INTHEBLACK February / March 2026 - Magazine - Page 31
A small-to-medium business of around
50 people, Best Sheds was treading water and
needed a data-friendly CEO with a penchant
for people management. Chacko jumped
at the opportunity. Seven years later, the
company is the top shed-maker in Australia,
selling 11,000 units annually with a total
revenue of A$150 million. Profitability has
tripled since he arrived.
SAFETY FIRST
Upon his arrival at Best Sheds, Chacko
set out to reform the least expected area:
health and safety. The fact that it was not
a profit-yielding part of the business did
not make it unimportant, he says.
“We put special emphasis on safety because
every employee coming to Best Sheds needs
to have the feeling of security and safety at
work, especially in the manufacturing area.
Setting up safety and processes for all the
heavy equipment was my first objective.”
Employees need to know that leadership
values their protection, Chacko says. “If we
show that we will go to lengths to protect
them, then they will return their trust in
other ways.”
While the building industry has seen
an inflation-induced rise in the cost of
components and materials, Chacko has
found ways to mitigate the problem.
“In a volume-driven business like ours,
we won’t allow inflation to affect our
destiny,” he says. “We avert this by
diversifying the supplier base, through
bulk procurement and intelligent contract
negotiation, and by optimising the supply
chain and production.”
Chacko describes this strategy as a “lean
manufacturing method of production”.
To him, the term “lean” means refining
processes and materials. Most of Best Sheds’
components are locally manufactured in
Port Kembla, south of Sydney, and are
sold in kit form directly to the customer.
The lean manufacturing method of
production is designed to reduce the
time taken to produce items and increase
supply-chain efficiency. The manufacturing
plant is largely automated, reducing waste
and further improving productivity.
Chacko and the Best Sheds’ team have
been working steadily on further improving
manufacturing efficiency through the
development of skills matrices and the
introduction of new technologies.
MORAL LEADERSHIP
Nurturing middle management has been
central to reform at Best Sheds.
Chacko gave very clear six- and 12-month
key performance indicators (KPIs) to the sales
teams, section leaders and floor supervisors.
“I know what growth I want in each part
of the business, and so there it was for all to
see — an Excel spreadsheet that shows what
is expected,” he says. “I know my budget for
next year, as does each section. The sales offices
know what dollars they have to generate, what
calls they need to make and the conversion
rates. They have it and I have it. There is no
lack of transparency here.”
Chacko believes that there is a strong
moral dimension to management. He lost
his father at the age of eight, which gave him
both a sense of resilience and empathy for
others. A director of his local Lions Club,
Chacko says community is in his blood.
“My employees can always knock on my
door. They can always discuss an issue.
We have a lot of rules and regulations, but
they are set forward in a compassionate way.”
While he admits that the KPIs can be
tough, Chacko believes that in the right
environment, pressure works for employees,
not against them. Nobody needs to ask
for a pay increase, because the incentives
are built into the system. “They know that
if the numbers are reached, they will get
an annual wage increase.”
The success of Chacko’s efficiency-based
reward system is reflected in the company’s
growing revenue. “I work for every section
in the business by providing resources,
business intelligence and regular feedback
to ensure all sections succeed.” ■
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intheblack.cpaaustralia.com.au 31
