(The words “Good is not enough if better is expected and best is possible” are framed elegantly on one side of the wall of the board room. On the opposite side, there is a large television set. It’s on standby mode. There is an oval mahogany table in the middle of the room with faux leather chairs around it. I count six chairs. The amount of natural light getting through into the room is just right. The room is not too big but there is adequate space to make your way around. In one of the pictures on the wall, Winnie Ngumi stands beside President Uhuru Kenyatta at a past event. She is the co-founder and CEO of Space and Style. The Company is a market leader in the building industry specializing in the manufacture and distribution of technical building materials. Space and Style has been in operation since 2002 and has registered significant growth over the years. The Inquisitor sat down with the lady behind this growth for some insights)

Take us back 20 years. Did you ever envision yourself founding and running a business entity?

Yes, of course. (Laughs)

I knew I would get into business. What I had not figured out was what kind of business I’d get into.

What led you to start Space and Style? Was there a gap in the market that you felt you could fill?

Not quite. I studied architecture in college. With this background, I thought it was best to delve into something I had an understanding of… something associated with building and construction. The market back then was small and there was not much going on. I happened to stumble upon one of our products, Decra through a chat with friends. I later googled the product for an in-depth understanding. And yes! We had Google back then (Laughs).

 (I take a mental note to find out the year Google was founded. Winnie made it sound as though this was in the Before Christ (BC) period)

At the time, Decra Roofing (AHI Roofing New Zealand) were looking for an exclusive distributor for its products in Kenya. Space and Style started off as a Decra distributor. We were and still remain the sole distributor of the product. Between 2002 and 2009, Decra roofing solution was the only product we supplied. Diversification began in 2010.

Space and Style is now in its 17^th year of operation. What does it take to ensure such sustainability?

(Pauses to think) The team! There is so much effort involved. On my part however, I have not diluted my focus. I have remained steadfast through it all during all those years. I have the organizational knowledge and that means that I know the business well. As a business grows, you must grow with it as a leader. If you have shortcomings, you look for ways to compensate. I have gone back to school to refresh. The course on Corporate Governance at the Centre for Corporate Governance was one of the first programmes I did after I started off as an entrepreneur. Our partners, AHI – Decra offered me the opportunity to take a course on a yearly basis.  I took courses in marketing, leadership, business management etc. Further, with the efforts of our partners again, we came together as the four leading distributors of Decra in Africa. We called ourselves the ‘A’ team and we would meet every 6 months at either one of the markets to study the market dynamics and learn from each other’s experience. Partnerships, collaboration and sharing information are very important in business.

What I also learnt from the corporate governance course is, where you have a gap in your team, get yourself a consultant. Every year, we get a consultant to try and boost our competencies in areas we feel that we could do better. Consultants are valuable especially when you are seeking to build your strengths as a business.

Do you have a board?

We do. People should understand that under the Companies Act, no company can be registered without a board. The initial founders or subscribers to the business would be the initial board members. There is always a board in any business. It is only that people do not know that. As an entrepreneur, you need to be aware of the existing good corporate governance practices in order to institutionalize them in your enterprise.

We expanded our board here at Space and Style last year. We brought in independent non-executive directors who have really added value to our company. 2018 came with some very interesting experiences for us with regards to governance. We started focusing more on proper board structures and formalized it all.

What necessitated the board expansion?

We have experienced tremendous growth and it was important that we expanded our board to increase the value to the organization. We are transforming from a distributor to a manufacturer. The company’s stakeholders grew, and their needs and interests increased. To manage these interests, you need more competence on the board. You need stability and you need succession. A two-board member was no longer healthy. We needed to expand the board.

Secondly, when you seek large financial support, the financial institutions that you approach audit your governance structures. This is usually a requirement and you score better if you have a board that is experienced and diverse. We brought in members for their specific competencies. Members we felt could add value. It is important to get people who are committed and who understand your business and industry. For us, it was strength, growth and a need to demonstrate succession and sustainability.

You need support in the form of advice from people with expert knowledge in specific areas. You need a sounding board that will help you appropriately navigate into the future with all the uncertainties and changes that come with it.  You need a board to advise you on the feasibility of the strategies presented to you by your management.

How did you choose your board members? Did you have a criteria?

Integrity for me was non-negotiable. You want people with values and ethical ideals. Individuals with a good reputation. You do not want to deal with reputational risk brought in by people who are meant to come and help you grow your brand and your business.

You need people who understand your vision and your business model. Some of the members we brought in worked with us previously as consultants. They understand the kind of industry we are in and through our engagement, they developed an understanding of our business. You also want people who will stay with you longer in the business. There should be diversity with regards to age though. You need a mix of older and younger directors. The younger directors will ensure continuity and will keep you trendy while the older directors will keep you sober and grounded.

Opinions are diverse as to the appropriate time to set up a board for a business. What are your thoughts?

Bring in members, independent and non-executive, as soon as you incorporate a company. You will never go broke on ideas and you will not go off track.  As soon as you start a company, invite someone in as a board member. And if you are unable to afford someone, there are always people ready to volunteer their time in exchange for the experience. You will find that it’s a learning experience for both of you. However, what I feel is not talked about is the fact that board members are not really paid enough compared to the value they bring. The sitting allowance is nothing compared to the insights they bring to the table. The first board I ever joined was in 2010 and for two years, they did not pay us, but I learned a great deal.

What lesson would you wish entrepreneurs would draw from your years of experience in business?

(Leans back on the black, executive, faux leather chair and reflects)

Patience. A business will never grow and develop in five years. If you are patient, you cultivate other fundamental qualities that will take you a long way. You develop the discipline and you become persistent. You need to be patient with yourself and the business. You also need to be brave because the business environment is dynamic and very challenging. You need to have no shame in asking questions. Do not be afraid of saying that you do not know. Ask. Inquire.

A good number of business founders also kill their business by not letting go and allowing them to grow. They do not readily allow new shareholders to inject new capital in order to scale the business. Involve others in your growth.

What would you say is your greatest asset?

I lead from the front and I practice what I preach. I also do not take things personally. With business, it is never personal. You need to dissociate yourself from the business. A challenge to the business is not a direct reflection of your capabilities as a leader. You are not the business and the business is not you.

As the Chair of the Alumni network of the Centre for Corporate Governance, what efforts is the network making in ensuring corporate governance does not remain as a theoretical concept but an actual practice that is adopted by businesses?

The network is still young. We inaugurated it in October 2018. The idea behind it was to bring together corporate governance champions that have been trained by the center over the many years it has been in existence. These persons are very influential people who are spread across Africa. We needed a pool of professionals who could conceive new and great ideas for a greater impact on our society. The network brings all these people together to share experiences, to learn from one another, to grow one another and to discuss current and future trends on corporate governance.

We have had forums of engagement with stakeholders on corporate governance and we plan on having more. The network is keen to transform the corporate governance space by championing and implementing good corporate governance practices through our members who serve on different boards.

How different is Winnie Ngumi the mum at home and Winnie Ngumi the CEO?

Laughs. Very different. I am also a different person at a social gathering or at a board meeting. This does not mean that I am a fraud. It means that I know which hat to wear at the appropriate time. However, the ideals and values that I hold dear never change.

Do you plan on listing on the exchange in the future?

(She leans in, pushes her phone further to the side of the table and forms her fingers into a steeple)

You know I might be fired by the board for revealing our strategies (Laughs). But anyway, the company is expanding, and we are systematic about our growth and transformation. The best companies out there are those with diverse shareholders. It is something we are thinking about. For you to have a sustainable organization, you must expand its ownership. You bring in more value by doing so. It is something that is in the works and it will happen at an opportune time.

 

17 years and counting. Winnie says there is so much more to come. Her insights are rich with experience and her advice does not need to be expounded on any further. Here’s the Inquisitor’s take away: be patient, ask for advice, refresh when the need arises and lead from the front.

 

The Inquisitor.