Life after charismatic leadership

The death of Crazy John's founder John Ilhan has shocked Australia's business community. But National Australia Bank, the Smorgon family and the Selpam Group – who bought about 25 per cent of Crazy John's earlier this year – will be wondering, once they've paid their respects, if the company can continue to grow without its dynamic leader.

Ilhan opened the first Crazy John's store in the Melbourne suburb of Brunswick in 1991 and went on to build a $300 million company with over 120 stores and more than 600 staff. For many customers, suppliers and competitors, Ilhan was Crazy John's. He became the company's very public face and was constantly in the media, pushing the Crazy John's brand and speaking on everything from religion and sport to family and wealth. He knew how to sell his rags-to-riches story perfectly and his charismatic personality is the reason Crazy John's enjoys extraordinary brand recognition today.

That brand became even more important when the 15-year reseller agreement between Crazy John's and Telstra came to an end in July this year. Crazy John's immediately entered a new agreement with Vodafone but also started selling Crazy John-branded mobile phone plans. When the Smorgons and NAB bought into Crazy John's in July, Ilhan announced plans to double the size of the company's distribution network and introduce new products and services, such as broadband. Without the backing and support of Telstra, Crazy John's must now rely on the strength of its own brand if this expansion is to succeed.

While it will take Crazy John's some time to recover from Ilhan's death, the company should be able to carry out its growth plans. Ilhan admitted he wasn't any good running Crazy John's on a day-to-day basis and in recent years he had handed most of these responsibilities to managing director Brendan Fleiter. Chairman Barry Hamilton -- a former Hudson Conway executive -- and directors such as Richard Newton -- chief executive of Selpam -- will also be able help guide the company through a difficult period.

The most difficult thing for Fleiter will be preserving the entrepreneurial culture that Ilhan created. Ilhan was a master at managing and inspiring his staff and he was rewarded with intense loyalty. Ilhan said that it was his staff that grew his business. It is a lesson Crazy John's management team must remember.