Feline good after 30 years: Softcat CEOs on three decades in business

Softcat CEOs past, present and future answer CRN's questions as Marlow-based reseller turns 30

Softcat turns 30 today. Founded in 1993 by Peter Kelly, the Marlow-based outfit has grown into the largest domestic UK reseller, with a fiscal 2022 top line topping £2.5bn.

CRN caught up with three Softcat CEOs of the past, present and future to reflect on its journey and the next 30 years.

Martin Hellawell (CEO from 2006 to 2018)

When Softcat floated on LSE, we asked you whether you thought the business could sustain its growth rate. You said it could. Now it has a top line of £2.5bn, do you still feel the same way, and is there a natural ceiling for a business like this?

I was confident at the time, and I remain confident that if we can continue to keep our business as simple as possible and get the basics right there is no reason why we can't double, triple, quadruple in the future. So yes, we can absolutely sustain Softcat's growth rate. It's an exciting opportunity to increase the size of the market and going International will potentially be an important part of the future.

How much has Softcat's character changed since you handed the reins to Graeme?

The change has been on two levels. We've always had a very open culture where there is a real respect and trust between the CEO and the team, and vice versa. The values of togetherness and helping each other, not letting politics creep into the business are values that Graeme has protected extremely well. What he's done on top of that is evolved the business and the culture in an extremely positive way. Graeme and his team have done a fantastic job in making the culture far more inclusive and embraced all personalities over the last five years. He's also done all of the backend stuff I never did, such as embed a proper IT system, spending the money we needed to put resources and infrastructure in place to step up our game. He's given the organisation a platform to spring forward again.

Thinking back to your time as CEO, what's your biggest regret?

If I look back at my time at Softcat, where we went from 90 to 1,000 people, floating the company and becoming the most profitable reseller in the UK - it was absolutely amazing. We went from one office in Marlow to Manchester, London, Leeds, Bristol and then beyond. Our reputation in the industry went through the roof with fantastic vendor relations. The culture was a big part of that journey, we took the energy you get from employee motivation and pointed that towards our customers giving the organisation the confidence to be a part of the big players. It was fantastic. I just didn't realise it at the time. It was hard work; I was always on the go and my mind was thinking about the next big thing. It meant I never took the time to stop and realise that what we had achieved was fabulous. I appreciate it a lot more now than at the time. And so, my one regret is that I wish I had fully appreciated just how good it was at the time.

Graeme Watt (CEO from 2018 to present)

Graeme, how would you characterise your period in charge of Softcat and what do you regard as your biggest achievement as CEO?

Stepping into a high-profile job at a FTSE 250 company is pretty terrifying, particularly, if like me, you have come from outside the company. But it's equally exciting. Taking the company to the next level was always my priority and that has shaped the last five years for me. We've grown hard and doubled the size of the company and expanded both in our core markets and in our multinational business too. And we have added operations in Ireland, the US and closer to home in Birmingham and Newcastle. We've embraced flexible working, built on our communities and inclusion agendas and given back to charity, all whilst facing external challenges in the economic environment with Brexit, the pandemic and we've replaced our financial systems too. It hasn't been easy, but we have made great progress together.

Everything we have done at Softcat we have done together. It's about the team and that's why we are still here today, 30 years on.

We have record-breaking employee satisfaction and I think maintaining and evolving the special culture that we have is one of things of which I am most proud. Our whole ethos as a team is that we support and care for each other. If we reward and recognise success too, we will have a highly motivated and engaged team who are having fun. And guess what - they will deliver an outstanding customer service. If we continue to be people and customer led and execute to expectations, then we have the foundation for future success.

What words of advice would you have for Graham as he prepares to take over?

I am very confident in Graham's ability to take the company to the next level and lead and navigate the company through its next phase. I think he's going to be a fantastic CEO. He knows this already but it's important to keep listening, be himself, use good judgement be transparent and accessible and keep putting our people first. I am very excited to see how Graham and the team develop the business further.

Looking at the business today, to what extent does it retain some of the quirky and eccentric traits with which it made its name under Peter Kelly and Martin? Are at least some of these traits incompatible with being a FTSE 250 firm?

When we went to IPO in 2015, there was a fear that the administration and governance required could take some of the sting out of a business but for us it's had the opposite effect. It's enhanced our reputation and added to our profile and brand. When it comes to our quirky traits, there was always a very good business reason for them and there are many things we do today that we've evolved and built upon to keep Peter's ethos alive. Whether that's our incentive trips, or weekly ‘share the love' email from the leadership team or our internal Founders network, these are just some of the things that keep our culture alive. They help drive all the things that make Softcat a wonderful place to work. We are very thankful to both Peter and Martin for creating and building the environment and opportunities that everyone at Softcat enjoys today. We continue to build on those critical success factors to deliver future success in an ever-evolving world.

Graham Charlton (CEO in waiting - from July 2023)

Graham, do you feel the challenge facing you is different in nature than when Graeme took over?

In some ways yes, but there's a lot of commonalities too. The business gets bigger every year and perhaps has some more complicated facets to it, but the key challenge relates back to what has always made us special - our people and culture. How we continue to stay true to our founding vision to be a special place to work will remain our primary goal. That hasn't changed one bit and it never will. The realities of how you do that as we move beyond two thousand and towards three thousand people, will ultimately have teamwork at its core.

Have the leadership styles of Softcat's three previous CEOs rubbed off on you? Or will you take an entirely different approach?

I've learned a lot from working closely with Martin and Graeme, two of the best people I've come across during in my career, and I've also mentioned Peter Kelly's influence. But everyone is unique and the importance of being authentic is vital. The route ahead for Softcat is very clear to me, and the opportunity we have is vast. My hope is that I can play a key part in what will be a massive team effort to make the future for this great business to be as bright as it possibly can be.

It's hard to look ahead 30 years, but what are your hopes and dreams for Softcat moving forwards?

I hope that Softcat will always be a place where people feel that the company cares about them, and that they in turn care for and support the people they work with. If we can do that, a lot of other things start to take care of themselves.

That ethos has built an incredible launchpad for this next phase of the journey. The market and industry that we operate in is, in my view, the most exciting place to be right now and for many years to come. IT infrastructure is the fabric of the modern economy and its growth and evolution is what we deal in. Softcat has an unrivalled ability to invest in and build the technical capabilities that customer and vendors will need from us in the years ahead, and we're also getting pulled by our customers into overseas markets which becomes another avenue for growth. Five years from now I hope we'll be bigger, more international, and have the sharpest technical offering in the market.

All of that means we can offer our people incredible opportunities for their own personal growth and development. Seeing good people with the right attitude succeed and progress is a major part of our DNA. Helping that talent reach its potential is really exciting and will be a major part of what propels us forward, including how we can lead our industry to be more inclusive and sustainable.

There's almost no limit to what this business can achieve and become.