Big business in a small town: The story of RATIONALE’s tree change

Finding a new country home 

“I’ve found the plot!”

That brief text message from RATIONALE’s co-founder, Richard Parker to CEO, Shamini Rajarethnam would change everything for Australian luxury skincare company. 

It was 2016 and the then 24-year-old brand was ready to take the next step towards building and growing its international business. For that to happen, it needed to bring its manufacturing in-house and expand its research and development arm. 

That meant relocating to a newer, bigger space. And so began the hunt for a new location. 

Having launched and grown the business in metropolitan Melbourne, its two founders decided that a move to countryside was on the cards. Both had a strong affinity for the Macedon Ranges and as luck would have it, Richard was driving through Kyneton when he stumbled across the ideal plot of land. 

“Kyneton ticked all our boxes,” Shamini says. “We wanted a location within an hour’s drive from Melbourne and right off the highway. It was the perfect spot.” 

The logistics of moving to countryside 

RATIONALE’s new build commenced in 2020. It was a time when the world was going through the great unknown of a pandemic. Shamini and her leadership team took advantage of that period to identify and assess the challenges of the relocation for each part for the business. 

“To do this, we sectioned off parts of the business and treated them separately,” Shamini says. “For example, sectioning off our logistics and warehousing meant that we could focus on understanding the specific challenges in those two areas and what we needed to mitigate against, specifically with our service providers and partners, like Australia Post.”

“We had many conversations with Post to understand the differences between operating out of metropolitan and regional areas, and how to close any gaps in expectations of our service delivery. 

“Although Post is a big business, they have a small business mentality when it comes to relationships with its partners and clients. This made logistics one of the smoothest areas of transition for us.”

Shamini added that while they were well-prepared for potential downsides of the relocation, none of their fears came to pass. She attributed this in part to Australia Post’s own business transformation during the pandemic. 

“Australia Post was very clear where they could confidently give us answers and where they could deliver. The trust over many years of working with them really paid off for us. If we didn’t have a close relationship, I don’t believe this tree change would have been possible.” 

“Working so closely with Australia Post also helped in our communication to clients and managing their expectations. I was so happy that our business operations remain unaffected throughout the transition. It really was about having the right preparation, the right conversations and the right partnerships.” 

Working from regional Victoria 

It was one thing to find the ideal plot in a favoured location. It was another thing to tell employees that they’d soon be commuting beyond metropolitan Melbourne. The leadership team knew that this change would mean a big shift in people’s lives so they wasted no time in breaking the news. 

“We had the opportunity to share the news with everyone in 2018 and involve them in what their new workplace would look like,” says Shamini. “And we were upfront with any new hire. It was a massive transition into the unknown but it worked because of our collaboration.” 

“Now that we’ve been in Kyneton for a year, people can see the inspiration behind the move. They understand why the research lab has to be front and centre of the building. They’re able to see the manufacturing process. And it gives them a greater sense of purpose and an understanding of how all their roles contribute meaningfully to what we do here.”

The company’s Talent and Culture team also set up a flexible work hybrid model that gave employees the flexibility to work from home - and build connection through their shared experience of working in a state-of-the art facility in country Victoria. 

“The pandemic helped us understand that people can work very effectively from home,” Shamini says. “What we missed was the connection. The learning ability and the camaraderie are key for a business to thrive and grow its culture. 

“The culture of RATIONALE is so important to the founders and the leadership team. And it’s a part of the company that our people really enjoy.”

Today, most of RATIONALE’s employees carpool to work. A large number take public transport and others drive up on their own. Many, like Shamini, have grown to love the commute. 

“As soon as I see the rolling hills, I take a deep breath,” she says. “Not all regional drives are as inspiring as this one. And the sun always seems to hit the right spots. Many of us still live in Melbourne and being able to make a tree change in small doses is wonderful.” 

Tapping the local talent 

RATIONALE moved to Kyneton on its 30th anniversary in 2022. It spent six months testing its systems and procedures before launching full production at the end of the year. 

One year on, it has created 50 new jobs in research, training, production, worldwide logistics and operations. Shamini reckons this has given a new dimension to Kyneton.

“Kyneton’s legacy is being a beautiful town with a rich food culture,” she says. “We’ve given it a different flavour in terms of employment opportunity. It’s a story of a big business recognising the value of a small regional town and talent. We have a growing local workforce which I’m really proud of.”

Shamini’s advice to another business looking to make a tree change? Lean into the opportunity and bring your whole team on the journey. 

“I thought the move would be more challenging but our preparation, strong people culture and openness to embracing change made it easy,” she says. 

“Also, innovation is part of our brand DNA. One of the reasons we’ve survived 30 years in a saturated industry and market is because of our open-minded approach to progress, growth and evolution.”