Benny Higgins
Encyclopedia
Benny Higgins is a Scottish Banker who is the incumbent CEO of Tesco Bank
He left suddenly under a cloud of controversy in 1997 for Royal Bank of Scotland where he became Chief Executive of Retail Banking and was involved in setting up Tesco Personal Finance (a 50:50 joint venture with Tesco). He was part of the team (alongside Fred Goodwin and George Mathewson
) that acquired and integrated NatWest following in 2000. At the time of his departure from RBS at the end of 2005 he was Chief Exec of the Retail Bank which covered both the RBS & NatWest brands. His leaving was rumoured to be due in part to his unhappiness about not being appointed to the board of the overall RBS Banking Group. However in late 2008 he stuck his head out defending the controversial former head of RBS Group Fred Goodwin
stating he said he remained “a fan of Fred,” saying he is a tough but good, boss following this Goodwin left on 31/12/08 only to see even greater public outcry over his £16m pension pot which was made public in February 2009.
In January 2006 he took the helm of the Retail Business at HBOS. However he departed at the end of 2007 after it was announced in August 2007 Rumours about his sudden departure centred around 'personal differences' with Andy Hornby
then CEO of HBOS. During his tenure Benny's conservative mortgage strategy led to a fall in the share of the market for new mortgage lending from 16% to 8% though on announcing Benny's resignation Hornby explicitly denied any link. Analysts were less kind at the time. "Benny Higgins is carrying the can ... for the mortgage debacle in the first half of this year," another said. "He was supposed to be the next big thing for HBOS, coming in from RBS to shake up the HBOS business. Obviously he's been given his marching orders." As events unfolded, however, even his critics have conceded that he was right and had the courage of his convictions. One journalist said, "He must be the only banker who was fired for being right!"
After a short sabbatical Benny returned to Banking taking the position of CEO of Tesco Personal Finance
later re-named to Tesco Bank following Tesco's buying out of RBS's share of their 50:50 joint venture on the 28 July 2008.
He has a strong literary bent, his interest in poetry attracted the admiration of Maya Angelou the guest of honour at an RBS event in 2003 when before introducing the American poet he recited with no notes 'I Know Why the Caged Bird Sings' the poem which is also the title of her biography. Whilst at RBS Benny would be found at conferences quoting from his favourite book The Great Gatsby
. More recently he used his literacy prowess to ruthless effect at a HBOS investor annual results event in Feb 2007. After Peter Cummings his then corporate counterpart told analysts he felt "very, very optimistic" about the future. Higgins told a story about Pollyanna
, the over-optimistic girl who ended up falling out of a tree. This was Benny at his best.
The book contained a mixture of homespun 'customer comes first' & 'being the best' management jargon with warnings against the dangers of complacency.
Introduction: "No organisation in our sector has earned the reputation of excelling at servicing its customers. We will."
What is admired: "Our customers will admire us if we understand and meet their needs at a price that represents good value. That means that our products, our processes, and people have to be developed around the needs of our customers."
Importance of customer service: "Every time we touch a customer, we either enhance or diminish our brand."
On Leadership: "What matters is not rank but doing the right thing. We will have a meritocracy. There is no other way."
Our values: "The values strike the right notes in terms of focus on the customers and delivery though our people."
Going forward: We are confident not complacent. We will be determined but not reckless and we will succeed."
Although Benny's Services & Value initiative was formally abandoned when he left, it is rumoured to be still used in the business. RBS later needed a multi-billion pound government bailout. Most of the loses were accrued by the board's
disastrous takeover of ABN Amro
not Benny's conservatively run Retail Division.
Upbringing
Benny was brought up in Prospecthill Circus in Toryglen, a working class district of Glasgow, Scotland. He was a keen footballer and played for Glasgow Celtic captaining the youth team.Career
After achieving a first in Mathematics at Glasgow University. Benny began his career in 1983 at Standard Life in Edinburgh initially, qualifying as an actuary in a then record 2½ years, before becoming an investment manager.He left suddenly under a cloud of controversy in 1997 for Royal Bank of Scotland where he became Chief Executive of Retail Banking and was involved in setting up Tesco Personal Finance (a 50:50 joint venture with Tesco). He was part of the team (alongside Fred Goodwin and George Mathewson
George Mathewson
Sir George Mathewson is a Scottish businessman. His father was an electrical engineer. He was educated at Perth Academy and the University of St Andrews' Queen's College in Dundee, from where he graduated in 1961 with a degree in mathematics and applied physics...
) that acquired and integrated NatWest following in 2000. At the time of his departure from RBS at the end of 2005 he was Chief Exec of the Retail Bank which covered both the RBS & NatWest brands. His leaving was rumoured to be due in part to his unhappiness about not being appointed to the board of the overall RBS Banking Group. However in late 2008 he stuck his head out defending the controversial former head of RBS Group Fred Goodwin
Fred Goodwin
Sir Frederick Anderson Goodwin CA, FCIBS is a Scottish chartered accountant and former banker who was chief executive of the Royal Bank of Scotland Group between 2001 and 2009....
stating he said he remained “a fan of Fred,” saying he is a tough but good, boss following this Goodwin left on 31/12/08 only to see even greater public outcry over his £16m pension pot which was made public in February 2009.
In January 2006 he took the helm of the Retail Business at HBOS. However he departed at the end of 2007 after it was announced in August 2007 Rumours about his sudden departure centred around 'personal differences' with Andy Hornby
Andy Hornby
Andy Hornby is an English businessman, notable for having been the Group Chief Executive of HBOS at the time of its government-facilitated rescue by Lloyds TSB...
then CEO of HBOS. During his tenure Benny's conservative mortgage strategy led to a fall in the share of the market for new mortgage lending from 16% to 8% though on announcing Benny's resignation Hornby explicitly denied any link. Analysts were less kind at the time. "Benny Higgins is carrying the can ... for the mortgage debacle in the first half of this year," another said. "He was supposed to be the next big thing for HBOS, coming in from RBS to shake up the HBOS business. Obviously he's been given his marching orders." As events unfolded, however, even his critics have conceded that he was right and had the courage of his convictions. One journalist said, "He must be the only banker who was fired for being right!"
After a short sabbatical Benny returned to Banking taking the position of CEO of Tesco Personal Finance
Tesco Personal Finance
Tesco Bank is the trading name of Tesco Personal Finance plc, a telephone and internet based commercial bank in the United Kingdom owned by Tesco, the UK's largest supermarket. Until 2008 it was a 50:50 joint venture between Tesco and the Royal Bank of Scotland, one of the UK's largest banks and...
later re-named to Tesco Bank following Tesco's buying out of RBS's share of their 50:50 joint venture on the 28 July 2008.
Controversy
A 6 foot 1 inch red-head, Benny has enjoyed a colourful private life more in keeping with his early career as a footballer (Though he played down the idea he'd of make it professionally). With his thick spectacles he may even look slightly nerdy but even early on he was described as "surprisingly witty for an actuary". He's four times married with 6 children, including twins. During his Career he courted controversy in the Scottish tabloid press since a sudden departure from Standard Life in 1997. Inside the bank a 3 point strategic drive (aiming to make RBS Retail the Best Bank to: Invest in, Work for & Bank with) was officially referred to as 'Benny's Triangle'.He has a strong literary bent, his interest in poetry attracted the admiration of Maya Angelou the guest of honour at an RBS event in 2003 when before introducing the American poet he recited with no notes 'I Know Why the Caged Bird Sings' the poem which is also the title of her biography. Whilst at RBS Benny would be found at conferences quoting from his favourite book The Great Gatsby
The Great Gatsby
The Great Gatsby is a novel by the American author F. Scott Fitzgerald. First published in1925, it is set on Long Island's North Shore and in New York City from spring to autumn of 1922....
. More recently he used his literacy prowess to ruthless effect at a HBOS investor annual results event in Feb 2007. After Peter Cummings his then corporate counterpart told analysts he felt "very, very optimistic" about the future. Higgins told a story about Pollyanna
Pollyanna
Pollyanna is a best-selling 1913 novel by Eleanor H. Porter that is now considered a classic of children's literature, with the title character's name becoming a popular term for someone with the same optimistic outlook. The book was such a success, that Porter soon produced a sequel, Pollyanna...
, the over-optimistic girl who ended up falling out of a tree. This was Benny at his best.
Management Style
In 2004 whilst at RBS Benny launched the Values & Service initiative to make his retail division 'The most admired retail bank in the world' penning a 18 page pocket book. It was somewhat controversially in appearance looking like a first Holy Communion book & its universal distribution seemed somewhat Maoist.The book contained a mixture of homespun 'customer comes first' & 'being the best' management jargon with warnings against the dangers of complacency.
Introduction: "No organisation in our sector has earned the reputation of excelling at servicing its customers. We will."
What is admired: "Our customers will admire us if we understand and meet their needs at a price that represents good value. That means that our products, our processes, and people have to be developed around the needs of our customers."
Importance of customer service: "Every time we touch a customer, we either enhance or diminish our brand."
On Leadership: "What matters is not rank but doing the right thing. We will have a meritocracy. There is no other way."
Our values: "The values strike the right notes in terms of focus on the customers and delivery though our people."
Going forward: We are confident not complacent. We will be determined but not reckless and we will succeed."
Although Benny's Services & Value initiative was formally abandoned when he left, it is rumoured to be still used in the business. RBS later needed a multi-billion pound government bailout. Most of the loses were accrued by the board's
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
disastrous takeover of ABN Amro
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
not Benny's conservatively run Retail Division.