Oldendorff Centenary Book - Flipbook - Page 58
THE PERFECTIONIST
PARADOX
LOOKING AFTER THE
BOTTOM LINE
To Egon, the first rule of business
was to control costs. His shipping
knowledge and business acumen
were considerable, but behind it lay
a farmer’s frugality: this was a man
who believed in keeping a tight rein
on outgoings.
Employees from the Egon era
have enormous affection for the
company’s founder, but they also
recall his reputation of being careful
with company money. Renate
Raska and Doris Harms remember
the famously inexpensive wine
served at Christmas company
meals, or the frugal expense
allowance on business trips. On
a trip to Copenhagen to deliver
some documents, they bought a
single sausage each on the return
ferry – only to find later it was not
covered by expenses. When a ship
was launched, the pot plants that
decorated the launch platform
were reclaimed after the launch
party guests had left. Why should a
farmer let a good plant go to waste?
The story is also told of a business
trip to Rotterdam to take over a
ship. On arrival at Rotterdam
station, Egon became separated
from his two colleagues. They duly
took a taxi to the port and had
already started the technical
inspection of the ship they were
about to take over when Egon
arrived, some 20 minutes later.
He may have had a cheque in his
pocket for the $2m purchase price,
but he still insisted on saving
money by taking the tram.
Nonetheless, Egon awarded staff
bonuses every year – with each
employee invited into his office to
be personally presented with a
brown envelope containing the
notes. In the mind of Egon, every
pfennig mattered, and he knew
that it mattered to his people too
– which meant the annual bonus
was money he enjoyed spending.
VALUE OVER COST
When Henning assumed the
leadership of the company, his
approach was deliberately different.
Of course, he nurtured good people
and knew the shipping industry in
the same way that his father had.
But his approach was to maximise
value rather than minimise cost –
and he was keen to show how his
way of doing things was different
to his father’s.
Henning admits that the decision to
invest in the Flensburger shipyard
in 1990, for example, was possibly
driven by his desire to do something
his father wouldn’t have done.
Under Oldendorff ownership, the
shipyard made a profit each year
and was sold before the 2008
crash, but it was hard to justify the
commercial decision to build ships
in Germany. Nonetheless, it was
down to Henning’s entrepreneurial
streak – and his desire to be
different. He was once asked why
the lights were still on in the office
until 11pm to make the building look
nice, even though no one was there.
His answer was: “Because I am not
my father!”
Henning’s desire to find value
instead of reducing cost explains
the dismantling of the old-school
Oldendorff hierarchy and the
increasingly entrepreneurial
nature of the company in the
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last 35 years. Egon would give
freedom to his managers, but it
was a strict hierarchy from then on
down. Henning and Peter created
a culture of empowerment and
entrepreneurial freedom that ran
throughout the company. What
was important was that everyone
was free to invest their time, effort
– and the company money – in
activities that would generate
value. Most shareholders insist on
knowing what is being done with
their money: Henning did not. Peter
sums it up: “Henning is the best
shareholder you could wish for.
Thank God he needs a manager.”
But this does not mean that
Henning was ever less than 100%
dedicated to the company. Mark
Pistorius remembers working very
late on a Sunday evening, when he
was surprised – and inspired – to
see Henning join him in the office
and start work himself. At a time
when Mark and his family were
uncertain about living and working
in Germany, and were considering
returning to South Africa, it
convinced him that Henning was no
passive shareholder but the kind of
boss he wanted to work for.
ATTENTION TO DETAIL
While Henning delegates “to the
point of abdication” in some areas,
there are others where he likes
to be more involved. Company
decisions to buy and sell ships
are of course largely his, always
in close coordination with the
board. And there are times when
smaller details need to be perfect
– and he will see to it personally
that his idea of perfection is
achieved. Bertram Sartoris, for
