Stephan Pudwill on taking over the reigns of his family business

As Vice Chairman of TTI, Stephan Pudwill aspires to deliver revolutionary technology for a more positive world. As a father, he hopes to instil that same passion in the next generation…

In the decade since Gafencu last interviewed you, you’ve become Vice Chairman of Techtronic Industries (TTI). Can you summarise what your company does?
TTI was founded in 1985 and listed on the Hong Kong Stock Exchange in 1990. When we began, we were an original equipment manufacturer (OEM), developing products for large retailers around the globe. But we realised early on that if we wanted control over our destiny, we needed to acquire our own brands, so that’s what we did. Today, the majority of revenue is generated by our own companies. We’ve evolved into a technology company with a portfolio of globally recognised brands developing and producing cordless power equipment and labour-saving devices. Building up our brand portfolio allowed us to generate enormous goodwill and recognition in the brands themselves, as well as cementing relationships with customers and better serving their needs. Importantly, from a sustainability standpoint, we are achieving levels unheard of in the industry through our proprietary lithium-ion battery technology, brushless motors and sophisticated electronics.

What comes under your purview as TTI’s vice-chairman?
Everything in relation to running the company, which I do together with our CEO, Joseph Galli. Joe’s based in the United States and I’m here at our Hong Kong headquarters. When you look at our organisation and how it’s run, it’s very complementary, because even though we are listed here, a big portion of our revenue is generated in the US, and a significant portion in Europe as well. We spend a lot of time on organisational development, constantly striving to strengthen our global management team and focusing on our long-term strategy. We cover the entire globe, so are constantly on the phone or in Zoom meetings. Pre-Covid, we would also travel frequently, visiting the operations, discussing product strategy and spending time with the project managers. My father, Horst Julius Pudwill [Chairman of TTI], is deeply involved in driving the long-term strategy and spending time with customers.

What are some of the benefits and challenges of working in a family-owned business?
One of the unique benefits of working together with my father is that our interests are 100-percent aligned. He’s the major shareholder; I’m also a shareholder. Our focus is to drive the business as best we can and create shareholder value. Are there challenges in terms of running the organisation? Absolutely, that’s very common when running a large business, but overall, TTI has delivered outstanding results. When you look at how the company is structured and the executive management team that is in place, I couldn’t imagine it operating any better than it does today. We set extremely high goals and we strive to achieve them.
Of course, my father and I sometimes have different points of view on certain matters, but our close relationship means that we can discuss them and various approaches to doing something. We have spirited debates and dynamic exchanges, but in the end, we walk out of the room 100-percent in agreement.

“From a sustainability standpoint, we are delivering levels that are unheard of in the industry today”

Can you tell us about some exciting upcoming projects you’re working on right now?
How much time do we have to talk about this, because we have so many projects in the pipeline! We are expanding our manufacturing and distribution footprints; we’re also focused on new product development. We have such a prolific range of new and exciting products launching in the coming months and years.

One area that is really exciting for me is our lithium-powered lawn and garden products. Traditionally in the industry, outdoor power equipment has been gasoline-powered, so from an environmental standpoint emissions are high, and there’s also a lot of noise. What we’ve achieved are sustainability levels that are substantially better and reduce both emissions and noise significantly. Certain states in the US are considering restricting the use of gas-powered equipment, so this, for us, is quite game-changing. This is just one example among countless others of what we’re now developing. We are looking forward to transforming the world in the industries we serve with environmentally sustainable products that are more efficient and safer to use.

How has TTI weathered the ongoing pandemic?
I always like to remind people that we were already doing an amazing job before Covid. The company was outperforming the market and any of our competitors. What has Covid done? Well, we’ve mastered the process of running TTI over Zoom, and that is a testament to the strong managerial processes in place. Another big area of growth is our online business, which was already growing rapidly pre-pandemic, but it’s picked up further, whether that’s through the digital strategies of our retail partners or our internal ones.
There’s certainly more complexity of physically being at meetings, but we’ve learned the effectiveness of holding them via Zoom. Back in the day, we’d have a few major meetings a year in person, but now, we’ve learned that you can hold them more frequently with more people. In some instances, we even get opinions and ideas that we otherwise wouldn’t receive. I’m not saying that Zoom will replace physical meetings – it’s so important to meet face-to-face with your team and your clients – but I think this digital element will roll over after Covid passes.

Since you last spoke to Gafencu, you’ve also become a dad. How has this changed your life?
Well, I’m now married to a fabulous woman and we have two amazing sons. I’ve always been very focused on work and running the business, but now family plays an extremely important role in my life as well. My kids, especially my elder son, is highly interested in what I do. He loves coming to the office and playing with the tools in our showroom. I love engaging with them, whether that’s through playing sports or having them watch me work. I think instilling the importance of this ethos of hard work, and an understanding of how life works in general, is critical.

My parents inculcated great values in me when I was growing up. They made sure to create an environment where you could maximise your potential and have as many opportunities to excel as possible, and I’ve tried to do the same with my sons, while at the same time ensuring they have an international upbringing.

“Instilling [in my sons] the importance of this ethos of hard work and an understanding of how life works is critical”

As the only child of one of Asia’s most prominent families, what kind of legacy do you hope to pass down to your children?
In terms of succession planning, obviously you want to structure things so that the company is organised and functioning well. That way, there’s a real legacy for them to get involved with in the future. Beyond that, as I mentioned, the most important thing is to instil great values in my kids. So, we’ve created an atmosphere where they understand the value of hard work, and tried to foster their interest so they want to be engaged and involved with the family business. It’s something that I think I’ve done pretty well. Of course, only time will tell, but my eldest son is already very keen, and loves talking with his grandfather and learning more about the business from him.

If you could speak with your younger self, what’s the one piece of advice you’d share?
I would say: think big, be bold, set impossibly hard targets and do absolutely everything to deliver on them.

If you could meet anyone, past or present, who would it be and why?
Steve Jobs. As a business leader, he did what a lot of people aspire to do – he changed the world. He developed and made products that had such a positive impact on the lives of so many. In particular, I’d want to pick his brain about product development, his philosophy on innovation, market disruption, talent, and scaling from small to big. I would also be interested in his vision of where he sees technology 20 years from today.

Finally, tell us a secret about yourself.
I’m a huge aviation enthusiast. I have a flight simulator at home – and I’m not talking about a computer monitor, it’s actually a full-on cockpit of a Boeing 737. I love flying in it, and my eldest son also shares my passion, so we sit together, programme destinations and fly together, which is a great way to bond.

Thank you.