Warburtons is the UK’s leading independent baker and one of the UK’s top five grocery brands. The roots of the business go back to 1876, when Thomas and Ellen Warburton opened their first grocery shop, later a local bakery, in Bolton. Members of the
Warburton family have run the business for most of its 130-year history, as the business has extended its reach across the UK. Jonathan Warburton, one of the fifth generation of the family, is current Chairman, and his cousin Brett is Director of the business.
In 2005, after a decade of strong growth when turnover went from about £50m to more than £300m, the family decided that they were ready for a chief executive from outside the family. For
Jonathan Warburton, this decision was a natural evolution for the business. “The decision was no more sophisticated than the normal progression of change that takes place in a growing business, whether family or public,” he says. “Although the business was doing very well and growing steadily, we realised that it was time to look for new management to take the business to the next stage.
At the same time, as a family we thought that it was more important to be good owners rather than managers. It was a board decision driven in part by the non-executive directors.”
Mr Warburton says that the goal of the recruitment process was to find the best person, regardless of whether they were connected to the family or not. The company considered hiring a new chief executive from outside the company, but this idea was rejected on the grounds that an external candidate would not understand and support the values of the business. Instead, the company promoted Robert Higgonson, finance director of the company.
According to Mr Warburton, the biggest challenge has been remembering that the family was no longer running the company. “At the outset, there was a natural temptation for us as family members to feel that we know better,” he says. “But we have to remember that Robert is responsible for running the business on a day-to-day basis.”
“At the outset, there was a natural temptation for us as family members to feel that we know better”
Since the transition, Mr Warburton has remained the conduit through which family members express their thoughts and concerns, and through which decisions taken by Mr Higgonson are relayed to family members. “Part of my job [as chairman] is to keep other family members in the loop, so that they understand and are informed about plans and decisions as they evolve, are fully briefed and up to date, know what’s happening, and feel included.
Also, there is a challenge for Robert in that he has to deal constantly with three family members who are very knowledgeable and experienced and care very much about the business success. In fact, Robert has made a great success of the job.”
What about the future? There are numerous Warburtons in the next generation and, although Jonathan is still in his 50s, he knows that they need to think about the next generation and their role in the business. “I would love it if one of my children was interested enough to want to join and work in the business,” he says. “But it’s clear that none of the managers will want to work for them if they are not up to the job, irrespective of their surname.”
