values which he holds so dear, “I resigned because I wanted to go after changes at the top. The people who knew the business, Ben and Andy had left and at the time I made my decision to go I was so ill that I couldn’t speak or hear. Paint my leaving how you will but it was my decision. But for the press the story of the successful French guy who was ousted makes for a better story for the headlines.”
Following Barraults’ departure Livingstone oversaw mass redundancies, amounting to over 15,000 posts, however many of these were planned efficiency savings targeting the horde of salaried network engineers trained in skills that were no longer applicable to the business. With BT writing down the value of Global Services contracts, BT’s share price plummeted and Barrault’s compensation package sparked fury among shareholders and the trade unions.
in the UK with the press more interested in the big successes and failures than the entrepreneurs who create 50% of the jobs, “it is a sad fact that in the UK only entrepreneurs seem to really understand entrepreneurs,” he says.
Since the start of the financial crisis the philosophy of investors has changed. The days of looking at high returns and investors looking at companies like a number has now changed, today they need to look behind those numbers.
Barrault is acutely aware of the challenges for businesses looking to raise funding, especially what he describes as those “between seed and the big boys, where it is toughest but where it is most needed. £3- 5m is too big for an individual but too small for the big boys.” He is looking for investments where he can see a winning differentiator, “the person is the key. I know within 5 minutes of meeting someone whether they have what it takes and understand the delivery. I only invest in things I understand. Where I think I can strategically help develop the business. I was lucky to be a successful entrepreneur at a young age. I don’t have to work to pay the bills and I don’t want to be a trader, so instead I look at how I can help.”
Francois and Dame Ellen proudly inspect the new BT Team Ellen boat sponsored boat.
Just three years on and many of the modernization and investment strategies undertaken during Barrault’s tenure are paying off despite credit going elsewhere. The BT Group posted a healthy full-year result for 2010/2011, increasing pre-tax profit by 71% with the BT Global Services division performing well, improving it’s ebitda (earnings before interest, tax, depreciation and amortisation) by 30% and returning to positive cash flow of £119 million and increasing orders by 10% to £7.3 billion. Barrault’s strategy of organic and non organic growth and holistic approach to ecosystem development may once again have paid off, even if BT executives are quick to take the credit.
Today, Barrault is refocusing his efforts on entrepreneurs and growth businesses. He has a passion for people who understand vision, strategy and execution. He is critical of the lack of recognition for entrepreneurs
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For Barrault the new metric for success is what value does a proposition bring to the community. Responsibility sits at the heart of an ecosystem, “whatever I do needs to be good for the entire ecosystem I represent.”
“When you become successful and rich at a young age you buy toys, silicon wives and sit on a beach or golf course. When you are an entrepreneur you want to build things.”
“What a good CEO or investor brings to the table is sense. We’re having a big sense crisis at the moment and for the last three or four years this been down to poor leadership. We need a new type of leader that creates sense and understands values and ecosystem who wants to resolve problems not hide from them.”
For Francois bringing sense to a chaotic world is a challenge he enjoys. Having been so ill he is now relishing new challenges and enjoying spending quality time with his family and friends. “When you are younger your rewards are more material. Now I see myself as an enabler and the rewards are no longer material. It’s not about toys anymore. It’s about working with good people, building strong relationships and drinking good wine.”
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