b'Austbrokers would sit on the MGA board and provideAway from MGA, John had busily honed his operational advice and services where necessary, but its businessskills at Whittles. He spent much of his time developing model was not predicated on having a controllingeven stronger core services. John optimised the stake in MGA. They wanted the brokers just to getback-end functions and assembled a talented and on and run their business. They wanted to be in theloyal crew for his core services team, including Pat background as an investor. That seemed like a goodWarren, Heidi Whitehead, Cathy Piper, and his EA, Dot idea to us, says Allan.Hamilton-Smith. That team was soon ensconced at the beating heart of all things MGA Whittles. After the AIBA episode, John, Brian and Allan werefar more circumspect about control of the business, John also devised a remuneration scheme that better and they now thought more strategically aboutincentivised the companys body corporate managers. 54 structuring the company. The authorised representative model gave the body They set up SIB Holdings, which held 50.1 per cent ofcorporate managers skin in the game, handing them MGA. To avoid another AIBA situation, the three MGAmore flexibility and responsibility in managing their founders collectively controlled the voting powerportfolios. They went from being employed managers within SIB Holdings. to joint venture partners. Remuneration came via the portfolio management model, which gave the reps Pat Warren recalls that the AIBA experience made management rights and a decent profit share. They John more wary of peoples intentions. I think hecould vastly increase their earnings by growing their probably ended up being much tougher. Hes veryportfolios while Whittles also grew its business.resilient anyway, but it did bruise him a bit.The kicker in the deal was that after the five-year In some ways, the past five years felt like lost time.contract ended, the rep was allowed to sell their Between the politicking and general upheaval, themanagement rights and earn a tidy exit sum.business was still on its feet, but the dynamism ofthose early years was gone. Bruised, a new MGA The model increased productivity and profitability, and was emerging.helped grow the number of units under management The model increased productivity and profitability, and helped grow the numberof units under management for Whittles.'