Master Servant Relationship

Prior to my life as a parking executive, I had what one would say was a “colourful” employment history in Perth from gardening, lawnmower mechanic, nursing assistant at Lucy Creath Hospital and partner in Odyssey Surfboards - a small manufacturer and retailer and finally (after having gone back to University for a Business Degree) at an incubator unit for entrepreneurs, which was part of the WA Institute of Technology Campus, before being hired by Wilson Parking.

My (somewhat unlikely) employment with Wilson Parking started a long journey that (included moving to Sydney in 1989) exposed me to the corporate world, how large businesses are structured, managed and the qualities that are essential for an executive to be successful - and also those traits one must avoid.

From Wilson Parking being a household name in Perth, it was somewhat different in Sydney, with the parking industry being seen by many as a poor cousin to the real estate corporations. This was highlighted by a talk given by a senior property executive from Bankers Trust at an NSW Property Council function who described the relationship as one of “master and servant”. No guesses as who the servant was!

 Whilst not uniform across the industry, it was not an isolated view.

Sometime after this event, we were involved in an open tender for a stand-alone carpark that Wilson had leased since it was built, some 15 years beforehand where we had put up a rent that allowed it to proceed. We had gone from an empty site at opening (and sustained substantial losses) to having it close to full weekdays with a steady weekend trade, and had maximised its revenue.

After a couple of rounds of offers ( parking tenders can be more akin to a Dutch auction with the ubiquitous BAFO at the end) we were advised another operator had bid some $400,000 per annum more than us, so we declined to match it as it could not be profitable.

At the same time, we advised the owner to make sure they had a signed lease and bank guarantee before occupation was provided, as the rent was not commercial. And we were happy to holdover until this occurred if that assisted.

They did not take up our offer, and we were given notice shortly after and vacated.

Six months later I was summonsed to a meeting with the CEO of the property group to discuss the carpark. I knew this was going to interesting when he sat down opposite me, put the size 12 cowboy boots on an adjoining chair, then leant back and started to lecture me on our unprofessional behaviour – as we had moved the majority of our customers to another carpark and they had not taken our advice on getting a signed lease – and the new operator had reneged on the rent, offered a much lower rent and we were to blame.

It became even more bizarre when he stared to lecture me on our “fiduciary duty” to them and how unethical we had been. It was no use me explaining that we were a lessee (and not a manager) and there was no fiduciary duty, had operated the site since it opened and all the customers were ours – no different to an accounting firm who moves their leased offices and takes their clients with them.

He then got up and walked out saying we would never do business with Wilson again.

Would they have let a large office tenant to occupy their building with no signed agreement? If there was a breach of fiduciary duty, why was no legal action taken? 

How a CEO of a large property group did not understand who a fiduciary duty applies to, or the entire problem was a direct result of their poor internal processes made me wonder how someone gets to this level and what other problems were occurring within the business.

It was, in a lot of ways no different to the “master/servant” comment.

What I emphasise to all the young development executives I am involved with is the value and integrity of the process, no matter how simple or mundane it might appear. The offer and final agreement are only one part of a long process – and the deal is likely to go awry without such simple steps as a signed agreement. And you cannot get everything right, but if we follow the process it reduces the risk. And if you make a mistake, do not try to cover it up – own it and learn from it.

It is said “time cures all ills” and was never truer here. A few years later there was a change of CEO, we won the carpark back and resumed the excellent relationship we previously had.

End of an Era

After 27 years as an employee with Wilson Parking , and a further 8 years as a consultant and advisor, my time with the company will shortly end. It has been a rewarding journey over a long period that encompassed everything from a recession, financial crisis, COVID, buying the Sydney Opera House Car Park and seeing the business grow into the pre-eminent parking operator in Australia.

Thanks to all who I have worked with, and especially Gary Koch who plucked me from obscurity in 1989 to start the journey.