The same, but different
TomTom has been through multiple business models and targeted a wider range of opportunities than most companies with a 26-year track record. Yet, according to Pauwels, its ethos has remained constant throughout. “All four founders are still with the company and have a significant stake. That is important because while we are subject to the rhythms of the market as a listed company, our stability means we can look farther out than some other companies and execute decisions for the long term. At heart, we are still all about entrepreneurialism.”
These values permeate the entire business. “Although our size means that we have clear managerial structures in place, TomTom is much less hierarchical than other companies,” says Titulaer. “We’re not interested in ticking boxes or strict reporting lines – people talk to whoever is necessary to solve problems. Our culture is about getting things done: it’s an in-company joke that we are light-touch when it comes to support – i.e. do it yourself! – because we find it gets in the way of the entrepreneurial spirit. Nobody tells the business how to run the business.”
Pauwels echoes these sentiments. “We have no hard rules about how people work – we’re interested in individuals taking responsibility. Young people who come into the company can progress rapidly if they are willing to take responsibility.” TomTom’s open culture and flexible approach has delivered numerous technological advances over the years. “Most recently, our Road DNA technology for autonomous driving, which is critical to the future, was developed by employees working overtime on their weekends,” he says. In January, the company bolstered its autonomous driving capabilities with the acquisition of Autonomos, a Berlin-based autonomous driving start-up – following a similar path to its entry into the telematics market in 2007.
“It’s not the strongest that survive but the most adaptable.”
It is TomTom’s openness to new ideas that continues to motivate Pauwels. “Every day I get to work with great people in a stimulating environment,” he says. “TomTom continues to be at the forefront of technology. There are constant new challenges and opportunities – it’s super cool.” Titulaer agrees that the vigorous competition faced by TomTom is a major motivation: “Playing with the big boys – while still being a company based in Amsterdam – is exciting. We do things a little differently to everyone else and the fact that we’re still thriving shows that Darwin was right: it’s not the strongest that survive but the most adaptable.”
Support when it’s needed
“In 2008, when we had to restructure our debt, we needed strong partners – and ING was one,” recalls CFO Taco Titulaer. “It was a scary time because no-one knew what would happen – in our business, the financial system or the broader economy. But the benefits of our frequent and multi-level contact with ING – between CEOs, CFOs, treasury, M&A and many different areas of the business – paid off. We found that it created a broad relationship that ensured ING understood our strategic ambitions and our story rather than just looking at the numbers.”
TomTom became debt-free in 2013 and now has just a revolving credit facility to provide working capital. But it continues to value the closeness of its relationship with ING. “We know that if we find a suitable acquisition, for example, bridging finance will be there because ING already understands what we’re aiming to achieve,” says Titulaer. That closeness comes from being candid about challenges, he adds. “When I talk to our ING relationship manager I am open and honest about our problems and the day-to-day reality of the business. I expect the same degree of transparency in return because it helps me to understand where problems might emerge from.”