John Richards, chief executive of Mentor International Management Consultants, the top ranking firm in Recruiter/Catalyst Corporate Finance’s inaugural Fast 50, has a favourite saying: “do not be afraid, get on the plane”. It is part of the reason why the business’s sales have grown by 137% in the past three years. It is also the maxim of a business which describes itself as prudent, is prepared to turn down clients, tries to avoid aggressive sales techniques and doesn’t motivate its consultants through sales commission.

And that’s the approach Richards takes to working with clients. When the manager of a state-owned shipyard called him at his London-based office on a Friday, he responded by flying out the next day and was sitting in a meeting with them in Singapore on Monday morning, explaining how Mentor could supply the staff to save the client’s project.

Mentor places highly-technical workers into oil and gas projects for petrochemicals giants like Chevron, ConocoPhillips and British Gas. Achieving marketleading growth without a sales driven environment is dependent on the company’s understanding of clients’ global needs, says Richards.

“We are quite aware of what the large and mediumsized energy companies are looking to develop. We make it our business to strategically track forthcoming projects so that we can speak to the client before the work starts — it’s not rocket science; we make it easy for them to give us business,” he explains.

The management team uses its personal industry experience to identify opportunities and sector developments — the primary function in their job role. Prior to forming the company, Richards spent 12 years working in the sector as an oil and gas industry management consultant, engaged in the development and execution of large scale onshore and offshore projects in Europe, Scandinavia and Africa.

The company’s consultative approach to placing candidates and its commitment to walking away from business or regions, which aren’t felt to be reliable or safe, hasn’t stunted its growth.

“We are quite selective of the business and clients we take on and this has meant that in 22 years of trading we have never had a bad debt — the quality of our clients is very, very high.”

This understanding is complemented by the company’s candidate database, which is built to identify what skillsets are going to be required at different stages in complex, long-term development projects. “We work on long-term projects and this stability helps secure our sales growth. These are high-profile assignments and it gives us an enduring sales pipeline,” says Richards.

The projects last an average of three to four years and Mentor is responsible for well in excess of 100 industry professionals working in various countries including China, Singapore, Australia, Vietnam, Venezuela and Trinidad.

“For example, in year one the project may be conceptualised in the US; year two the client is engineering in Europe; years three and four they might be building the project in the Far East; and ultimately it may be delivered to China or Africa or somewhere else,” Richards explains.

The logistics involved in supplying contractors in this environment led to Mentor creating a network which could provide a ‘one-stop shop’ for its clients. This means oil and gas companies pay a flat rate for contractors and Mentor is responsible for housing, tax, travel, schooling and anything else which was required to move the individual around the world, increasing the value of placements.

The move to charge more for an all-encompassing service was crucial in Mentor increasing its sales growth over the last four years since the scheme was implemented, according to Richards.

“We did change direction — I had an epiphany three to four years ago. I didn’t want to change the service fundamentally, but I felt we weren’t getting enough recognition — or sufficient value for the quality of service that we provided.”

Incentivising consultants through profit-sharing bonuses has meant the company can rely on the level of co-operation which is needed for international projects without fear of “commission protectionism”.

Each of the projects Mentor works on will involve employees in different offices around the world, Richards told Recruiter in its London-based office — the hub of an international network spreading across Houston, Lagos, Doha, Kuala Lumpur, Beijing, Seoul, Jakarta and Perth.

Using the example of a recent tender, Richards explains how the US office received a lead, the Singapore office suggested candidates and a basic pricing plan, then the London office finished the package before the US office delivered it.

In March 2008 the company went through a management buy-out, backed by Iceni Capital, which was reported to be worth £11.5m, leaving the
management with a 45% stake in the company. While the financial analysis for the Fast 50 took place before the buy-out, Richards believes this is when the company’s expansion really gained momentum and is looking to increase growth through acquisition or merger now it has the “financial horse-power”, and Iceni Capital forecasts further growth of 40% in 2008 [Fast 50 analysis was on its 2007 financial year].

Richards told Recruiter: “We are interested in a merger with a similar company of a comparable size or in acquiring a firm which has complementary geography or skills. For example, we are specifically projects-based, we don’t have any sub-surface expertise [for extraction]. We have recently met some companies who do that and would like to work in this area.” While the company is looking to aggressively expand,Richards warned that it needed to remain a sector specialist to preserve its business model, growth and profitability. This means that for the medium to longterm future, Mentor is not going to enter related sectors, such as the renewable energy market, in spite of government investment ensuring massive growth. “It’s important that we are taken seriously, and for us to do that we have to understand our clients’ technology. When new technologies are identified, there is a rush to get involved. I wouldn’t want to be too quick off the mark.”

The company is looking at opening new offices in Norway and the UAE, and also considering Latin America.

The company’s growth isn’t threatened by the global financial crisis or falling oil prices, according to Richards: “While the economy is going through a tough time, there is an undeniable and continuous reliance on energy, particularly in developing countries.” The biggest hurdle to Mentor’s growth is the ability to source staff, he says.

“The challenge for us is that the dynamics of our industry are very big and we therefore need good recruitment consultants and candidates,” he says, adding that the increase of talent in the marketplace over the last six months did not manifest itself in the way the company hoped by providing more talent. Hiring staff who are keen and enthusiastic plays an important part in evolving a naturally motivated workforce, says Richards.

Mentor uses a KPI (key performance indicator) element to monitor its consultants’ new business wins, but tries to avoid being “KPI obsessed” by concentrating on paying above market rates, offering a comprehensive benefits programme, international assignments and having managers assess staff members’ team work. Remuneration is then paid, accordingly, through an annual profit sharing bonus.

The contractors Mentor place also play an important role in winning the company business, acting as ambassadors in the far-flung regions the company recruits to, but doesn’t have an on-the-ground presence in. To ensure they portray the right image to clients they are put through a comprehensive assessment process, questioning contractors ability to work and travel in diverse arenas.

“You have to be very careful with candidate screening. Only 50% of it is for technical selection, the rest is establishing the personal motivation of the individual,” says Richards.

However, he added the company, like most agencies, could do more to win business from contractor referrals. “We get some candidate referrals, but the majority of business is self generated. We haven’t done enough of that and it’s definitely an area all recruitment business should develop,” he says. The candidates Mentor supplies are in short supply and the grip of oil and gas addiction is fuelling the need for new development and staff. Richards predicts the recent spurt of aggressive sales growth will be buoyed by continued business expansion. Developing countries will increase oil and gas field demand, and fuel the need for highly qualified staff we supply,” says Richards.

The business model makes sense. Mentor is wellplaced to meet long-term demand in the sector, with 17 years’ operating experience and a well-established international network.

The recent cash injection and the company’s plans for office openings and potential acquisitions stand the company in good stead for next year’s list.


MENTOR INTERNATIONAL

1987 Mentor established by John Richards
1991 Mentor HQ office opened in London, UK and
European operations commence
1994 Singapore office established
2002 Offices opened in Houston, commences US client
operations
2004 Australian office opened
2005 Mentor wins preferred supplier contract for largescale
oil project China and US
2006 Mentor wins international oil service contract in
Southern Europe
2007 Awarded global preferred supplier contract with
UK oil company leader servicing the Americas,
Europe, North Africa, India and Australia
2007 Mentor global headquarters relocated to new
offices in Canary Wharf, Docklands, and
management and operations team expanded
2008 MBO successfully completed with Iceni Capital