ITL Technologies Limited

Case Study

When ITL Technologies Ltd Managing Director Paul Cheetham left the Post Office in 1986 to set up his own fledgling telephone and computer cabling company, there were some aspects of the old government department culture he was glad to escape. But there were other aspects, such as the close-knit staff and sociable atmosphere, that he was determined to carry with him into his new business.

Over the years ITL Technologies grew into a highly successful company, which now employs 35 full time staff, plus many exclusive contractors, but Paul’s attitude to the sort of people he likes to work with, and the type of company culture he enjoys hasn’t changed.

“In many ways it’s like a family business. There have to be lines of authority, but anyone has to be able to talk to anyone. I believe in gathering people around me who have strengths that I don’t have. It’s hard to get good people, so once you’ve got them you have to hold on to them. This is the sort of place where once you’re in, you stay in.”

In 1997, Paul started thinking about a scheme, beyond incentives or staff bonuses, which would acknowledge his long-term staff’s commitment and reward them for their loyalty. Paul spoke to his advisor (ITL’s accountants and financial advisors from day one) about the possibility of initiating a share scheme, whereby long-term staff would be invited to buy shares in the company.

“Our share scheme is quite innovative for a smaller company. 20% of ITL’s shares are available to employees. They can buy in after they’ve worked here for a year, with an interest free loan available to them if need be. There’s no direct financial benefit to me at all, but there are lots of other reasons that make it really worthwhile. For a start I feel that we all work a bit harder and smarter when we have a stake in the business. It gets the employees involved in how the company’s going and gives them an incentive to come up with ideas for increasing profitability. The level of loyalty and enthusiasm here is brilliant.”

We’ve got great business advice from day one. That’s crucial. It’s too easy to lose perspective when you’re busy running a business. They have been great to bounce ideas off. You’ve got to get solid advice from smart people or you may as well pack up and go home.”