Member Article

Well done RBS!

Accidents happen. It’s how you deal with them that matters.

The recent catastrophic failure of the RBS IT system has been widely reported over recent days. Much of the press has used it as an excuse to do a bit of ‘bank bashing’ and have wheeled out bank customers with particularly unfortunate stories; not being able to buy a gravestone for a recently deceased baby was one which I saw on the BBC news - a heart-rending story admittedly.

I am going to be a little controversial! Notwithstanding the original error, RBS has handled the situation effectively. From Stephen Hester down there has been a steady stream of senior managers on TV and in the media giving updates and apologising. Stephen Hester has been tweeting throughout to give updates. From the start they have been open and honest, admitting that this is a huge issue that may take days to resolve. In addition they have also opened branches on Sunday and for extended hours in the weekdays since.

Contrast this with the way BP dealt with the oil spill in the Gulf of Mexico. BP was not open and honest about the extent of the problem and continually reassured us that they had things under control – which it transpired they did not. Tony Hayward handled the press very poorly and was even seen yachting off the Isle of Wight. The local population around the Gulf felt very angry and to be honest they had every right feel aggrieved by BP’s lack of penitence. Tony Hayward left BP in October 2010 and BP was left with a £25bn bill and countless legal actions pending.

I have no doubt that behind the scenes Mr Hester and his team will be putting a huge amount of pressure on their IT department to unravel the current problem and to ensure that sufficient controls are put in place to prevent a recurrence. I would not be surprised to see senior IT managers to leave the organisation over the coming weeks as the investigation gets under way and exact causes are identified.

Ignoring for a moment the hyperbole, RBS have managed their stakeholders very effectively. I don’t know what more they could have done to minimise the impact on their customers. If I have one concern it is that they will have deal swiftly with compensation requests to ensure that there is not further bad publicity.

Phil Dibbs

Managing Director

Hawkmoor Associates Limited

www.hawkmoorassociates.com

phil@hawkmoorassociates.com

www.twitter.com @hawkmoortweets

07866362333

This was posted in Bdaily's Members' News section by Phil Dibbs .