It’s good to read…

So interesting, so interesting.  If you’re a writer, one of the pieces of advice that seems to be given by experienced writers is that you need to read.  Read everything that interests you.  Read material that may not appear to be relevant to your own writing.  Just read, it’s never wasted.  

I agree with that.  

Currently  I’m reading a book called ‘Shredded:  Inside RBS, The Bank That Broke Britain.’  It’s a fairly hefty tome but what comes through is how one individual, enabled by those whose focus was only on profit to the detriment, eventually, of customers, can take down a company and all but melt down the UK’s financial system.  

George Mathewson was the CEO of the Royal Bank of Scotland, RBS, from 1992 to 2000 and is credited with turning around the bank and making it a major financial player. He became chairman in May 2001 following the retirement of George Younger.   Mathewson was also responsible for hiring Fred Goodwin, a micro-manager and control freak.  Goodwin, also known as ‘Fred the Shred’, hence the title of the book, comes over as a thin skinned and vindictive individual who made short shrift of those who questioned him.  He was rude and he was a bully.  His senior management morning meetings or ‘morning beatings’ as they were known were dreaded.  He would pick on one individual and then berate that morning’s ‘victim’.  There was also a culture of fear throughout the organisation made worse by what was known as the ‘rank and yank’ reward system the bank introduced.  The ‘Vitality Curve’ to give it its proper name, was pioneered by Jack Welch, CEO of General Electric.  It was a brutal and counter productive system that ranked people as an A (20%), B (70%), or C (10%).  Look it up, not pleasant.  

Mathewson must also take responsibility as must the Board of Directors who appear to have known about Goodwin’s bullying and did nothing.  No, let’s not call it bullying, let’s call it what it really was, psychopathic behaviour.  Everything was fine as long as profits were made.  

Goodwin’s behaviour reminded me of some senior management I met when I used to analyse and evaluate organisations in a previous life.    It’s called the Dunning-Kruger effect.  In short, it’s where people mistakenly assess their cognitive ability as greater than it is.  

Goodwin was / is an obviously bright man, but something must have been missing in his ‘make-up’ that caused him to be such a hated individual and yet ignore it.   Maybe he had people around him who wouldn’t tell him the truth, they knew that if they did, they would lose their job.  The result is that, in the short term, you can appear to be a trail blazer.  In the long term you end up overrating your ability since no-one will tell you differently.  The consequence is that you lead your company into a situation where it will fail spectacularly.  

Or a country.  

Finally, a quote from last week which made me smile:  I earned my spurs on the battlefield; Donald Trump earned his spurs from the doctor.’   (Former General and Defense Secretary James Mattis.)

Ba-boom!  

J J Mitchell

‘No one left behind’

4 thoughts on “It’s good to read…

  • 28th October 2019 at 4:19 pm
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    Sadly there are so many more than Fred Goodwin out there and rarely does it seem that any action is taken against them. Where was the Chairman and all the Non-execs when it was happening? Or were they frightened of him too? I suspect when he continued to make money for them, they didn’t look that closely at his behaviour.

    Reply
    • 28th October 2019 at 5:13 pm
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      Unfortunately there are and I met quite a few in some of my past roles. As you say, where were the Chairman and all the non-execs? I imagine that some were intimidated by Goodwin, but others really liked the money and the social prestige.

      Interestingly, when RBS almost went down the tubes, the Scottish Establishment took its revenge and had his knighthood revoked. Sublime.

      Reply
  • 29th October 2019 at 4:21 pm
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    Bloody brilliant post!

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  • 29th October 2019 at 4:28 pm
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    Thank you, Tootsie, appreciated.

    Reply

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