Transformation and Change at Leeds Rhinos: The

Power of One John Vaughan

The background: In late 1996, Gary Hetherington and his business partner, Paul Caddick, took over
the failing Leeds RLFC (Rugby League Football Club), determined to turn around the club’s fortunes.
Hetherington had come from a coal-mining district, where his father was a colliery manager, and he
played rugby as a boy, developing a great passion for the game and its people. These early
experiences combined with his commitment to making a difference at Leeds Rhinos, set him on a
journey of innovation and change in turning around the fortunes of a club which was running a debt
of around £5 million and were at the bottom of the league, to a team that markedly improved its
league position and a club that became a commercially viable profit-making facility.

The numbers: In taking on the role of CEO, Hetherington – with no prior formal management
training – applied what he refers to as ‘common sense’ and ‘intuition’ in improving annual turnover
and profits (Table 13.1).

The approach: The strategy was uncomplicated, Hetherington underscored the importance of
keeping a watchful eye on the bottom line whilst working towards building and sustaining an
environment that was supportive of staff and comfortable and fun for fans. Allowing staff to use their
expertise and abilities, Hetherington has developed a trust-based collaborative culture, commenting
that: ‘I look at long-term strategy and I clean the toilets; I never touch operations as I have capable
managers in all areas to look after those things.’ Interestingly, the operational heads of, for example,
Human Resources, Marketing, Customer Experience, Stadium Management and the Lottery are all
women. According to Hetherington, ‘they just tend to get on with the job more and spend less time
infighting’. With controversial player issues, Hetherington is willing to spend time talking over the
issues with them in trying to find ways forward rather than over-reacting to immediate pressures.
Collaboration is another key feature including: setting up the Headingley Experience café where
members of the public can walk in off the street to feel part of the whole sporting ‘experience’; the
collaboration with Leeds Beckett university, which led to classrooms being built in the stadium for
students to work in; partnerships with rugby league clubs in Australia which saw film star Russell
Crowe take Rhinos HR boss, Kelly Gummerson, over to work in South Sydney; and collaborations
with Eton College. In building this open, supportive and collaborative culture that has combined with
good public relations, they have also been able to extend public awareness and engagement, through,
for example, the success of the Rhinos mascot ‘Ronnie the Rhino’, which has been able to catch the
attention of both the public and the media. This approach of working with people, trying to do the
right thing whilst always keep an eye on the bottom line has proven successful both financially, and in
their league performance (for example, in 2015, Leeds Rhinos won all three of the major league
trophies).

The vision: Hetherington identifies four key elements. First, business and financial sustainability to
be achieved through ongoing innovation change in making sure that the profits are used wisely in
continually reinvesting in the business. Second, to develop and build collaborative team efforts where
individuals can also shine and stand out as role models for others to follow (for example, Barry
McDermott who from a tough childhood background is now Head of Youth Development and
amusing TV pundit). Third, to be an important and central part of the community that is Leeds.
Fourth, to ensure that their facilities continually improve and that they provide a professional and
respectful service to all visitors, teams, members of the public and fans who come to experience and
enjoy their time at Leeds Rhinos. In speaking about these values, Hetherington commented that: ‘We
want to be at the heart of the community so that we are part of the glue that holds Leeds people
together [and] we want to have top class facilities so that visitors can enjoy themselves in comfort and
perhaps comment on the professional standards that we can all be proud of.’

The team: Hetherington is a charismatic and engaging CEO, who works with others in moving
towards a desired future. He encourages a collaborative team environment in which he works closely
with individuals, for example with the coach, Brian McDermott, in developing and sustaining this
supportive culture. The aim is to build a sense of belonging, of family and camaraderie among team
players who work for each other in securing victories for the team as a whole. Money is not seen to
be the main motivator nor is it viewed as the glue that holds people together. ‘We don’t negotiate
contracts,’ says Hetherington. ‘There is a salary cap and we decide the pecking order and offer the
respective amount to the player. If they don’t want it, we wish them well and off they go to another
club. Meanwhile our youth development usually has someone waiting in the wings.’ In setting
policies and working with individuals in building the team, Hetherington and McDermott recognise
the importance of: self-motivation and how what motivates one person may not motivate another;
non-critical feedback in providing constructive analyses of performance; and of clear procedures on
recruitment, retention, release, and replacement based on cultural motivations rather than financial
incentives.

The future: Gary Hetherington and the case of the Leeds Rhinos present an illustrative case example
of successful transformation and change in securing good financial results, team trophies and a
positive forward trajectory. Time will tell whether or not this can be sustained as new challenges and
issues are likely to emerge as players and staff move on and the unanticipated occurs. Whilst the case
highlights the power of one person to bring about significant turn-around and change – in the high-
profile leading role of CEO – it also calls testimony to the importance of teamwork and collaboration,
for without engaging others in this journey, the outcomes described could not have been achieved.
Questions
1. What are the major lessons that can be learned from this case study on leadership and
change?

Discuss the pros and cons of the strategy developed and used by Hetherington at Leeds
Rhinos.

What do you foresee as the major future challenges for Leeds Rhinos and how would
you go about dealing with these?
2. How would you describe Greg Blatt’s leadership style? Discuss.
3. What sort of leadership behaviour do you think is more conducive for innovative
companies?
4. What attributes of transformational or transactional leadership does Blatt display at
IAC?

5. Culture is sometimes seen as something an organization is (not open to manipulation

and change), whereas others argue that it is something that an organization has (more
open to change and revision). How does the Hetherington case relate to these two
views?

The mnemonic ‘IGOPAST’ refers to how Individuals, Groups and Organisational

Culture are the variables that affect the Productivity, Absenteeism, Satisfaction and
Turnover of staff in an organization. Can you identify one of each of the seven variables
in the Rhinos story?