Thinking outside the box
The business news that matters
Hello and welcome to the latest edition of Off to Lunch…
DS Smith, the FTSE 100 company that makes recyclable packaging and paper, has announced that Miles Roberts will stand down as chief executive.
Roberts has been chief executive of DS Smith for 13 years - transforming the company from an industrial conglomerate selling plastics and office supplies into one focused entirely on recyclable packaging. And he will be in charge for a while yet too. DS Smith said Roberts’ notice period will not start until December 1 2024 and he could remain as chief executive until November 30 2025. “This will give the company an appropriate amount of time to identify and appoint his successor,” DS Smith said in a statement.
The DS Smith share price tells its own story about the success of Roberts and the challenge of finding a replacement. Roberts took charge in 2010…
Today the company is worth more than £4 billion and has more than 30,000 staff across 30 countries.
We interviewed Roberts for our podcast earlier this year and it is well worth going back to listen to the episode again on the back of today’s news. Roberts explains why packaging is way more interesting than you might think, how he became a FTSE 100 chief executive after leaving school at 16 and why longevity is an underrated asset at the top of a business.
This quote about the turning point in his life after he left school has stayed with me:
“So I used to live around Crystal Palace [in south London]. I worked for a sort of a plaster really, dry lining. An ex-girlfriend's father said to me: ‘What the hell are you doing? What on Earth are you doing? This is a complete waste. You have got a brain in your head. What are you doing?’ His mantra was if you've got some brains, then you should use them. You can't duck out - you've got to lean in, you've got to get involved and stuff.
“So then I went back and started these courses. You can do A Levels and stuff in the evenings. I found I could do those things….”
And he also said this on the benefits of longevity:
“In a funny way when you get the job [as CEO] it's because people really want you and like you and all the rest of it, but actually you are the least qualified to do it. It's now later on, and you've learned all of these things. I think as you've been there longer, you should be more able to deal with issues…
“Having a deep understanding I don't think conflicts with change at all. I think, in some ways, the longer you've been there the greater the ability you have to make change.”
You can listen to that episode again via Substack here, Apple Podcasts here and Spotify here
In the statement from DS Smith today, Roberts said:
"I have enjoyed every moment of my career with DS Smith and it has been a pleasure to work with my colleagues and the company's customers, suppliers and other stakeholders. After 13 years this seemed like the appropriate time to make this announcement, so that a proper succession and orderly handover process can take place. In the meantime I remain fully focussed on continuing to develop and strengthen our business and leadership in the circular economy.”
The chairman, Geoff Drabble, added:
"There will be plenty of time to thank Miles properly when he leaves, but he has served the company exceptionally over the last 13 years and has transformed the group into what it is today. He will be much missed by both the board and his colleagues within the wider business."
A reminder that the latest episode of our Business Leader podcast also features an interview with a long-serving FTSE 100 chief executive. Alistair Phillips-Davies, the boss of SSE for a decade, talks about how the UK is really doing with its net-zero ambitions, what happened when an activist investor targeted SSE and why business leaders should be concerned about wet paint.
You listen to the episode on all the usual podcast platforms, including Substack here, Apple here and Spotify here
Other stories that matter…
1. Staff working for Games Workshop will each receive a £2,500 cash bonus after the company reported another period of stellar trading. The Nottingham-based company, which manufactures and sells fantasy figurines such as Warhammer, said that revenue for the six months to November 26 is estimated to be at least £235 million, up 11 per cent year-on-year, while pre-tax profits will be at least £94 million, up 12 per cent. The bonus for Games Workshop’s 3,000 staff is worth £7.5 million, almost double the £4.5 million pay-out last year. Statement from the company here
2. The Guardian has reported that staff at Sellafield in Cumbria have alleged there is a “toxic culture” at the nuclear site. An investigation by the newspaper has found allegations that the pressure of working at the site is linked to people killing themselves in the area, as well as claims of sexual assault and drug-use. Story here
3. British households are moving away from traditional meals in favour of snacking, according to the latest annual report into food and drink trends by Waitrose. Story by The Times here and report by Waitrose here
4. Two interesting pieces on brands that I wanted to flag. Firstly Vincent Stanley, the nephew of Patagonia’s founder Yvon Chouinard, has spoken about how the outdoor clothing group has built its brand over 50 years and gained a reputation as a responsible business. Stanley, the director of philosophy at Patagonia (an unusual job title), says: “Patagonia was meant to be an easy-to-milk cash cow. Not a risk-taking, environment-obsessed, navel-gazing company.” Last year Chouinard donated ownership of Patagonia to a not-for-profit trust. More from Entrepreneur magazine here. Secondly, the excitement, anticipation and news coverage around the launch of a new McDonald’s restaurant and sub-brand called CosMc's in the US is a masterclass in marketing, according to an analysis by Inc here. You can find more details about CosMc’s, which will sell snacks and drinks, in a BBC story here
5. A wave of tech start-ups are about to go bust in the US and Europe because venture capital investors have pulled back their spending - leaving founders short of money and time. Story by The New York Times here
And finally…
Normally this section of Off to Lunch is dedicated to recommendations for books, films, TV shows, restaurants, hotels or things to do around the UK. However, today I want to flag a daily activity - flȃneur. This French word does not have a direct English translation but basically means to stroll or wander around somewhere without a destination or plan - it is just walking around and watching.
The word has been flagged by Axios, the US media group, as part of a new series it is doing about words from other languages that do not have a direct English comparison but offer something to learn.
For those looking for further confirmation about the power of walking, check-out the latest book on Steve Jobs. The Apple co-founder passionately believed that walking inspired creativity and better decision-making. He frequently held his meetings while having a walk. You can find the Axios piece here and a digital copy of the Steve Jobs book Make Something Wonderful here
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Best
Graham