Chief Executive's Blog - Hanley Building Society

FORUM FEEDBACK

2012-01-25T08:14:00.002Z

We held our first Customer Forum of 2012 on Saturday morning with 20 of our members quizzing me on a range of topics. I really enjoy these sessions and am constantly surpised by the depth of feeling amongst local people on key issues in our marketplace.We have been holding these Forums for several years now and of course the low interest rate environment for savers is a recurring theme, but other matters came to the foreground on Saturday, notably the impact on the mutual sector of potential contagion from the eurozone and the need to persist in our efforts to assist local first-time buyers. Obviously hosting a Form every few months helps me to understand how The Hanley is viewed by members , meeting them personally and with no formal agenda, but it also influences my thinking on member appreciation of the risks we face in our business.If ever complacency were to creep in ( and I'm never normally accused of that !) then a brisk Customer Forum session is sure to refresh and revitalise. The highlight of Saturdays Customer Forum was talking proudly of our recruitment in January of two new apprentices, Jordan (16) and Lauren (17). Aside from making us all feel very old, these new recruits epitomise our optimism for the future and our commitment to developing our own talent to meet the many challenges we face in the future.

THE MYTH OF TALENT

2011-12-29T11:19:00.002Z

Having devoured more than my share of turkey and of chocolate over the past few days I've also begun devouring some of my Christmas gifts.I started with the DVD of the superb Danish thriller The Killing, and I managed to consume all 20 one-hour episodes over just 5 sittings, so I am now hunting the 2nd series with my HMV vouchers. My appetite then shifted to the slim paperback called Bounce by Matthew Syed, journalist and former international table-tennis champion. His book aims to debunk the notion of the "talent myth" that super-achievers are born not moulded, and he trumpets the extraordinary successes we can all achieve if we practice enough, work hard and believe in ourselves. His anecdotes are really inspiring and the book is an optimistic and stimulating slant on the recipe for sporting and business success. This time of year seems to accentuate my appetites for so many things, and I am sure some January trimming will be required, but the core messages of Matthew Syed's book will stay with me long into 2012.

REASONS TO BE CHEERFUL

2011-12-02T12:59:00.002Z

Over an expresso this morning with a golf buddy of mine we were bemoaning the prevailing gloom this week, punctuated by the Chancellors Autumn Statement, the public sector strike,the intensifying crisis in the Eurozone and yesterdays Financial Stability report from the Bank of England. Our antidote to this was to create a list of "reasons to be cheerful" (as the late,great Ian Dury once declared)...we came up with the following gems; 1. Coffee is apparently now good for you. 2. Stoke City are through to the knockout rounds of the Europa League 3. Julian Barnes novel "The Sense of an Ending" 4. Berlusconi is NOT our Prime Minister. 5.The mild weather is predicted to persist this weekend so golf assured. 6. We are not in the euro. 7. I am going to see Coldplay in Manchester on Sunday. 8. The sheer doggedness of charity fundraisers. 9. Gary Oldman in Tinker,Tailor Soldier,Spy. 10. The John Lewis Xmas TV advert. 11. Having great people in our businesses. 12. A new Jaguar car plant for the West Midlands 13. Rory McIlroy 14.The Leveson enquiry. 15. Children of all ages at Xmas................and so many more reasons I'm sure.

STAFF SURVEY

2011-11-07T15:12:00.002Z

I've been heartened and humbled by the superb results from our recent survey of staff opinions. In the midst of an austere and unpredictable economic environment, the way our staff feel about working at The Hanley is emphatically positive. Amongst the most eye-catching results are ; 88% of staff would recommend The Hanley as a good place to work........ 92% of staff believe they're encouraged to take personal responsibility for their work quality and performance........95% fully understand the organisations aims and objectives.......86% state that their line manager encourages them to take initiative and make decisions. Naturally we have areas where we need to refocus our efforts . These mainly surround career progression (which isn't always easy to engineer in a 60 person firm) and the need for more training and development ( I will really start to worry when our staff have an appetite for LESS training).So a valuable and instructive exercise, as well as a motivating one. We believe that if we continue to treat our staff well then they'll continue to treat our customers that way too.

BOOKSTORES ARE GREAT

2011-10-04T13:46:00.002+01:00

I felt a bit guilty reading a weekend newspaper report about the 25% fall in the number of independent booksellers in the UK over the past years.My guilt was based on my buying habit of using Amazon to purchase books these days because it is just so easy to do so.I probably buy 5 or 6 books a month and so I'd be a regular customer of a local bookshop if I'd gained such an affinity. ( I am currently really enjoying Andrew Rawnsley's book on the rise and fall of New Labour; The End of the Party)
I then rationalised things a bit more by reminding myself that I do occasionally use a local bookstore in Hanley when I am in the city centre but I'm not aware they have an on-line offering so all I am really doing is exercising "channel preferences" to suit my buying behaviour. If pressed I'd also admit that buying books on-line is fun, but not as enjoyable as browsing a bookshop. In reality, 21st century retailing is all about giving customers a range of choices in how to do business with you but never compromising on service excellence. I would however gladly support the Booksellers Association's goal of helping creative and entrepeneurial people who run bookshops to thrive by cutting car parking costs in city centres. Many of us who believe in local branches on the High Street would welcome more imaginative measures to revitalise town centre shopping .Sometimes there is no substitute for face to face expert advice.

"GENERATION RENT"

2011-08-30T13:31:00.003+01:00

It didn't take long for my relaxing Bank Holiday weekend to recede, as I switched on this morning's Today programme on Radio 4 to hear Ruth Davison of the National Housing Federation predict that the proportion of home-ownership in the UK could plummet to 63.8% in the next decade, ( a level unseen since the mid 1980s) unless we tackle the "crisis of the chronic under-supply of new homes". The research commissioned by the NHF predicts higher rents and an entire generation "locked out of decent housing". No punches pulled there. Certainly the historically low level of new homes built last year creates a supply-side problem but in reality the demand-side has deep fractures too, most notably on affordability and the way house price inflation has out-stripped wages growth. This latter dimension of a multi-dimensional problem makes the plight of young, aspiring first-time buyers more acute as they feel compelled to rent as mortgage lenders (rightly) insist that they demonstrate an ability to pay before a mortgage is offered. Escalating rents in high demand locations have led some to forecast that rent levels will rise by 20% over the next 5 years.So "Generation Rent" face the vicious circle of having incomes squeeze as rents rise and wages fail to keep pace with rising inflation , making it hard to save for a (larger)deposit and so having to continue to rent. .......so whats the answer? Well, no sound-bites from me on a layered problem such as this but I still believe that home ownership is an emotional desire and an aspiration for most people in the UK. Demand is high and supply can be improved by more efficient planning guidelines as envisaged in the new Planning Policy Framework announced last month, and a move away from the quantity targets which gave us an over-supply of inner city flats.Strategic initiatives by government and by developers to stimulate the buying process are welcome as is the repositioning of housing nearer the top of the political agenda. It may also be time for a re-appraisal of controls, standards and the degree of competition in the private rented sector. In the meantime as a lender we will continue to play our part too, by helping first time buyers in our locality to save for a mortgage and to obtain an affordable mortgage on the right property for them.

HONORARY DOCTORATE

2011-07-15T07:55:00.002+01:00

Yesterday I attended Staffordshire Universitys graduation ceremony to receive my honorary doctorate degree. As Lou Reed would say "just a perfect day". Sunshine, lots of smiling faces, and a very proud and humble CEO of The Hanley on stage to receive my awarded degree. It was a real privilege to be there and to be recognised in this way, a testimony to all my colleagues at The Hanley over the past 9 years who have worked tenaciously to do the very best for our customers and members. I was struck by the professionalism of everyone involved in the organisation of the event and by the delight amongst my contacts and colleagues in the University's Business School at the achievement of all their students. These are tough times for the higher education sector, on the cusp of a radical shift in funding. The need for a demonstrably excellent student experience and strong employability credentials will be distinguishing features in an increasingly competitive university sector. From my own exposure to Staffs Uni over several years ( and many more to come I hope) this particular organisation will "shine" and future students are in good hands.

NAMES MAY CHANGE BUT.......

2011-07-11T15:23:00.003+01:00

On Friday I played in the annual Building Societies Association golf day at the Leicestershire golf club and managed to win the event with the lowest net score (66 as you ask). The trophy I won is a handsome, silver "layer cake" engraved with winners dating back to 1930 when a gentleman named C.O.Marshall from the Abbey Road building society won the event at Walton Heath golf club. Since then the list of societies engraved on the trophy include Colchester Permanent, Huddersfield & Bradford, Middleton and the Burnley as well as more recent "plc converters" such as Woolwich and Halifax. The rich history of the mutual sector is always engaging but the list of names also reminded me that , despite media coverage to the contrary, the consolidation of our sector is not a new phenomenon. Building societies have survived and thrived through market turbulence and many boom & bust cycles. More UK adults than ever before do business with mutuals, and although the flavour may change the mould is still fit for purpose.

BOARD STRATEGY AWAY-DAY

2011-07-01T09:35:00.002+01:00

We have just held our annual Board "away-day" to review our strategy and agree priorities for the coming financial year which starts on 1st September. You could be forgiven for thinking that a strategy for a small building society right now can be summed up in one word....Survival...However, we like to think we can do a bit better than just survive, and in any case the survival instincts of small, local mutuals over the past few years since the "credit crunch" and through the recession have been commendable. If this era in financial services has taught us nothing else it must surely be that big aint necessarily beautiful. The author Peter Drucker once commented that " strategy is not about forecasting the future,it is about understanding the future implications of todays decisions". None of us can claim to be experts in predicting what the future holds but we can strive to make decisions for this business which put us in a strong place as the future unfolds. To do that we need to identify our strengths and play to those, evaluate the likely risks we face and create a range of products our members will want. We also aim to be distinctive in the way we deliver service. No amount of TV advertising by large banks proclaiming their commitment to outstanding customer service can guarantee the much-desired reputational enhancement for those banks, but it is curious to watch our large plc competitors try to mimic the way we do business. Our strategy day was challenging, thought-provoking, interactive, productive and enjoyable. Easy for me to say that I know, but the acid test would be, what would a Hanley member think of our day-long discussions had he/she been an observer?My firm belief is they'd have been reassured and impressed by the conviction and the vision shown by the Hanley Board.

BSA CHAIR

2011-05-18T15:55:00.002+01:00

I have recently just completed my year of office as Chairman of the Building Societies Association,an experience I thoroughly enjoyed as it provided me with a broader appreciation of the spectrum of issues facing the mutual sector and an opportunity to influence the direction of development. Mutuals have much to offer, primarily because we are owned by our customers (members) and are not answerable to shareholders demanding a dividend for their financial stake. But mutuality in itself is just an organisational form, and we need to give it meaning by our focus on outstanding service and competitive products. The mood of the mutual sector, as reflected at our BSA Conference in Birmingham earlier this month, is a mix of optimism and realisation that we need to seize the chance given to us by the current plight of the state-funded banks and customer thirst for financial expertise that they can actually trust. Building societies have been around for many decades (since 1854 in The Hanleys case) and whilst we don't want to live in the past, we believe that many of the virtues we demonstrate are in high demand in our 21st century marketplace. Our job is to refashion and remould without jeopardising the core values of mutuality. An exciting challenge and one we are relishing at The Hanley. It is often assumed that making a product or service more contemporary requires a cutting-edge- technology solution, and of course the smartphone generation have created new market dynamics, which we all try to wrestle with and benefit from, but in fact successful business is about adapting and staying relevant, without compromising on quality. For every Apple there is a Burberry and for every Amazon there is an Innocent.

WEMBLEY MAGIC

2011-04-18T08:24:00.002+01:00

There can only be one blog topic this morning; the magnificent 5 nil win by Stoke City FC in yesterdays FA Cup Semi Final at Wembley. The Mighty Potters simply demolished Bolton Wanderers in the biggest landslide victory in a cup semi final for over 70 years and the city of Stoke has a broad grin on its face this morning. I have felt for some time that the progress of Stoke City over the past 3 years has been the single, most powerful regeneration impetus for this area and that view is crystallised this morning. Much of the credit lies with a bunch of players who are totally focused on making the most of their talents but I think the clubs success is a triumph of leadership. The manager Tony Pulis has a quiet dignity but a steely approach to implementing the plan that he and his chairman formulated 3 years ago. Stoke have had their detractors. Normally its the lazy journalism and the easy sound-bite of Stoke as "long ball, long-throw, limited but committed"type of summary, but in reality the team is vibrant, well suited to the rigours of the Premier League and full of individual craft. Leadership has brought out the best in the team. Leadership has taken the club to new heights. Leadership makes the city proud of Stoke City. Many congratulations to messrs Pulis, Coates and the leadership team at the club.

SENTINEL BUSINESS AWARDS

2011-03-31T11:18:00.002+01:00

On Tuesday evening The Hanley won the award for Customer Care & Service at the Sentinel Business Awards attended by over 350 local business people from across North Staffordshire.We were thrilled to hear our name announced as the award-winner, so much so that all 12 Hanley staff charged toward the stage to be photographed accepting the handsome statuette! Bear in mind that this group of 12 staff represents 20% of our total workforce and you'll get a sense of just how energised we were.It was a superb event, not just because we won an award.As a showcase for all that is progressive and creative about this area the Sentinel Business Awards is exemplary and it reminds us all that this City is capable of outstanding results even in extremely adverse market conditions. Locally there has been huge disappointment and astonishment that Stoke was omitted from the governments list of cities deserving of Enterprise Zone status and it often feels that successful businesses in this area have head-winds to face that other cities don't, but on this particular evening it was really refreshing to hear success-stories from so many local firms. Part of the joy of winning is definitely the fact that its was local recognition of our strengths but also that we were "competing" with businesses from outside our financial services sector.This added to the sweetness of the award. From a personal point of view I was also very pleased to be introduced to David Frost the Director General of British Chambers of Commerce, a chap I've admired for a long time and whose advocacy of the business community is 2nd to none. Obviously I told him that mutuality is a 21st century business opportunity!

FIRST TIME BUYERS

2011-03-07T15:41:00.002Z

One of the questions I'm most often asked is What does The Hanley do for first time buyers? This question tends to assume that FTBs are a unique group and meriting very specific attention , in terms of products and service, an assumption I'd challenge as I'd caution against seeing FTBs as a homogeneous group and an accurate barometer of a healthy housing market. This is simply because the FTB market has changed markedly from the traditional view; it is much smaller than it used to be (approx 200,000 FTB transactions are likely this year, around half the level of peak years) and is more diverse than it once was. For instance the average FTB is in his/her early 30s and around 8 out of 10 FTBs now rely on help from the bank of mum and dad to gather a suitable deposit . Consequently it is important for a lender like The Hanley to have a range of options for prospective FTBs so that we can cater for the spectrum of needs they will have.That's why we have fixed and variable rate products available , as well as shared ownership advice.But most importantly, my answer to the question at the top of this blog is that The Hanley concentrates on FTBs in our heartland territory because that means we can sit down with them at one of our 6 branches and explore what is right for their particular circumstances. We believe in the value of trusted, face to face advice and nowhere is that more relevant than with a first time buyer.

GOLD STANDARD

2011-02-11T10:53:00.002Z

It has been a memorable week, punctuated this morning by the announcement that The Hanley has been awarded Gold standard by Investors in People (IIP) following an intensive inspection of our procedures, communications and customer commitments. We are absolutely thrilled, not least because it puts us in an elite group of 1% of IIP firms who are bracketed as IIP Gold. The credit for this goes to our wonderful people who work here, the most talented and tenacious bunch that I've ever had the pleasure to work alongside. Much is made in the media right now of the extent to which customers have been let down by the banks and it's easy to make a case that banks seem not to have learnt any humility from the last few years, but my colleagues at The Hanley could never be accused of letting down our members. In a way it is simple to unite 60 staff behind an intention to deliver outstanding prerformance and customer service, because the business is small enough to wrap your arms around it and to calibrate progress, but I'd argue that it is also feasible to do so in a large firm. Recruiting the right people, motivating and developing them with clear goals and a shared view of what success looks like, alongside a commitment to doing the right things (as well as doing things right) seems like a recipe for a Gold standard in anyones language.
Whilst some of the big banks may be "too big to fail" from a systemic risk viewpoint I don't believe customers should allow them to regard organisational size as an excuse for poor service, lack of attention to personal circumstances or inappropriate product sales. Judging by the recent glut of adverts from banks about their intentions to become "customer friendly" maybe bank Executives see that too.

ANNUS MIRABILIS

2011-01-17T14:01:00.003Z

This latin phrase means "wonderful year" or "year of wonders" and was originally used by the English poet John Dryden to reflect on the year 1666. My attention was drawn to the Annus Mirabilis of 1971 in a recent article in Word magazine, a year in which the following albums were released.....Led Zeppelin IV , Hunky Dory (Bowie), Imagine (John Lennon) Whats Going On (Marvin Gaye) Sticky Fingers (Rolling Stones) Blue( Joni Mitchell) LA Woman (The Doors) Surfs Up (Beach Boys) Every Picture Tells a Story (Rod Stewart) American Pie (Don McLean)..... a vintage collection of gems, and arguably some high-points in careers, all of which are fondly remembered by many of us 40 YEARS LATER. A truly remarkable feat, and a clearly amazing year. I should point out that, although all these records are in my CD collection now, I didn't buy them in 1971......I was only 12 years old then.! My point is that longevity demonstrates sustainable quality and of course few people in 1971 would have predicted a 40 year (minimum) durability for this music. So when we ponder all the gloomy predictions about 2011, we may soberly consider that this year could become our annus mirabilis if we make the most of our opportunities. Who knows, maybe our outputs now (in arts and in business) will have a profound influence on future reminiscences. I bet the flared-jeans and long-haired music critics of 1971 didn't predict that the year would yield 10 of the best albums ever recorded.

ANNUS MIRABILIS

2011-01-17T14:01:00.000Z

HAPPY CHRISTMAS

2010-12-13T13:45:00.003Z

''So this is Christmas, and what have we done? "
Well at The Hanley we've completed another successful year as evidenced at our recent AGM and in our annual report & accounts, both in terms of financial performance and member endorsement. In a tough market we have continued to win business and to do so in a way which is in the long-term interests of our members .
Less parochially, and much as I prefer to look forward rather than glance back the way, 2010 has had some very pronounced peaks and troughs. The low points include;
... the dullest football World Cup in living memory, punctuated by the droning din of the vuvuzela and hectares of discounted merchandise after Englands puny elimination.
... a dreary General Election, followed by the musical chairs of the coalition formation.
....the inexplicable success of the "comedian" Frankie Boyle

High points must be;
...the rescue of the Chilean miners.
...the gold medal performance of Amy Williams at the winter Olympics
...the Swedish film version of The Girl with the Dragon Tattoo
...the Ryder Cup victory at Celtic Manor

No doubt 2011 will unpack it's share of surprises. Meantime may I wish you and yours a happy Christmas and a healthy and prosperous new year.

BIDDULPH WELCOME

2010-11-05T10:54:00.002Z

The highlight of my week has been the opening of our new branch in Biddulph. The welcome we've received from the local people has been extraodinary and many have already become Hanley members having previously used the premises when occupied by Cheshire building society.Our aim is to be the "go to" place for mortgages , savings and investment advice for everyone in the local Biddulph area , and we've made a fantastic start. Our new branch team is a blend of Hanley experience and new faces, all very determined to shine and to deliver all that is great about a local mutual , with a focus on excellent customer service and tailor-made products.
I've had a fair bit of media reaction, querying why we have bucked a trend of bank branch closures, but reminded commentators that building societies unlike the big banks have sustained a commitment to branch networks, even during the turmoil in our core markets over the past 2 years and in fact several other societies have announced new branches in recent months (eg Newbury BS and Harpenden BS)
The local branch really is our finest demonstration of what we stand for, in terms of service, accessibility and brand values. Of course any branch is only as good as it's staff and on that score,I'd pitch my teams against any other, no matter how big the organisation is or how many TV adverts they use to proclaim their"customer charter".
We are thrilled to be in Biddulph and look forward to many years serving that local community and doing business in the town.

DIVERSITY IS A VIRTUE

2010-10-12T08:04:00.002+01:00

The heads of several media groups,including ITV and BBC, have written to Business Secretary Vince Cable urging him to block any attempt by Rupert Murdoch's NewsCorp to take full control of BSkyB on the grounds that such a move "could reduce diversity" in the marketplace. Whatever the merits of their specific case (and I have to admit to being a reader of The Times and avid watcher of SkySports) the importance of a diverse market with genuine consumer choice is compelling.Diversity in business is a contemporary topic and I am struck by the potency of the argument for diversity in our own marketplace .A recent research report by the Oxford Centre for Mutual and Employee-Owned Business makes that case very powerfully, reminding us that a more diverse financial services sector promotes systemic stability and offers benefits to individual customers by increasing competition and choice. The report emphasises that mutuals bring a market dimension based on service and member-engagement with low risk-appetite and high customer endorsement.Such characteristics are worthy of support from decision makers and regulators if only to put competitive pressure on the banks where the current market share of the biggest 6 banks in gross residential lending is excessive . In a thought provoking report the author Jonathan Michie also finds time to advocate a Minister for Mutuals. Now that would go a long way to convince many that the coalition government's promise to " foster diversity in financial services" is a genuine one.

INSPIRATION & PERSPIRATION

2010-09-16T13:21:00.003+01:00

Last night we held our annual staff meeting to platform our corporate plan, business targets and ambitions for the coming financial year (which begun on 1st Sept) . It gave me the chance to set out our expectations for the year ahead and to join my team in outlining how we intend to propel The Hanley forward so that we can continue to strive to be "Britains Best Local Building Society".
The theme of the evening was Exponential Change.
We spoke about the challenges in our core markets of savings and mortgages, and about the localised challenges of our city where regeneration progress is likely to be hampered by budget-cuts in the public sector.We also discussed our plans for the new branch in Biddulph and the importance of being distinctive in our distribution and our marketing. I found it really inspiring.....and thankfully I wasn't alone in feeling that way.....as it is so motivational to work alongside people who are sharply focused on being successful and determined to deliver the best we can for our members.
Alongside the inspiration there was perspiration too as I hosted our quiz night, which covered TV & movies (no surpise there) and a lengthy musical round where contestants had to identify the intros to well known pop and rock songs. Sadly for some of our directors and senior managers the tunes proved to be not that "well known" and the winning team was populated with 20 and 30 somethings .
A reminder also that the potent blend of competitive spirit and teamwork is a winning formula.

FORECASTING

2010-08-27T16:42:00.002+01:00

Since returning from my family holiday I've been taking a fresh look at our business plans, goals and targets for the coming financial year, which for the Hanley starts on 1st September.( a bit quirky I know but the date is a legacy of our long history and we are wary of changing to a more conventional financial year)
At the core of our thinking on 2010/2011 are a series of assumptions on how markets will perform in the months ahead, what the interest rate and inflation numbers will look like and how we can carve our niche amidst the ever-changing trading conditions. In such circumstances it would be a delight to be able to rely on economic forecasts but my recent reviews of even the most eloquent of "experts" reminds me of the quote attributed to JK Galbraith that " the only function of economic forecasting is to make astrology look respectable".
Even the Monetary Policy Committee has taken some stick in the media for its failure to get much right when predicting the future , but most of us are not hoodwinked into thinking that anyone really knows with assured certainty what will really happen in the UK economy. Best-guessing is about as much as we can expect .That's why it is vital for a business like ours to evaluate, monitor and control risks and not indulge in new ventures which depend on a rose-tinted view of the future. It is also why it is essential for us to keep working on what we are already good at, refine what we do and stay flexible. At least I can forecast that we will enter our new financial year full of optimism in our ability to do precisely that.

SPANISH CAJAS

2010-07-23T11:54:00.002+01:00

Normally when a member of staff at The Hanley stops me at the coffee machine to chat about Spain,the conversation focuses on their holidays to the Spanish coast or my annual golf trip to Marbella, but this morning I was quizzed about the plight of the Spanis Cajas. These small local banks are tipped by some market commentators to struggle to pass the current round of "stress-tests" being undertaken for banks across Europe and my colleague wanted to know whether there were any crossover similarities with small UK building societies. Of course some common ground does exist in that cajas and local building societies, like The Hanley, are locally based and are not quoted companies but that's really where the similarity ends.
Cajas are not mutual, customers are not members,and do not own the business. Cajas are heavily influenced by local political control and their lending is heavily influenced by that control.
Cajas are also exposed to the new-build development market in Spain where planning rules and the funding crisis left many sites empty and worth far less than was lent on them at the market peak.
It will be interesting to see the results of the stress-tests on the banks across Europe and indeed to look at the perceived strengths and vulnerabilities of all banks not just the cajas in Spain. But mutuality and resilience remain distinctive features of the UK building society model and if the past 2 years have taught us anything at all it must surely be that large organisational scale is no guarantee of success.

CHAIRMANS LUNCH

2010-07-09T09:38:00.002+01:00

Yesterday I had the pleasure of hosting a lunch for the Chairmen of 10 different societies. One of the benefits of being Chairman of the BSA this year is that I get to meet the leadership of other building societies and hear about the successes and challenges that are occupying boardroom time.I am always struck by the energy and insight that exists across the sector and by the optimism that is expressed about the relevance and importance of mutuality in a diversified marketplace. The chairmen are always keen to know more about what the BSA is doing and how we can demonstrate resilience across the sector, despite the clear fractures in our core markets of savings and mortgages. Yesterday I was particularly struck by the appetite for change amongst the group of chairmen;there was no sense of yearning for a "golden era" of the past but rather a desire to get on and thrive in a new world, whatever that world may look like. I don't know if my words to them were at all motivational, but as a group they certainly motivated me!

THE SOFTER STUFF

2010-06-12T09:58:00.002+01:00

This week I spent 2 days in Bournemouth with the Chief Execs of 5 other building societies and 14 of our staff on the final session of our Achievers Academy, which was set up to help develop our own business leaders of the future. Over the past 12 months this group has undertaken a range of tasks and heard from various guest speakers on topics which can be broadly grouped under a leadership-development heading. It's been hugely enjoyable spending time with ambitious and dedicated people, so keen to learn more about how our mutual businesses can continue to thrive .The logic behind the Achievers Academy is that small, local building societies are distinguished by the quality of our people and the service they deliver.
Tomorrow I have the privilege of presenting the prizes to the winning runners in the Potters Arf Marathon which the Hanley is sponsoring this year, for the 3rd consecutive year. Some of our staff will be amongst the 1500 runners and several more will be around the course encouraging all the participants. The logic behind this sponsorship is that we want to demonstrate our commitment to our local community and be associated with such a successful, local event.
I guess, at a time when liquidity, capital , regulation, funding and low mortgage demand are the dominant features of everyday business life, these 2 events could be viewed as softer priorities . But they're really important to the Hanley and to our determination to carve a distinctive niche in an overcrowded financial services marketplace. They're also great fun.

INTEREST RATES ON SAVINGS ACCOUNTS

2010-05-18T16:31:00.002+01:00

Following my last blog a member reminded me that " a smiling face still needs to be backed up by competitive rates" and pointed to our ISA rates as being currently adrift of the keenest on the market. I'm always grateful for feedback, even when its not entirely complimentary, and of course this topic is invariably a hot one whenever I speak to members at our Forums or in our branches. The truth is that we are in uncharted waters with a bank base rate of 0.5% and a lending market which is at best lukewarm. This means savings rates are under pressure across all banks and building societies. Of course at any given time a firm can offer a market-leading deal as a hook to attract new savers, sometimes with gimmicky "bonuses" or simply because they need to bring in funds virtually at any cost to remodel their balance sheet. But the Hanley in common with many other building societies chooses to strive for competitive interest rates over the longer term and to retain a true balance in our business so that the society is not jeopardised by paying interest rates that are unsustainable. We keep our savings rates under constant review and we will always strive to deliver the very best we can for our members. We aim to be around for many years to come, unlike some banks which offered eye-catching rates in the recent past and who have since folded.

THE MAGIC KINGDOM

2010-04-20T13:12:00.002+01:00

I've just returned from a family holiday in Florida and our first exposure to the whole "Disney experience". We stayed at one of the Disney hotels and spent most of our days at one of the theme parks , and although my personal favourite was a park that Disney doesn't own ( Universal Studios) I was really blown away by the customer service excellence that prevails right across this amazing business. The courtesy, humour, and pride in their business shown by every Disney employee we met really added extra zest to our holiday. Critics may question the sincerity of the service - offering, but I never found it fake at all. On the contrary it made me reflect on how crucial it is for our customers to believe WE trust and believe in our building society, before we ask them to do likewise. A culture of service excellence is still elusive in many UK businesses and thats one reason why building societies have a fantastic opportunity to outshine competitor banks. I wont be asking my branch teams to wear Goofy hats but they'll get plenty encouragement to give every customer a warm welcome, a smiling face and a genuine interest in how we can help them.

THE ART OF ENGAGEMENT

2010-03-31T09:37:00.002+01:00

Earlier this week it was my privilege to collect The Hanleys award from Britains Best Companies , an accreditation for our overall comitment to staff engagement in our business. This is our 2nd consecutive year of being given a First Class rating and we are very proud to be amongst this elite.
However the customary photo-opportunity was not set up in the usual venue of a London hotel but was instead held at a special day of experiencing The Art of Engagement at a purpose-built centre in Milton Keynes where myself and 3 colleagues were able to participate in a series of development exercises on the 8 factors of workplace engagement; Leadership, Fair Deal, My Manager, My Company, My Team, Wellbeing, Persoanl Growth, and Giving Something Back. The huge warehouse space was split into zones and each had a focus on the very best practices associated with these key topics.
It was a refreshing start to the working week, and a slightly surreal experience. More crucially for me , the chance to be around other business people from different sectors of the economy is always an opportunity to re-establish my perspective on how The Hanley is doing.Too often we get a bit insular and compare ourselves to other building societies or other financial services firms. We should work hard to bear comparison with great customer-service providers in other markets, as that is how we really want to be judged.
The Art of Engagement declares that " Success is determined by the strength of relationships within your organisation. Quality conversations create quality relationships,and great relationships drive effective organisations that deliver results". Sounds very compelling to me.

FUNDING CHALLENGE

2010-03-16T08:13:00.002Z

I was stunned to read in the weekend press that the BBC is taking 125 staff to cover the World Cup in South Africa in June. This is 5 times the number in Fabio Capello's squad and they're actually trying to win the tournament not just film it! Now I realise the BBC is not reknowned for being frugal but surely even by it's own standards of ostentation this is over the top. The BBC has a source of funding (the licence fee) which is a throwback to the early days of TV where a distinctive public-service channel was pioneering , but in a 21st century media where customer choice prevails it is bizarre that a tax (the licence fee) is paid automatically to the BBC while other channels must seek competitive sources of funding.(eg. subscriptions or advertising revenue).
Having read the article I started to think about sources of funding in our business and our reliance on savers.We see this as a real strength because it means that we fund our mortgages solely from money we attract from savers rather than money we borrow on the wholesale market.This enables us to plan better and to minimise our exposure to external risks. However the way that savers do business with us as a building society hasn't changed in decades. Passbook accounts and fixed term bonds remain very popular because they are simple and tangible, but I can't help but admit that some aspects of our savings offering merit updating. I am not contemplating current accounts or ATM- based banking as that's not where we choose to do business but I do believe that a 21st century mutual has to be alert to the needs and behaviours of emerging markets in our core areas of savings and mortgages. It seems to me that for instance a first time buyer loan linked to a web-based savings plan is a progressive way to attract retail funding in an era of customer choice,but we would want to retain the beneficial characteristics of our passbook acounts,namely simplicity and transparency. Watch this space!

BANKING BANANA SKINS

2010-02-24T15:54:00.002Z

I was intrigued to read a recent survey by the Centre for the Study of Financial Innovation that "political interference" is regarded by bankers as the No 1 risk facing banking worldwide.The report describes the risk outlook for the banking industry in 2010, and samples the opinions of 400 bankers and regulators across 49 countries. The prevailing view is that whilst government efforts to rescue banks from the financial crisis may have staved off systemic collapse, the industry is now deeply politicised and this "banana skin" is seen as more risky than others such as credit risk, liquidity, and capital strength. As a risk "political interference" has several angles, including the distortion of commercial judgement,the creation of moral hazard, and uncertainty about how financial support will be removed.
Clearly the key factor shaping perceptions is the state of the global economy and most macro-economic trends were viewed pessimistically, with recent signs of recovery regarded as fragile and vulnerable to after-shocks. But implicit within the surveys No 1 banana skin is a fear of regulatory over-reaction ,which could impede an already tentative recovery.However to be fair to the regulatory authorities only 9% of respondents felt that the industry was "well prepared" to handle the risks identified and 11% thought the finance sector was "poorly" prepared to do so. My own No1 banana skin would be the pace of recovery and the absence of any momentum toward a post-recession strategy.In short, a governmental reality-check would be welcome. All businesses, not just in the financial sector, are wrestling with the new recipes for success in an emerging, post-credit crunch environment. What is clear to me is that reinvigourating the financial services sector needs to start with rebuilding the trust of customers and I take great heart from the fact that building societies have retained some powerful credentials to excel in doing just that.

MIDLANDS EXCELLENCE AWARD WINNERS

2010-01-22T15:15:00.002Z

For the last 4 years our teams at The Hanley have strived to adhere to an "Excellence" model as defined by EFQM, which is a European benchmark for outstanding business performance. This means that in all we do our aim is to achieve standards of "Excellence" through best-practice and continually sharpening how we develop our people, processes and service to customers. We think that Excellence should be in the DNA of The Hanley, because that's what will differentiate us from competitors and help us carve a niche in the over-crowded financial services marketplace.
Some weeks ago we learnt that we were nominated for an award at the prestigious Midlands Excellence annual awards ceremony held at the ICC in Birmingham and attended by over 1200 people from businesses across East and West Midlands, from both private and public sector. Firms such as Carillion, Semens and ESOS were also amongst the nominees and The Hanley was the only building society in the running for an award.
I'm absolutely delighted to say that we attended the event last night and WE WON !!
Our "Excellence" credentials were deemed to have out-shone the others and we are now the proud holders of the Midlands Excellence Award for 2009/10. I am thrilled for all the staff at The Hanley.Their commitment to the society is unrelenting .For all of us it is a privilege to receive such recognition , particularly given the calibre of the other businesses nominated for the award.

2009-12-16T16:30:00.002Z

Like many building societies, The Hanley has worked hard in recent years to demonstrate true member-engagement using various initiatives to keep in touch with our members and to invite dialogue. Our website,our member newsletters and our quarterly Customer Forums with myself and board colleagues have proven very valuable in ensuring that we are steering the business on a course which members can understand and support. Again this year we were proud to achieve 24% of members voting on our AGM resolutions as this level of voting will be amongst the very highest in the building society sector. These voting members gave the board outstanding backing with 97% in support of our annual report& accounts for our financial year 08/09,96% in support of the re-election of directors and 91% in favour of our remunerations policy. We are extremely grateful to our members for their unstinting loyalty and support, which we never take for granted and we know we must continue to earn in such difficult recessionary times. May I take this opportunity to wish all our members a very happy Christmas and a healthy and fulfilling 2010.

BSA ANNUAL LUNCH

2009-11-18T10:00:00.002Z

Last week I attended the annual lunch hosted by the Building Societies Association (BSA) in London, along with Chief Execs from about 20 other building societies and representatives from regulators, government departments and business partners. The lunch itself was punctuated by a very strong and thought-provoking speeech given by Graham Beale, Chairman of the BSA, whose day job is Chief Exec of Nationwide. Graham spotlighted the resilience of building societies in the face of the current economic storm and our ability to just get on with doing what we always do, despite unfair and heavily-subsidised competition from those banks which are part or wholly owned by the government following their financial collapse last year. I know that Hanley members are bemused by the savings rates being offered by the likes of Northern Rock and Natwest banks as I have first hand experience of trying to explain how our own self-sufficiency makes it impossible to match those deals! Graham also focused on the future threat to the building sector as a whole if FSA proposals to reclassify certain external capital products (known as PIBS) come to fruition. All in all a very earnest mood was in the air. However I found my own enjoyment of the lunch was enhanced greatly by the fact that I sat next to Loretta Minghella , Chief Exec of the FSCS. As well as being a very interesting professional with a legal background and a sound grasp of the challenges facing small building societies like The Hanley, Loretta is also the sister of the late Anthony Minghella,one of Britains finest ever Film Directors with a body of work that includes Cold Mountain, The English Patient and The Talented Mr Ripley. Anthony died aged only 54 in March 2008 . I was completely captivated by Loretta's stories about her brother and her candour and warmth put some of our business challenges into very clear perspective for me.

MORTGAGE MARKET REVIEW

2009-10-28T16:12:00.002Z

The FSAs recent discussion paper on the future shape of the UK mortgage market is a sobering read.Restrictions on self cert lending and fast-track loans alongside an increased focus on "toxic" combinations of risk and on granular checks on affordability are a predictable regulatory reaction to the perceived shortcomings of lenders and intermediaries. Lets not be coy; a review is necessary. There have been significant failures in the mortgage market, an absence of risk-pricing and over-supply of easy credit.A review is needed to understand what happened and to make sure the big mistakes are not repeated in future. BUT the UK mortgage market was not uniformly flawed nor was it full of failed business models. The market has been innovative, competitive and effective in helping many people buy their own home. The review is timely but it needs to take a proportionate and measured view of the mortgage market, so that a healthy baby is not hastily despatched with the bathwater. My hope would be that we all learn lessons from the events of the past 2 years but that we also acknowledge the value in the choice, competition and diversity in the UK mortgage market so that a refreshed market emerges rather than the unintended consequence of restricted customer access to suitably tailored products.

FTSE ON THE MEND?

2009-10-05T10:13:00.003+01:00

Whilst few people are claiming that the UK economy is on an inevitable pathway toward sustained recovery , the FTSE index has given us plenty recent signs of optimism. The FTSE 100 index has actually risen by just over 50% since its low level in March this year and in the most recently reported quarterly growth figures investors have seen gains of over 20% in just 3 months, the best quarterly performance in the FTSEs 25 year history! Of course the damage done to stock markets around the world by the credit crunch and recessionary conditions means that the base point of comparison is a low one, but that doesn't alter the fact that recent investors in FTSE stocks have had a very fine 2009. This compares very starkly with the historically low interest rates on traditional savings accounts.Of course the risks and rewards are different when you compare a building society account with a FTSE related product and that is why anyone contemplating an investment in the latter should undertake a full fact-find with an Independent Financial Adviser(IFA) to establish the most suitable portfolio based on their risk appetite. But clearly our customers will want help in weighing up all their options and so I'm proud that The Hanley is one of only a handful of building societies with its own subsidiary IFA business (Hanley Financial Services) so that our members and customers can get exactly that sort of professional,trustworthy advice. Retail savings from high street providers can co-exist with FTSE linked investments.......the link is the customer need and the provision of independent financial advice.

FTSE ON THE MEND?

2009-10-05T10:13:00.000+01:00

BSA DEPUTY CHAIRMAN

2009-09-15T13:55:00.002+01:00

Last week I was privileged to be elected Deputy Chairman by fellow members of the Building Societies Association Council. The present Chairman is Graham Beale the Chief Executive at Nationwide so I'm delighted to be in such exhalted company! My brief will be to assist the Chairman in promoting and protecting the interests of the building society sector during this period of seismic change in our financial landscape. Specifically I want to represent small,local building societies whose franchise with customers remains very strong despite the turbulence in financial markets and whose traditional business model should be nurtured and strengthened , and certainly not damaged by the inevitable regulatory focus which will (rightly) emerge as a consequence of the demise of some of our larger UK banks. Small building societies have a key role in providing choice and distintiveness in our marketplace .If the credit crunch and the recession have taught us one lesson it should be that big isn't necessarily beautiful. What matters is the quality of a business and it's proximity to customers needs , not it's asset-size, and that is another great reason for mutuals to be optimistic about thriving in the emerging new financial services world.

HAPPY NEW YEAR

2009-09-01T11:50:00.002+01:00

For historical reasons our financial year begins on 1st September, which makes us unique amongst UK building societies where most favour a match with calendar year-end in December or tax year- end in March. However, we quite enjoy being different, especially as this will give is the chance to display how well we have hurdled over the various barriers that 2009 has presented us with. This week we'll spend many hours crunching the final figures for our year just gone but we already know that we have much to be proud of in generating a strong surplus (profit) and continuing to cut our costs. We've completed less mortgages than in previous years but that wont surprise anyone, given the fragility of the housing market and our reputation for avoiding risky lending.We've also lost some retail balances to the part-nationalised banks, which is a bit galling as they've been able to use taxpayers subsidies to artifically inflate their interest rates on some accounts. But our strong local membership remains intact and our tremendous confidence in a bright future for The Hanley is undiminished. In fact our annual report and accounts for year ending 31/08/09 will confirm that we are a strong, local building society in fine fettle, well-prepared for the inevitable challenges of the coming year and beyond. A very happy new year to all Hanley members and to all our future customers.

"TRANQUILITY BASE,THE EAGLE HAS LANDED"

2009-07-20T14:20:00.002+01:00

I was 10 years old when Buzz Aldrin announced that Apollo 11 had landed on the moon surface and Neil Armstrong took those small steps and giant leaps. I remember the fuzzy TV images and the sense of wonderment that men were exploring another planet. Forty years later we can reflect on perhaps the most theatrical example of mans scientific progress and also the most amazing testimony to the fulfillment of a politicians pledge. President John F Kennedy had promised in 1961 that America would reach the moon and return it's astronauts safely to earth. In our current era where pledges and manifestos are less like tablets of stone, more like pillars of chalk,it is hard to know where JFK got his sheer ambition and bare faced cheek! Maybe part of the answer is that he was a true leader, a statesmen and a man with purpose to match his vision. It's hard to see where our generation of leaders will plant their flag. In 40 years it would be a revelation to think that 2009 was the junction point where bold intentions on climate change, 3rd world poverty or cures for cancer were implemented and not just talked about.

A LANDMARK DAY

2009-07-10T08:00:00.002+01:00

This really is a landmark day for The Hanley Economic Building Society. Today we are moving to our brand new, tailor-made head office at the other side of Festival Park. It's not a long distance to travel ( we can even keep the same postcode) but it signifies our optimism and ambition for our future as a thriving local, independent mutual. It is invigourating to demonstrate our belief in this great business at a time when so many others in our marketplace are having to retract and to limit their future-planning. The new building is a contemporary,open-plan design with an emphasis on spatial and energy efficiency, and ease of access for customers and staff. We have been in our current building since 1992 and the market environment for all building societies has changed markedly in the years since then but my sense is that the next few years will see an equally radical change in the financial services landscape.However The Hanley is very well placed to seize the opportunities that change inevitably brings, and we will relish the chance to continue demonstrating our strength as a business with local roots and a modern verve.
But just for today our main task is transporting boxes and setting up our new home.

CAPITAL CHANGE

2009-06-22T07:49:00.002+01:00

The recent events at West Bromwich Building Society led to a collective sigh of relief in our sector. For some weeks there has been speculation that the West Brom could go the way of the Dunfermline Building Society and some of the media seemed to extract glee from the difficulties faced by another mutual. Thankfully West Brom has confounded these cynics by gaining access to a new form of capital which will allow the society to swap some subordinated debt for a new instrument called Profit Participating Deferred Shares. (PPDS). This means that the West Brom ( and presumably other societies) can benefit from the flexibility and percieved higher quality of tier 1 capital through PPDS rather than rely on the more rigid and less favoured (as the name suggests) subordinated debt which typically exists in the form of long term loans with a fixed interest rate payable.
However the new PPDS leaves the West Brom (and the building society sector) with a new conundrum. Mutuals don't have to maximise profits for shareholder yield.But holders of PPDS may well seek maximum returns.How will societies with PPDS balance the needs of mutual members ( savers and borrowers) with the potentially divergent needs of PPDS holders? Watch this space!

"If you think change is tough........"

2009-06-10T13:05:00.004+01:00

The sheer scale of the changes announced yesterday by the Lloyds Banking Group take your breath away. The closure of all 164 Cheltenham & Gloucster (C&G) branches with the loss of 1,660 jobs is acute enough but news that Intelligent Finance will move out of the market for new mortgage business and Bank of Scotland will exit the intermediary mortgage market simply intensifies the sense that these once great "brands" are now collateral damage in the rationalisation of the group. When I first joined the building society sector 20 years ago C&G was my fiercest local competitor.They had slick systems and a fine reputation as a progressive building society but now like others who converted to PLC ( eg. Alliance&Leicester, Bradford &Bingley, Halifax, Northern Rock) their logos will soon become the stuff of nostalgia. But for me our financial services landscape in the UK is much poorer for the absence of such locally-established players.The local flavour offered by our thriving building society sector in 2009 remains something to be of which we should be very proud and protective. But clearly we need to adapt and to get even closer to what our members need by getting even better at the stuff we do well. As someone once said, "if you think change is tough,wait till you try irrelevance".......

2009-05-27T11:22:00.002+01:00

This week my wife treated me to a fantastic birthday gift of a trip to see Eric Clapton at the Royal Albert Hall. The venue was spectacular and the gig was really superb. We also took time during the afternoon to visit the Victoria & Albert museum which is a favourite place to view the glittering heritage of wonderful art that we have in this country. During our trip around the British art segment we were both taken aback by the volume of magnificent works which were manufactured right here in Stoke on Trent. Majestic pieces from Minton, Wedgwood, Spode and others grace the halls of the V&A and remind us of just what a powerhouse city Stoke on Trent once was and how pivotal it's businesses were in the late 18th and 19th century.
Inevitably this made me think about how the city has coped with the pace of change and how leadership over many decades has allowed the contemporary world to overtake the local, traditionally strong industries.Of course change is inevitable and nowhere is immune.But change can be managed, and opportunities seized. In relation to The Hanley, we strive to combine the verve of a modern, customer-focused business with the traditions and roots of a locally-based building society. The pace and depth of change in our sector remains challenging and frenetic at times but we are extremely optimistic that this local building society is not a museum-piece,but rather is a vibrant contributor to a diverse financial services sector where we like to glance back occasionally but where we much prefer to look forward and seek ways to make our own mark.

TRUST US

2009-05-14T16:28:00.003+01:00

Party politics interests me about as much as crocheting or skydiving, but it's just impossible to ignore the spectacle of our elected MPs scuttling to repay those expenses that are now deemed excessive. Frankly if they think this will recapture public trust I think we need to tell them that horse bolted long ago. Trust is hard-earned but fragile. Financial services firms ache to be trusted by their customers and the credit crunch has undoubtedly damaged that trust. But putting things right after you've made a blunder is only one part of rebuilding trust. I think people generally want to see real contrition and a genuine will to do better in the future.Politicians proclaiming that they "didn't break any rules" are missing the point;it's not legality that is the issue ,it's greed.
Building societies have a long history of earning the trust of their members and we work really hard to preserve that trust. We don't seek the moral high ground nor do we get it right all the time but I believe that Hanley members can expect us to be trustworthy, transparent and fair and can call us to account if we slip up.

BRITANNIA MEMBERS SAY "YES"

2009-04-30T14:04:00.002+01:00

With a resoundingly positive member-vote at their AGM this week in favour of the merger with Cooperative Financial Services (CFS) our near-neighbours the Britannia open a new chapter in their history as they become a £70billion "super-mutual " with 9 million customers and over 12,000 staff. The Britannia /CFS merger has been a topic of much discussion amongst my business contacts and our staff here at The Hanley. The main question asked is;how will the merger impact The Hanley? My answer is simple; I fully understand the logic of the merger and the synergies between those 2 businesses, but we are a local building society with a fiercely proud intention of carving an even stronger niche as our competitors grow larger. The combined Britannia/CFS will be 200 times the asset-size of The Hanley and so it would be foolish for us to just mimic what they're offering. We will focus on our north Staffs roots and on our ability to offer genuinely tailored,personal service to each of our customers.....no call centres,no hierarchy , just a local,mutual building society working hard to earn and deserve the trust of all our customers old and new. As I said, simple really.....

HOW MUCH?

2009-04-22T13:44:00.002+01:00

Watching the BBC coverage at lunchtime of the Chancellors budget my over-riding emotion was sheer incredulity at the size of the numbers quoted. Government debt to be funded by gilts and bonds will top £220 billion. I doubt I can really grasp what that number means, other than in terms of its relativity to previous levels of debt, and in that regard it is simply huge. All those zeros at the end of a few digits probably diminish the meaning for most people, but what is pretty clear is that it will take many years for the UKs ratio of debt to GDP to return to levels previously regarded as "prudent" and of course politicians will be focused on their own recipes for recovery. In a week where a ratings agency has reacted very aggressively to some rated building societies I wonder how well-protected the AAA rating of UK PLC is right now. Any threat to the reputation of our economy as worthy of investment will be very damaging, and not just for the government in its efforts to offlload all those gilts and bonds.

MICHELLE OBAMA IS COOL !

2009-04-03T14:58:00.002+01:00

She electrified the teenage girls of the Elizabeth Garrett Anderson school in Islington yesterday when she dropped in on a surprise visit and Michelle Obama probably did more for their motivation and focus on learning than any amount of curriculum revision could ever do. She told the girls that "being smart is cooler than anything in the world" and urged them to "control their own destiny" by working hard on their education. Wow! So as well as being elegant, poised and graceful, America's First Lady is also blessed with leadership skills too.She knows that the post- G20 world will be a better place if more of our children can be urged to blossom through education.
Thankfully her husband seems like a cool guy too.

BOARD STRATEGY DAY

2009-03-26T09:47:00.002Z

Yesterday the Hanley Board spent a full day reviewing our business strategy and planning our key strategic goals for the next few years. We do this annually. Our aim is to assess business performance and refresh our thinking on how best to continue with our successes as an independent local mutual. We have an unusual financial year which ends on 31st August so we were able to discuss our very creditable results at the half- year end as a platform for evaluating our priorities in the short and medium term. We also discussed our distribution plans, our IT strategy and the impact on the society of a sustained period of low interest rates.
It is a day that I personally relish It reinforces my belief in the strength of our Society and in the distinctive part we can play in our heartland marketplace, and it also makes me realise just how much we are still capable of achieving for our members and customers. The next job is to translate our strategic goals into ongoing implementation plans, all of which I can assure you will be positive for Hanley members and will demonstrate our optimism for the future.Watch this space!

VARIETY IS THE SPICE

2009-03-13T16:26:00.002Z

If ever a single day can encapsulate the fantastic variety in my job then it has to be today.Let me explain. Having been away from my desk since Wednesday morning I spent a couple of hours first thing today sifting my post and responding to various correspondence and emails, before heading to Keele University for an annual meeting of the Nominations Committee that I am privileged to sit on. I really enjoy ricocheting into the world of academia and the people at Keele are great. I returned to my office at lunchtime to compete in the putting and boules competitions being organised by our Customer Services team to raise funds for Comic Relief. I made sure that I was victorious at putting by playing until I got the hang of the tricky contours of the green, ie. the bobbly carpet. Clutching my box of Roses as a hard earned prize I then spent 2 hours in a meeting with some of my senior management team discussing how we should alter our savings rates and SVR mortgages following last weeks 0.5% cut in bank base rate. We have become accustomed to agonising over the delicate balancing of the needs of savers and borrowers, challenging ourselves to be always transparently fair and still remain commercially astute with the interests of the Society at the core of every decision we make. I am always hugely impressed by how hard we strive to do the best we can for our customers and today was no different. Next up is a review of the week with my Finance Director and a first read of some proposals on a strategic paper which we plan to take to Board on 25th March. It has been a varied day for sure.

SIZE ISN'T EVERYTHING

2009-02-27T09:09:00.002Z

This week has been all about contrasts in scale.The magnitude of the losses declared by RBS and by the Lloyds Group is almost too huge to digest. These banks have competed for the title of Biggest Loss Makers in UK corporate history and the press has been full of tales of corporate largesse and individual greed. Meanwhile back on planet- mutual, I had the privilege of attending the AGM of our local competitor The Stafford Railway Building Society whose results for 2008 demonstrate that, by sticking to the business that you know about, you can achieve profits, growth and efficiency even in a turbulent market. Stafford Railway is less than half the asset size of The Hanley and has only one branch (in Stafford) but I have more admiration for their business acumen and customer focus than I could ever muster for the banking giants of the financial services sector. Maybe now the hackneyed image of a local building society as a crusty relic of a more benign era, will be shed once and for all. Surviving and thriving in a contemporary market is about how good you are not how big you are. Both the Stafford Railway and The Hanley will I'm sure work hard to continue proving that point.

WHY BLOG NOW?

2009-02-16T13:35:00.000Z

An odd time to post your first blog, you may think. And understandably so.At a time when the financial services industry is emblazoned across newspaper headlines and as lead story in numerous TV broadcasts (and for all the wrong reasons) why would any CEO choose to break cover and encourage 2 way communication!!?? Well aside from the obvious kudos of being able to tell my children that I've joined the 21st century information super-highway from the sliproad of traditional communications methods, I genuinely believe that small, local, mutual building societies like The Hanley, can be beneficiaries of the changing public mood. Virtues such as trust, reliability, solidity and security are now high on the customers wish list. I can recall plenty of occasions in recent years where commentators viewed small building societies as crusty and dull, more akin to a Hovis advert than a contemporary financial services business. But not any more.We have plenty to offer.In truth we always did. I intend to use my blog to comment on how we will thrive in the emerging new landscape.