Senior Management Team key to datacentre success

Senior Management Team key to datacentre success

I am often asked what the key ingredients to running a successful company are. Particularly one which operates world class carrier neutral data centres in the UK. My answer is simple - having a well-oiled Senior Management Team (SMT).

Having seen data centre operators come and go over the last two decades, those that stick around or have been acquired are generally those that have a solid SMT-a leadership function that Winston Churchill would be proud of.

Since we hit the financial crisis of 2008, increasing pressure has been put on our FD’s and CFO’s to ensure that supply chains are as robust on the inside as they appear on the outside.  Credit scoring and financial due diligence is becoming par for the course and general procurement pessimism is at its peak.

This “procurement pessimism” is felt throughout the industry with protracted sales cycles and longer than ever lead times on contract completions following months of contract negotiations on “what if…” scenarios and clauses. Everyone is cautious  not to expose their company to potential unnecessary liability and  prudent not to put their job at risk…knowing oh too well such things like jobs are like rocking horse manure in times of austerity.

This is why it is imperative at this crucial time to ensure you have your ducks in a row.  A quality SMT comprised of professional, dedicated and highly experienced individuals is essential in order to  ensure that  all aspects of a well-oiled machine; remain well-oiled and regularly serviced.  The highly geared asset rich nature of a data centre operator requires a keen balance between cash flow and debt.  One doesn’t want to starve the business of cash to allow for the next phase of construction to begin, however one also doesn’t want to overly expose the company to mountains of debt that is unserviceable.  One also needs to keep a keen eye on the company’s order books to ensure whichever route the CFO decides to take to fund the next phase, there is sufficient technical space available to furnish the new orders, on time.  This is a prime example where the COO and CFO need to work in harmony.

Finally, a well-oiled SMT needs to know how to delegate.  There isn’t much point in being well-oiled, if the SMT are the ones applying the oil, and for this reason, delegation is another key skill which is  crucial to a successful SMT and the successful operation of a data centre.  Having the ability to communicate the key objectives as well as being able to articulate the  company’s ethos and message statement down the chain is an important attribute to have.  Your staff will look to you for leadership and how the SMT is portrayed in their day to day roles will rub off on them.  Remember, whatever message you are putting out to your team will eventually filter all the way down to your customers…so make it a good one!

It takes years to gain the relevant experience within an SMT to orchestrate this fine balancing act required within a data centre operator.  Procurement managers and CFO’s will no doubt look to the balance sheet to give them comfort that their preferred supplier of data centre services will be here not just today, but tomorrow as well.  Secondly, however, if not at the same time, the SMT will be interrogated on experience and their ability to gel well together as a leadership function and share the same company direction and ethos and its ultimate goals.  They will look to the SMT for a team of sensible, responsible individuals who have the company’s best interests at heart and who can steer the ship through bumpy waters and come out of the other side relatively unscathed.

What does all this mean…well get it right and it could mean more golf, which is good for all of us. Get it wrong and the consequences could be disastrous.