While multiples dominate nearly two-thirds of the optical market, regional chains such as the Hakim Group are making their own giant strides. Founded by entrepreneur Imran Hakim in 2001, the group is now a family of independent opticians that can be found across the country, Hakim said. ‘We run them as independents with a back-office engine room and support system that allows them to concentrate on looking after the patients and providing great eye care.’
Not only has the group managed to establish itself, amassing over 90 optical practices since its inception, but it has created a happy environment for employees – in February it came first in the Sunday Times 100 Best Small Companies to work for awards.
‘We have our employees at the centre of the business and have tried really hard to create an environment in which they can be happy and therefore flourish,’ said Hakim. ‘Nobody has ever left our head office unless it’s been for retirement or relocation. Over 13 years in business we have a 99%+ staff retention rate.’
The award, which was solely for Hakim’s optical group (he also operates in other business sectors), was based on responses from his joint venture partners and management staff, which number between 60-80 people. The group scored highly across the board, with full marks awarded to its leadership qualities, management style and company purpose.
Continued investments
Hakim explained to Optician how the group goes about obtaining more practices: ‘The most common route for us acquiring the practice is if somebody is looking to retire or if someone is looking for a phased exit over the next few years. If so, we’ll take on the practice and we’ll tailor the exit strategy to the individual – so if they want to sell the practice then that’s fine or if they want to stay on for the next two or three years then that’s great too as they bring experience.’
Hakim said it was not uncommon to find that an existing member of the practice, when ‘given the support and backup’ that the group has, will ‘take the leap into practice ownership’. This then provides the formula for the group’s expansion; identifying suitable practices, tailoring exit strategies based on the owners needs and then establishing a new management structure supported by the group’s ‘back-room engine’.
The Darwen-based businessman said the optical industry is ‘all about working in a people business’ and that, in some companies, ‘there is room for improvement’ when it comes to managing staff.
‘The one thing that truly differentiates one business from another is those individuals in your team who are at the forefront of delivering that service and product. If enough attention is given to that workforce and those employees, then you can truly have a business that stands out.’
Hakim thinks there is an inevitable difference in the way independents and multiples address staff management, with multiples having ‘more resources to provide more for their employees’.
He said: ‘I think independents have a closer relationship because the owner is often working there day in day out with the employees as well, which can mean greater attention paid to staff.’
But he added: ‘When you’re working in small teams, like you are in an independent, small amounts of friction can often be magnified and that can create unhealthy dynamics. That’s where they find a lot of their challenges originating from.’
Imran Hakim receiving the Sunday Times award in February
This is where, for Hakim, independent practices need to step up their game. He argued that a lot of practice owners aren’t natural managers, sometimes lacking the people skills to construct dynamic and happy workforces. ‘But there’s no magic bullet,’ he said. ‘It’s something that you need to place enough importance on so that you are constantly improving it. It’s the attention to detail. It’s the small things that matter. And it’s one of our fundamental beliefs.’
Independent philosophy
With the rise of multiples set to increase, the Hakim Group might offer the alternative to the dominance of national chains. This, however, is dependent on presenting a ‘compelling and distinctive proposition for your customer’.
He said: ‘I think there is a really good place for independents, but for independents who see change as a positive thing.
‘I think the independents that will do well are the ones that are proactive in embracing the change and in going out and being different and innovative in the ways they are delivering their products and services.’
He compared the sclerotic and monolithic tendencies of some practices with the decline of certain sections of the retail sector who have not kept abreast with the technologically driven behaviour of consumers.
‘I think it’s a very dangerous strategy to just keep doing what you’ve always done. Because if we look around us, those business that keep doing what they’ve always done don’t necessarily get what they’ve always got,’ he added. ‘Opticians need a proactive approach to changing consumer technology and as a result changing consumer habits. Being proactive comes with a change in attitude towards consumer technology. Because consumer technology is now a real driver for how your customer journey should look, and what patients and clients expect.’
An important source of inspiration for Hakim is the business practices of other sectors. ‘At the Hakim Group, we are constantly looking at other industries, emerging technologies and changes in consumer behaviour to project forward three, five years, and see how’s that going to impact our business. What do we need to do today to make sure we have a strong business in 5-10 years’ time.’
Happy workplaces
Having a happy and valued workforce is one thing. But what are the economic and industry benefits of doing so?
Hakim said: ‘If you don’t have a happy workforce I think you’re fighting a losing battle. Having a happy and engaged workforce is fundamental to, and the foundation of, a healthy business. If your employees are happy and you have a happy team, the patients feel it. And if they feel they are being treated in a happy and positive environment then they will be more receptive to being loyal to that environment and spending money there.
‘Life is very short, you wouldn’t want to go to a workplace where everybody is not happy. We spend an awful amount of our time in work and I think if you can go in and work with people you enjoy working with, who are happy and enjoy what they do, then that makes your professional journey all the more fulfilling.’
Since the award, Hakim has been ‘inundated’ with calls from people enquiring about opportunities with the group.
‘It’s created a lot of interest. We’ve had lots of phone calls from practice owners ringing up saying “we see you guys are a good home for practices and we’d like to talk further”,’ he added. ‘It’s had a great impact on all levels; new people looking to join us, people looking to sell us their practice, as well as our existing employees thinking that this is a great place to be. Everybody has an extra spring in their step.’
Hakim said a ‘philosophy of constant and never-ending improvement’ helped the group move to top place in the awards, after placing 30th the year before. ‘It’s something that runs right across the business. We have this philosophy that every day we want to find small improvements so that we have this constant and never-ending improvement regime’. This, he said ‘gives you the long term, compounding effect that produces transformational results’.