Private View 2019: Lord Andrew Hay on land and legacy

Posted by Knight Frank Newcastle on 30th September 2019 -

In an extended excerpt from Private View, Lord Andrew Hay lifts the lid on a lifetime in real estate and talks about his experiences and learnings about the state of the industry – and what the future holds

Below is an abridged version of Andy Hay’s, Knight Frank’s UK and Global Head of Residential, interview with James W Kerr, bestselling author, business consultant, motivational speaker and writer of Legacy. The interview chronicles Andy’s 38-year history with business and touches on his experiences within the real estate industry; his thoughts on what the future holds for the firm; and what constitutes as a fitting legacy. Read the full interview in the 2019 edition of Private View on p8.

READ PRIVATE VIEW 2019

I meet Andy – Lord Andrew Hay – in a dining room in Knight Frank’s global headquarters on London’s Baker Street. It’s a perfect low-key setting that allows Hay to talk without distractions. As we chat, we’re served a memorable meal; excellent food, excellent wine and excellent conversation. “I went to school in a fishing boat,” is Hay’s opening line. As openers go, it is a good one. 

He was raised on the Isle of Mull in the Scottish Hebrides. His father was David George Montagu Hay, the 12th Marquis of Tweeddale, his mother Dee. Born fourth of five sons and a twin. His brother Hamish is now a highly decorated Lieutenant Colonel in the Army Reserves and an anaesthesiologist. “I am incredibly proud of him, he has achieved extraordinary things,” Hay remarks. 

His father, Hay says, was “a hell of a man”. He ran away from Eton in 1938 to join the Merchant Navy before the Second World War, transferring to the Navy to be “sunk three times” and “‘taken prisoner of war once” in Buenos Aires. He escaped, stole a ship with a small group of men and sailed it all the way back to freedom. Aged 24, he retired from the Navy a Lieutenant and a very highly decorated war hero. 

Civilian life, however, proved more difficult. “I remember one day he came to school”, Hay says. “He turned up in his old, old suit looking very smart, but he couldn’t afford to buy a new pair of shoes, so he wore his slippers. He was an amazing man, but by God, that motivated me. That moment lit the fuse.” 

Possessing both the pride and the kind of determination that propelled his father to war hero status, the penniless Hay was determined to make his mark, make a difference and make some money. It is perhaps no surprise, that like many Scots before him he was drawn to the bright lights of London to seek his fortune. He arrived to find a real estate business on the cusp of becoming the powerhouse that it is today. 

A customer-centric Knight Frank 

“You have to be proactive. On the front foot. Strategic. You have to think ahead. You have to plan. You have to embrace change and be agile. Most importantly, you have to put your clients first at all times. You have to care.” 

Staying on the front foot for this modern-day leader means wrestling with key strategic issues, especially disruption and the role of technology in service-oriented businesses. “Three years ago, the question I was repeatedly asked was, ‘Is estate agency going to exist in ten years? Are we going to be wiped out? Will I have a job?’ So, we thought, ‘We’d better do some research on this’.” 

Crucially, this is all underpinned by technology that must not overshadow the human element. “That is our driving philosophy,” Hay affirms. “Real estate is one of the biggest asset classes globally, yet even today there is not a single dominant global real estate platform. The sector will however become much more efficient through technology. And we’re spearheading this.” 

Partnership: the model for success

“We are still private,” Hay says proudly of the firm, “and our remarkable growth has all been done out of cash flow. No debt, no borrowing, no outside shareholders. Our real strength comes from the robust foundations and values of partnership.”

In the turbulent 1980s, while others fell in love with the idea of being the biggest, Knight Frank remained steadfast to its founding ideals. “Partnership”, Hay says with vigour. “The secret is Partnership. Up to 15 years ago everybody was doing an IPO, everyone was floating. It’s come right back into fashion. We are the largest independent, global real estate consultancy and I believe our clients value this. 

“We’ll turn over approaching $1 billion this year. The business is owned by people who work here, and we morally feel it’s not ours to sell. Not only are we reaping the benefit of previous generations, but we’re making certain that the next generation is taken care of. We constantly invest for the future. We believe in making the business better and passing it on”. 

And of course, at the centre of the Partnership, are the people. “This business is not only about understanding real estate,” he says, “it’s about understanding people. We are a service business, and for me, service starts internally. The way you treat people internally imparts to them how they treat our clients externally. So you have to get it right on the inside first, and I think we do. “Never in our history have we invested so much in our people. What we talk about is ‘good people doing outstanding work for the best clients with world class assets’.”

Lord Andrew Hay’s legacy 

“It is about being a good ancestor, planting trees you’ll never see,” Hay muses. “About passing on from one generation to the next. It means we are investing a lot, not just in technology, but more importantly, in our people. We’re remodelling how we do estate agency to be completely and genuinely client centric, completely client focused in the actions we take. Putting the client first, giving fantastic advice, great service – that’s our culture.” 

His second career on the horizon. Doing the maximum Our time together is drawing to a close. As we stand to leave, I ask him about family life. The most important question left till last. “The wonderful thing about my wife is she first met me here 37 years ago. She was temping and I was the most junior person in the firm. I didn’t see her again for 26 years. 

I married her ten years ago, and she still thinks of me as the most junior person at Knight Frank, and that is fantastic. That is a great leveller. “My children call me GOB – ‘grumpy old bastard’. You know, it’s very humbling, and that’s important. Families humble you, in a good way. “At Knight Frank we feel like a family,” he continues. “And we think like a family, and actually, when you have clients who come back to you time after time, then you end up being a part of their family. That’s pretty special.” 

I’m looking at a man who was shaped by his family and who has, in turn, shaped a remarkable family – a global organisation for sure, but also one made up of a network of clients who have come to rely on Knight Frank for information, advice and service built on trust. A man whose principles – of humility, hard work, compassion, partnership and, above all service to others – has helped create a firm in which people thrive and in which clients feel they belong as part of the family.

READ PRIVATE VIEW 2019