Peter Phillipson, Chairman, Merlin Entertainments

Feb 8 2010 by Andrew Hebden, The Journal

PETER Phillipson has spent his career creating and revitalising world-famous brands. Now the chairman of Merlin Entertainments tells Andrew Hebden of his latest ambition – to open the eyes of the world to his home region.

Phillipson demanded long-established barriers were broken down – literally in the case of the ropes which once prevented visitors from getting too close to the waxworks. Making the visitor experience interactive was a top priority, hence the Beckham exhibit which allowed you to take a penalty with the England star.

But getting the waxworks right is one thing – real people are a different proposition. Phillipson describes the process as “liberating the workforce”.

“Part of what I found when I went into Tussauds was this dreadful stifling culture. The boss barked out his orders and expected everyone to get on with it. I felt that old order of command and control outdated.”

In contrast, he sought to “harness the creativity” of his managers. He drew up a simple set of “operating priorities” – cost, consumer, commercial, culture – against which everyone would have their objectives set: “They all began with ‘C’ because it had to be as easy for me as it was for the guy that sells the hamburgers at Chessington World of Adventures.”

There followed a six-month process of securing buy-in at every level of the company. And it worked. “Once everyone started to pull in the same direction, the momentum we generated was absolutely unstoppable and the business took off like an absolute train,” he recalls.

Over the years that followed, Madame Tussaud’s opened in cities across three continents and the group bought out the iconic London Eye and secured a long-term lease for the attraction. Its three major theme parks – Alton Towers, Chessington World of Adventures and Thorpe Park – which had hitherto competed with each other, were reinvented to appeal to distinct markets.

Despite leading the business on a transformational journey, Phillipson has little desire to hog the limelight. He doesn’t do many interviews and had forgotten to mention he was made an MBE in this year’s New Year Honours for his services to the leisure industry, until he was almost out the door.

Asked to sum up his leadership style, he quotes the Chinese philosopher Lao-Tzu who wrote 2,500 years ago that when the best leader’s work is done the people say “we did it ourselves”. “I’m a huge believer in that one simple thought,” he says.

But there’s no doubt the former Newcastle Polytechnic student extends a huge influence over the businesses he has led during his career. After landing a sales job in the North East with Gillette as a graduate, he was eventually asked to move to the firm’s London HQ.

“I thought I was going to hate living down in London,” he recalls. “I thought I would give it three months then I would get a job up here and come back home. I went down to Gillette’s head office but I used to drive home religiously every weekend.”

The homesickness didn’t persist, however, and after marrying wife Julie in 1988, they relocated to Boston, Massachusetts, where their daughter Elena was born. Now 19, she has revived the family connection with the North East, where she is studying politics at Newcastle University.

Phillipson eventually left Gillette after 13 years to join Guinness as marketing director of its spirits division, before being enticed to a small holiday company called Owners Abroad. He joined the firm as managing director, rebranded it First Choice and set the firm on the way to becoming the biggest holiday company in Britain. He was eventually lured back to Guinness to head up the spirits business before Madame Tussaud’s came calling.