Presenting one of the unsung heroes of the British small enterprise community
Harry Platt's offices are a lifeline to dozens of companies trying to find their way in a world that has rarely been so difficult, as Rebecca O’Connor reports
(Jas Lehal/The Times)
Harry Platt emerged from the ranks of Britain's town planners to play a key role in developing small businesses in Britain as chief executive of Workspace, the office space provider
Harry Platt does not do office politics. After 14 years working for local councils, where diplomatically he asserts that there “can be difficulties getting things done”, the chief executive of Workspace Group now just does offices. Serviced ones, mainly in London and the South East, as well as warehouses, studios and light industrial units for small and medium-sized enterprises (SMEs).
Mr Platt, 58, whose own office, best described as “functional”, is based in Whitechapel, East London, much prefers a straightforward board of directors to “the complex web of politics” that local authority workers must negotiate.
Still, he says, the skills he gained by successfully navigating his way to becoming chief executive of Harlow District Council by the age of 31 have also helped him in his present role, as overseer of a portfolio of more than 120 properties let out to 4,500 SMEs at an average weekly rate in London of between £250 and £300.
“I like to think that the balance between public and private sector experience has given me a more rounded view,” he says. “My background is in cities, urban regeneration and particularly the provision of accommodation for small businesses. In my early career in the 1980s, it was unusual for there to be any space at all specifically targeted to accommodate small businesses. Now it has become much more mainstream.”
Mr Platt started out as a town planner in Manchester after finishing degrees in Geography and Environmental Planning at Cambridge and Nottingham universities.
He moved to London in 1977 and worked for the Borough of Greenwich, where he improved the road infrastructure around the peninsular, now the site of the O2 dome.
He left Greenwich to join Harlow, before being headhunted to join Dixon Commercial Properties, part of the Dixon Group. He joined Workspace in 1991, in the middle of the recession. The portfolio then comprised only 14 estates.
The biggest change that has taken place in the sector has been the provision of flexible leases for office start-ups. In the 1980s, when Mr Platt was the assistant chief executive for Greenwich Council, work space was let on off-puttingly long, 25-year leases with five-yearly rent reviews.
Workspace and similar companies offer flexible, short leases, which have helped many an entrepreneur to get going when they might otherwise not have bothered. As a result, Mr Platt is one of the unsung heroes of the British small enterprise community.
“There was no thought about flexible leases for small businesses that would allow them to expand or contract as circumstances dictate; and that, as well as fostering enterprise, such leases could also improve returns. But small businesses need a flexible lease to provide the opportunity for them to expand as opportunities arise or contract if they get difficult.”
By putting a number of enterprises in the same building, Workspace also offers an indirect helping hand to a company’s networking potential. “Many small businesses benefit from being in an environment where they are in contact with other small businesses. Our most successful schemes are where we have breakout spaces, cafés and communal areas where tenants can talk to each other. The buzz at our sites like Clerkenwell and Kennington is quite incredible.”
Providing offices to entrepreneurs has given Mr Platt a direct line into the creative engine room of the economy. As a result of relationships with tenants, he has a ready-made network of suppliers, who sometimes do “space-for-services” deals.
Carnegie Orr, a company based in Clerkenwell Workshops, East London, has produced the past three annual reports for Workspace; Haime and Butler at the Leathermarket, in Southwark, on the southern side of the Thames, produce a lot of its marketing literature; while the company’s printing is done by Service Point at Tower Bridge.
Unfortunately, the exposure to SMEs has also left Workspace vulnerable in the downturn to higher vacancy rates, as many have failed to stay afloat. It is an argument to which Mr Platt has a convincing and wellrehearsed response: “Back in January, some investors thought our occupancy would collapse. This reflects a fundamental misunderstanding of the nature of small businesses in the London economy. Sure, small businesses will be affected, but, as our recent research with Kingston University shows, many small businesses also see this time as one of opportunity.
“It is up to us at Workspace to manage the churn that is a characteristic of the SME sector. There are always going to be small businesses in London establishing themselves, growing, expanding and so on, even when the economy faces major downturns.”
There are caveats to this, the main one is that the location and building have to be right. Some of Workspace’s best-occupied properties have a history, such as the original Leathermarket in London, the former Marmite factory, the Airfix factory and the largest biscuit factory in England. “Our tenants love the history behind these properties and I think they like the feel of the buildings. They have a character and soul. They are not standard offices.”
Over the next decade, Mr Platt thinks that sustainability will become more of a priority for tenants and building owners, but for now, the focus is three things: improving the occupancy and rent roll; improving the recycling of capital and reinvesting in stock; and exploiting the opportunities in the downturn.
Churn has increased. Customers used to stay for four to six years, but Mr Platt is not sure by how much this typical length of time has fallen. Nevertheless, he dismisses this concern and instead puts his faith in the indefatigable entrepreneurial spirit. “In this sector, you must talk not only about what happens to the business, but also what happens to the business owner. Many of our customers are serial entrepreneurs and stay with us, with different businesses, for many years to come.”
Q&A
Who, or what is your mentor?
If I had to point to someone in particular, I would have to say Eric Lees in the Town Clerk’s Department in Manchester City Council in the early 1970s. As a young town planner, he took me under his wing and saw my potential.
Does money motivate you?
Money motivates us all to a degree. It has to. I have always enjoyed travelling, and I am fortunate, for, without money, this would not have been possible. I would also say, though, that I have always been motivated by new challenges with a real purpose — in the case of Workspace, this has meant developing and growing and making mainstream what was not so long ago the very new business concept of providing flexible affordable space for new and small businesses.
What was the most important event in your working life?
On reflection, I would say becoming the chief executive of Harlow council in 1982 was a turning point in my career. I was 31 years old, one of the youngest local authority chief executives in the country, and in charge of a staff of over 1,600 at the time of rate-capping and political turmoil between central and local government.
Which person do you most admire?
On a macro scale, my first choice would be Nelson Mandela. He had this incredible ability to lead and inspire and work with those who had imprisoned him. On a micro level, I have admiration for many of our customers. They have established and are building successful businesses from scratch, often into world-leading enterprises.
What gadget must you have?
My wife Pauline has just got an iPhone. She has convinced me to get one, too, so I am waiting for that to arrive. I also have a sound system at home which plays in most rooms, although I have also recently put a record deck in my study to play all my old vinyl records.
What does leadership mean to you?
First and foremost it is to inspire and enthuse others around you. The workplace needs to be a productive environment. You must know your staff and they must know you. Leadership must set the tone of the company and the ethos behind it. It is not just about establishing a mission statement on paper; it has to be about delivering on promises.
How do you relax?
I spend time with friends and family, and I enjoy swimming. I would like to say that going to see Spurs relaxes me, but it never does!
CV
Age: 58
Education: grammar school, Oldham; Peterhouse College, Cambridge
Career: 1975: town planner, Manchester City Council; 1977-82: assistant chief executive, Greenwich; 1982-89: chief executive, Harlow District Council; 1989-91: operations director, Dixons Commercial Properties; 1991: managing director, chief executive, Workspace
Family: Married, two children
Interests: Tottenham Hotspur FC
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