Sir Clive's iron rule at Rentokil

Dubbed Mr 20 per cent, Sir Clive Thompson, veteran chief executive of Rentokil - the rat-catching to tropical plants group - could just as well be labelled Mr Smug. Few companies can rival Rentokil for its overweening self-confidence. As Sir Clive never tires of reminding his investors, Rentokil has a record few can match. The half-year figures suggest it is now on course for a 15th consecutive year of 20 per cent earnings growth, and to judge by yesterday's progress report, Sir Clive looks set to repeat the achievement at BET, acquired for pounds 3.2bn earlier this year.

According to Sir Clive, BET's management, culture, strategy and management controls were a dead loss. Senior staff spent too much time discussing strategy and not enough on the nitty-gritty of how to keep profits and cash piling up. Their targets were undemanding; success was measured by ability to fill in forms and follow correct procedures, rather than achieving results.

It is all so very different at Rentokil, where there is no need to discuss strategy - that has been expertly laid down at the centre. In essence, Sir Clive says, the culture at BET can be summed up in the word freedom, while at Rentokil it is encapsulated by the word control. BET will be subjected to Rentokil's iron fist. Rigid cash flow and capital expenditure targets will be set, the group will be benchmarked against the best in the business and soon the profits will roll in.

So confident is he of Rentokil's abilities as a company doctor that he is going to keep the BET businesses he said he would sell at the time of the takeover. Add to that the proposed change of name and you have to wonder whether we are not witnessing here just a touch of hubris. We'll see. In the meantime Sir Clive would do well to remember the sad demise of Hanson, another group which believed in its own invincibility until the music suddenly stopped.