Chairman of the Executive Board & CEO, TKH Group, TKH Group N.V. (TKH Security division)
Alexander van der Lof in Stand van Zaken (16-03-2014)
Te gast in Stand van Zaken is CEO Alexander van der Lof van TKH, het beursgenoteerde bedrijf dat de afgelopen jaren omturnde ...
About Alexander Van der lof
In a March 2014 interview on the program *Stand van Zaken*, Alexander van der Lof, CEO of TKH Group, discussed the company's transformation from a cable builder into an ICT firm. He stated that the company's success was attributable to the organization itself rather than any single individual, saying, "de tent" (the tent) was responsible, not "de vent" (the man). Van der Lof noted that he holds approximately 1% of the company's shares and emphasized the importance of maintaining a balance of power within the company, including fostering opposition and being open to the opinions of others. Van der Lof described the company's strategic goals, stating that TKH aims to achieve organic growth of 300 to 500 million euros over the next three to five years by leveraging its existing technology building blocks and chosen markets. He also stressed the importance of striving for perfection and harnessing employee passion to reach the top, comparing the company's efforts to "een hele spannende race" (a very exciting race) while ensuring they do not crash.
Transcript (25 segments)
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Interviewer0:06
Cable builder TKH successfully transformed into an ICT company. Good afternoon, many listed companies in Overijssel have disappeared, but TKH and Ten Kate are doing well. So we asked: is it the tent or the man? We invited Alexander van der Lof, chairman of TKH in Haaksbergen.
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Alexander Van der lof0:42
The tent, because the company is strong. One man cannot make it. Everything is set up. Apart from that, TKH was known as Twents Kabel. We are a technology company with four core technologies: connectivity, cable, vision, communication, and manufacturing systems.
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Interviewer1:36
I read that in your annual report. But explain to a layman: what are connectivity and vision? Give an example.
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Alexander Van der lof1:50
For example, the second Coentunnel, where we supply tunnel technology as an integrated system including cameras, communication, evacuation, connectivity, and cable technology. This provides a complete solution that works together and relieves the customer.
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Interviewer2:18
Last week you presented better results. No crisis? And why hold the press conference in Amsterdam Hilton instead of locally?
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Alexander Van der lof2:26
We have headwinds, but due to strategy and growth markets we do well. The national press is in Amsterdam, and we also address analysts there. Bad news attracts more journalists, but there's a lack of editorial money. I was at the press conference and we gave a short intro.
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Interviewer3:43
In 1930, grandpa van der Lof started Twents Kabel. Grandson Alexander transformed it into a technology company. This week it reported 2013 turnover of 1.2 billion and profit of 62 million. A gem in Overijssel. You look surprised, but it's your company.
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Alexander Van der lof4:15
Yes, I am the third generation. It's a family business with the advantages of both family and listed company. Family brings passion, involvement, long-term thinking. But we also have to steer sometimes, which we did several times. Leadership and perseverance are key. We transformed from a cable company to a technology company, which involved risks.
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Interviewer6:24
You are the third generation, and you are also a race car driver who wanted Formula 1. Is there a connection?
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Alexander Van der lof6:26
There is a parallel between running a company and a Formula 1 team. You need perfection, passion, risk assessment. At TKH we also run an exciting race and try not to crash. I have said that running a company is like running an F1 team.
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Interviewer7:28
Are you the last van der Lof at the helm? Your children are still young. Your daughter wanted to be the first woman in F1 but stopped for financial reasons.
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Alexander Van der lof7:29
It's too early to say. There's a small chance of a fourth generation. My daughter has talent but set aside her F1 ambition. The company shouldn't be forced on anyone. I made my own choice, there was no family pressure. You have to have the will yourself.
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Interviewer8:45
You have 1% of shares, but you are identified with the company. Do you have opposition within the company? You walk through the factory and canteen?
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Alexander Van der lof8:46
It's important to have balance and open communication. I have strong people with their own opinions; they don't always agree, and I don't always win. We seek the best solution. I do walk through the factory and canteen; that's a must to stay connected. I started on the factory floor myself.
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Interviewer10:39
A few years ago you made the shift to technology solutions. How do you decide where the profits are? In healthcare, parking, building systems?
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Alexander Van der lof10:41
The shift started earlier, with the previous generation. We look at trends, we talk inside and outside the company, and develop a strategy. We then form the basic elements to achieve our goals. It's a building process over decades.
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Interviewer11:55
In the past you always had a thick wallet for acquisitions, 100-200 million. This year you said you want the investments from previous years to now pay off. You aim for 300-500 million organic growth in the next 3-5 years.
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Alexander Van der lof11:57
Yes, we spent a lot especially in 2000, adding great companies. Now we have the building blocks to realize our strategy and achieve organic growth of 300-500 million on our own strength.
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Interviewer12:55
Nedap was a running gag. Will you take it over? Do you have coffee with their CEO? And you have Marieke van Lier as a supervisory director. Is that a signal?
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Alexander Van der lof12:57
We respect Nedap's independent strategy. We have a 5% stake, which has risen nicely. Regarding Marieke van Lier, diversity in the Supervisory Board is important. We aim for the best candidate, and she is an excellent one.
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Interviewer14:22
Let's look at the economy in Overijssel. Last week 8 companies went bankrupt, but bankruptcy rates are slowly decreasing. There are 200 new startups per week. Does this give courage? You said earlier you also felt the crisis.
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Alexander Van der lof14:23
It definitely gives courage. 200 startups per week is fantastic. I think everyone could be a good entrepreneur. You have to treat your own department as your own business, that brings success by getting the most out of people.
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Interviewer15:43
I spoke with Mr. de Vries of the other well-performing listed company. They set up a collaboration without government or subsidies. You smile. Is that something?
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Alexander Van der lof15:45
It's not easy to cooperate with companies that don't belong together under one umbrella. But this is a good initiative. We found that we knew each other's companies too little. There are great example projects, like Smart Roads where we combine dynamic lighting with reflective asphalt for energy savings. We also collaborate more with the University of Twente.
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Interviewer17:55
We're at the end. Thank you for your extensive explanation and openness. This was Stand van Zaken. Next week we have Mr. van TVM. Goodbye.