Whatever industry we work in, whatever products we supply, it is the customer who ultimately makes a judgement about the quality of our work and it is the customer who pays our wages. It is also the customer, therefore, who should be the most important consideration and the driving force behind a corporate strategy for success.
This should be an easy concept to grasp, yet surprisingly few rental companies and laundries have recognised that the customer is their most important asset, seeing themselves as a manufacturer rather than a product or service provider.
Workplace services provider, the PHS Group may not be the exception to the rule but it is certainly helping to drive the industry forward with the all-round customer experience central to its business plan.
It is a strategy which has already had its successes and seen the PHS Group rebrand itself and grow to establish itself as the number two workplace services provider in the UK.
In each area of its operations, PHS has enjoyed exceptional growth in recent years, both organically and through acquisition—in recent months PHS has acquired: GP Hygiene, a workplace services company in Yorkshire; Just Mats, the High Wycombe based dust mats company; Oakwood, specialists in exterior plant display; and Protector, the Belgium based washroom services group.
The company is quick to stress, however, that its aims are to grow through the customer and not through acquisitions.
Alaric Churchill, head of marketing, says: “We want to be the best, not the biggest. Acquisitions are only made if they are a good fit with our current business, therefore extending the core range and spread of our services to the customer.”
Established in 1963, PHS was one of the first UK companies to meet the need for an effective sanitary disposal service in company washrooms. Since, PHS has built a strong reputation for quality and service and has expanded to provide a wide range of services both inside and outside the washroom.
Following its recent acquistions and the completion of the company’s rebranding process, the PHS Group now consists of: PHS Washroom—its washroom services division; PHS Treadsmart—its dustmats division; and PHS Greenleaf—its plant display consultancy operation; as well as PHS Protector.
Growth for the PHS Group has been impressive with its turnover up in the financial year 1998-1999 from £42.7 million to £56.1 million—a 26% increase, and operating profits up from £8.5 million to £12.1 million—a 42% increase.
The Group’s market position too has improved, with PHS occupying the number two slot in each sector—PHS Washroom now has a market share of 19%; PHS Greenleaf a market share of 10%; and PHS Treadsmart has a 23% share of the dustmat rental market.
The company’s washroom services business continues to dominate its portfolio, being responsible for 70% of its business, including PHS Protector and PHS Inc, US.
Meeting the washroom needs of 67 000 clients and servicing 150 000 washroom sites a week PHS is no longer a small company but, says Mr Churchill, neither is it so big that the customer has become a secondary concern.
He says: “We have reached a critical mass [being neither too big nor too small], which allows us to fully meet our customers’ needs through product innovation and customer service.”
Investment in these areas, says Mr Churchill, has enabled PHS to create a one-stop shop for customers’ washroom requirements, with a comprehensive product range available including: sanitary disposal products; vending machines; warm air dryers; soap dispensers; water management systems; water sanitisers; air fresheners and air cleaners; paper systems; and baby care services.
The company, says Mr Churchill, will continue to exploit opportunities to broaden its range of products and services. “Product design is a key area in which we are trying to drive the industry forward. Our products must look good as well as perform their function to the highest standards. We benchmark all our products against the best on the market and try to emulate and surpass them.”
A growing market sector is dustmats and the branding opportunities it presents to go-ahead companies. With greater importance being attached to customer service in order to gain a competitive edge, many companies are altering their marketing emphasis—with focus given to stonger company brands working in close combination with the product brands.
PHS Treadsmart, following the acquisition of Just Mats, is now meeting these demands and challenging for leadership status in the supply/servicing of dustmats.
Mr Churchill argues that the market potential for dustmats and logo mats in particular is vast. He says: “Dustmats can change the face of a company very quickly as well as reduce cleaning and carpet replacement costs.
“Just Mats had a very good fit with the company, allowing us to expand our portfolio of products and offer the customers of both companies an enhanced service.
The PHS Treadsmart range of mats include: standard mats—to protect floors against damage and soiling by footborne dirt and moisture; cotton mats—a luxurious range of cotton yarn high absorbency mats; designer mats—custom made to advertise a brand or promote corporate identity or communicate messages; fitted mats—hand-cut to fit into mat wells or carpet cut-outs; and permanent fit mats—a hardwearing range of entrance mats for high-traffic areas.
Tropical plants became a core area of business for PHS in the early 1990s following the acquisition of Greenleaf.
Since then the market has grown at a rapid rate although, says Mr Churchill, the real potential has yet to be unleashed. He says: “Companies are only now starting to appreciate that first impressions can affect their bottom line business.”
PHS Greenleaf provides a full plant display service, from consultancy on the design to meet the desired themed effect, to installation and regular maintenance.
Speciality services include palm trees built to customer specifications, with curves and bends if required, and a range of seasonal displays, including “fully-dressed” Christmas trees, basket displays, wreaths and garlands.
In each sector of PHS’ business, stresses Mr Churchill, customers are the focus. Vital to this policy drive has been a £1 million investment in a new Tele-business centre. The new facility is fitted with the very latest in call centre technology, allowing highly trained staff led by skilled team leaders to be proactive in keeping customers advised on the best deals and service available from PHS.
Recently launched to provide protection for customers from vandalism and theft is a new scheme which Mr Churchill says is the first of its kind in the workplace services market.
Mr Churchill says: “Before Cover Plus customers were protected from product breakdown but not from accidental damage, vandalism and theft. For an annual one off payment PHS customers can have peace of mind that should any of their PHS products be vandalised, damaged or stolen, a replacement service is available.
Prices start from £15 and will depend on the level of risk, number of products and vandalism history of each customer.
The foundation of the growth and success being enjoyed by PHS is the recognition that business is as much about people as it is about products. It is a principle the company applies to its staff as well as its customers. The stated vision of Peter Cohen, chief executive, sums up where the company’s commitment lies: “To be the best workplace services provider in the UK offering quality and value to our customers and a challenging, rewarding career for everyone in the company.”
Mr Churchill agrees when he says that work should be fun and that a happy staff means happy customers.
It is a philosophy evident in the atmosphere at the company and in the provisions made for its staff. Central to PHS’ development plans are on going staff training programmes—PHS have a dedicated in-house training division and are expecting to achieve the Investors in People Certificate by the end of the year.
PHS is a company which has no ivory towers, and recognises that people—customers and staff—are its principal assets. In an industry which is only now coming to terms with this concept it is a breath of fresh air and PHS is leading the way.
The future certainly looks bright for PHS and following its recently announced purchase for £215 million by Charterhouse Development Capital, a leading private equity business , the company’s expansion agenda, which includes core business investment, geographic expansion and a fourth workplace services business, can only be beneficial for the customer.
