate um the evolution of a negotiation what's likely to happen

and to and to be able to do that you've really got to understand well what does the other side want to get out of this deal as well

and I think that's that's a critical part if you want a successful negotiation

too many people just work on well what do I want what do I need what am I prepared to pay

you got to work out what the other side of the table is looking for are they looking for maximum price is it certainty is it speed is it what are they what what's important to them

let's assume now so so now I assume I have Nicola tang and pest control company limited yeah and um you want to buy me now what is your best negotiation trick

I I don't know about tricks I don't know about tricks Nikolai

I mean I I I I used to be a pretty aggressive negotiator when I first started out um and this and I I learned some pretty um as I say aggressive approaches and I was you know I was quite a table Banger um

are you are you have you become softer with age

yeah I've become I'm mellowed and I'm chilled and I'm I'm a pussycat now so I'm much easier to deal with

but I actually figured out along the way that being hard and tough and shouty isn't necessarily the best approach to getting the best out of out of a out of a negotiation

what I would say in the way I do it I I won't pretend I'm the world's expert um I always say don't treat everyone the same

don't don't assume that Nikolai is going to behave in this way or that way and don't make you know assumptions that he's Norwegian so he'll think like this or he's you know 50 whatever and he'll think like

don't make assumptions about who you're dealing with understand them get to know them and then flex your negotiating style according to who you're dealing with

and and some people respond differently to different styles and techniques

but I I said I don't think it's a trick but but my view is if you're more prepared if you're more thorough if you're more detail oriented than the person that is on the other side of the table you should get the better of the negotiation

you don't have to be difficult and shouty to do it um you just got to be prepared to to uh you know work at it

I'd also say negotiating tricks or not be prepared to walk away

you know the somebody once told me the best deal that you can do is to avoid a bad deal

you know never be afraid to walk away even at late stage if the deal's not the right deal walk away

so I think um you know those are important things I don't think they're necessarily tricks of the trade but uh um they they've sort of held me in pretty good stad

and now you have bought me what's the key to integrating my company in the best possible way into racill

I I would say the first thing and the most important thing is people

and in in a business services it's it's all about people

so the first thing we got to make make sure is before we even buy your business going to make sure that there is cultural alignment

它将如何运作？我们能否都愉快地合作？我们能否互相尊重？我们能否互相倾听？我们能否互相学习？

或者你会感到不适，你的人会因为被出售而感到失败？

或者我们会因为我们“赢了”而行为不当？

所以对我来说，第一点是，不，不，不，你必须实现文化契合。

你必须让人们感觉非常好，认为这是一件好事。

然后第二部分是关于执行力。

我多年前就明白了，执行力远比战略更重要。

我认为这些是绝对关键的，并且始终非常关注人员和文化方面。

Nikolai：你提到了这里人的重要性，这是一个人员流失率（churn: 指在一定时期内离开公司的员工比例）相当高的行业。你如何留住他们？

Andy Ransom：是的，我刚才说过，对我来说，我认为服务型企业最重要的部分是人。

我想说，我已经担任Rentokil的首席执行官十多年了，很荣幸能担任这个职务。

前五年，我想我专注于流程、成本、结构、创新、摆脱不良业务以及收购。

在我任期的后五年，我真正专注于人，我想我有点晚才意识到这一点。

Nikolai：是什么让你醒悟的？

Andy Ransom：嗯，老实说，我当时正在和我的一个同事聊天。

你知道，我们当时做得很好，取得了很大的进展，我们进行了这次对话，我和我的团队关系非常开放。

他给了我一些反馈，他说：“Andy，你知道你做得不错，你还行，我们都做得不错。”

他说：“但我能给你一些建议吗？”我说：“当然。”

他说：“嗯，你打球不是为了赢，你只是求稳，你只是在自己的能力范围内打球。”

这很对，我是一个害怕失败的人，我不想搞砸，不想弄糟，这深深地刻在我的基因里。

他的建议是：“你应该开始为赢而战，而不是为了不输而战。”

考虑到这个人是我的下属，我认为这是一个了不起的建议，它真的引起了我的共鸣。

是的，这确实是对的，我们做得很好，我们正在取得进展，我们需要开始为赢而战，我们需要开始采取一些更大胆的举措。

大约在那个时候，我意识到，从所有数据来看，我业务成功的最大推动力是人。

关于留存率和人员流失率（churn: 指在一定时期内离开公司的员工比例），我说，如果我们能提高同事的留存率，那么就会发生伟大的事情。

如果你有快乐、投入、训练有素、安全的同事，他们每天上班，为客户做好工作，那么同事留存率就会提高。

然后我们就会有快乐、投入的客户，他们想从我们这里购买更多东西，他们对我们的故事、我们的创新感兴趣，他们会支付我们的账单，他们会给我们现金，我们再将这些现金进行再投资。

Nikolai：你们有5万人，每天都需要让他们起床工作，对吧？

Andy Ransom：是的，现在是6万。

Nikolai：你如何让他们起床，如何让他们为自己的工作感到自豪，如何激励他们？我必须很早起床打很多电话。

Andy Ransom：嗯，我想，你知道，整个文化部分非常重要，我非常非常认真地对待它。

首先，它是真实的。

在我们公司，人们会问：“Rentokil怎么样？”我说：“你知道吗，这是一家非常好的公司。”

所以它始于这个基石：我们确实关心我们的员工，我们确实希望他们茁壮成长，我们确实关心他们的安全。

我举个例子，我们将安全放在公司每一次会议议程的第一位，无一例外。

在过去的……因为对我个人而言，作为一名领导者，这极其重要。

我有一个背景，我以前在一家公司工作时处理过爆炸物，在我任职期间发生了一些致命事故，这至今仍影响着我。

我说：“再也不能发生这种事了。”

所以在一个以人为本、以路线为基础的业务中，有成千上万的人驾驶、高空作业、接触化学品，我说，这项业务中最重要的事情是我们的员工安全。