Past Featured Chairmen

There are any number of CEOs who like to claim that they 'work at the coalface' - but few, precious few, who actually have. Dr Tim Cooke is one of them.

Leaving Oxford with a D Phil in Chemistry, but little desire to spend a lifetime in a lab wearing a white coat, Cooke joined the National Coal Board. This was not quite the eccentric decision it might appear.

'There were one or two premier Operational Research groups in the country in those days, and the NCB was one of them. The NCB was huge and so were the management problems. So we spent a lot of time modelling the problems, devising solutions. The NCB was a great place to learn those skills.'

Cooke's obvious aptitude was quickly spotted and early one morning, 3am kind of early, he was woken by a phone call from a firm of Californian headhunters looking for someone with business science skills to join an aluminium and chemicals firm. Could he be on a plane to San Francisco next week? He was, and it was the start of a meteoric career.

It was also one of the first lessons that Cooke learned.
'The importance of networking. I got that call because of someone I knew. Getting and keeping contacts is essential.'

But it was also Cooke's first exposure to the importance of computers. Even though Silicon Valley at this time was still full of peach orchards, it was clear that the future of business was in computing.

With this in mind, and moving back to the UK with his new family, Cooke was keen to move into the field. Another maxim: 'Always try and work for the best companies you can. Look for blue chip firms - in the sense of being leaders in their field.'

Logica, then a mere fledgling, was exactly what Cooke was looking for. It was to be his workplace for the next 20 years, taking him around the world - literally.Tours in Helsinki, Oslo, Stockholm and Sydney taught Cooke the importance of sales. 'You have to be able to sell. Selling is the most difficult job in business, you have to have drive, a lot of drive, and self-reliance.'

After his overseas tours, 'I spent the next 10 years managing ever larger business units within the company.' His final position with the company was as CEO of Logica Communications, a group of about 600 people.'I enjoyed my time at Logica, it was - and still is - a great company, but I wanted to go back to something more entrepreneurial, something smaller.'

It didn't take long. Oxford Molecular, a drug design company, was looking for a CEO to help them float. With his background in software, chemistry and business experience, Cooke was the ideal man.'It was the first ever floatation of a company out of Oxford University.'

The floatation was great success, raising £10m, and establishing Cooke on the VC scene. 'The VC community in this country is very small. There are probably only about 100 people or so you need to know and talk to. Word gets out.'

And so it did. An invitation soon followed to float as CEO, the UK's first internet software business, Intelligent Environments.

A raft of Non Exec roles emerged, mainly in the technology and services sector, but with one or two back spinners thrown in - such as the Chesham Building Society. 'This is a very different experience. Being in the financial sector everything is very heavily regulated, and this is much more about governance than anything else. 'As we have seen recently with Northern Rock, this is a very important area. You are dealing directly with people's lives, their saving, their investments, their homes, so good governance is very important. But if you have a company of two private shareholders, what does good governance mean?

'In tough times, as we saw post the dot com boom and 9/11, a lot of what you have to do on a board can come very close to compromising your fiduciary duties as a director, but sometimes that is what you just have to do. You have to keep your nerve to see the company through to profitability.'

With over a dozen directorships to his name, and up to 5 at any time Cooke has better understanding than most of what makes for a good board, and what makes for a good Non Exec.

'Most companies take on a Non Exec when they hit some sort of step change or crisis. Up to then they don't really think they need them. But suddenly something happens - there is a cash problem, sales aren't what they should be, or the company is looking for an exit.

'That is what Non Execs bring - experience and contacts. Someone who can't bring either isn't much use as a director. You have to bring added value or special knowledge.

'And you are always looking for diversity on a board. You want people from a broad range of experiences. Not all lawyers or bankers or the like.'

One of the most important - in fact probably the most important -task that any board has to carry out is appointing a new CEO. How to manage this?

'Passion. This is the one thing above all to look for. Does this person have passion for the job? Being a CEO is a 24 hour a day, 7 day a week job. You never stop thinking about it. You want someone with that commitment, maybe even more commitment to their job than to their family.

'If you have a selection of people from which to choose, and maybe they all have the right 'technical skills' then always go for the one with the passion.'Controversially Cooke also likes to appoint from within the organisation. 'You want someone who has a good cultural fit, someone who understands the market and organisation and what really makes it tick.

'And I am a great believer in youth. So for example we have recently appointed a CEO for the Chesham Building Society who is in his very early 30s. He is the youngest building society CEO in the country.

'Sure it is a risk - there were some board members who questioned his lack of experience - but at the end of the day, he was appointed from within, we already knew what he was capable of, he knew and understood - really understood - the business. And being young he burned with the passion for the job.

'One mistake that people often make in this country is when appointing US CEOs. They are often very good, but too often there is a significant cultural misfit and it can make for a very unhappy time.'

It seems a long way from calculating the length of conveyor belts for a South Wales colliery but Cooke is proof positive of the benefits of having a simple career plan - work with the best people you can and don't compromise. It has certainly stood him well.

Ben Rooney is a freelance business journalist. Ben can be contacted at ben@benrooney.com