Peter Bittó (Renocar): Our systems were well set up, but we lacked employee engagement

In this episode of the CEO na ostří nože podcast, we talk to Peter Bittó, the professional CEO of Renocar, a company that sells and services premium cars. It was founded back in 1988 as a self-help workshop registered as a cooperative. In 2011, founder Miloš Vránek handed it over to his sons. Bittó has known the family since school. From 2000 he helped transform the company into a joint-stock company, and he gradually moved from the supervisory board into an executive role.

The family decided to hire a professional CEO once the company had grown and the owners realised they were sitting on several chairs at once: as owners, board members and executive managers. That led to conflicts and inefficient decision-making. Bittó originally thought he would be at the company three days a week, but it turned out to be a full-time job. The biggest challenge was building the management team and convincing people that the new management model would work. Bittó admires the family for managing the transition, because it isn’t easy for someone who built a company for thirty years to stop getting involved in day-to-day operations.

The transition also had an unexpected effect. In the past, one person had all the answers. Once responsibilities were split, people sometimes heard “I don’t know, ask someone else” and felt that management wasn’t competent. It also turned out that some managers had never actually made decisions. They had only carried out the owner’s decisions, so the responsibility stayed with him. Bittó also had to part ways with a manager who saw himself as a “problem solver” and often fixed things outside the system. His job should have been to set up the system so that problems didn’t arise.

Bittó studied at the Czech Technical University and for a long time saw business as a matter of cybernetics: set the systems up correctly and you get the right results. Renocar’s systems were well set up, but it lacked employee engagement and loyalty, a shared understanding of the vision and consistent communication. He now describes company culture as the “soft glue” that brings life to the system and boosts performance. After a few amateur attempts, the company decided to work on its culture systematically with professionals. One of the first lessons: it’s not enough to tell people that the company’s performance depends on each of them. You have to spell out what is expected of them in behaviour, communication and approach to work. Renocar therefore communicates more about how the company is doing and is developing soft skills in lower management. Team leaders used to be mainly specialists. Now they are learning to lead people.

What else will you learn in the podcast?

• When it’s time for a family business to hand management to a professional CEO

• Why it’s hard for founders to stop getting involved in day-to-day management

• How to teach managers to take responsibility for their own decisions

• Why a “problem solver” can hurt a company more than help it

• Why well-designed systems aren’t enough on their own

• How to guide a company through BMW’s new business model

For Peter Bittó, moving from a family business to professional management doesn’t end with a new organisational chart. The new structure only works once people at every level know what they are responsible for and are willing to take on that responsibility. That’s a long journey, and it starts with top management.