*** VIII*** *** WEDNESDAY, APRIL 29, 2009 THE DAILY TELEGRAPHINTERIM MANAGEMENT EXECUTIVE PROFILE|***The Daily TelegraphHOW THE NORTHERN ROCK SAGA UNFOLDED JULY/AUGUST 2007: Banks become reluctant to lend to each other owing to fears over potential losses on high-risk US “sub-prime” mortgages. SEPT 13: News breaks that Northern Rock has sought emergency funding from the Bank of England. SEPT 14: Customers begin a “run” on the bank to empty their accounts. Share price plummets by more than 31 per cent. SEPT 17: Shares slide further and savers continue withdrawing, prompting Chancellor Alistair Darling to pledge that the Government will guarantee all deposits with Northern Rock. SEPT 20: The Bank of England agrees to pump at least £10 billion into longer-term money markets. OCT 1: Government announces it will guarantee 100 per cent of individuals’ bank and building society savings, up to £35,000. OCT 12: Sir Richard Branson’s Virgin Group confirms its interest in a potential rescue bid.Donald Muir, the man who led the rescue after a high-profile crisis, gives Judith Woods an insight into his roleThe Rock revival Donald Muir, a chartered accountant who specialises in turnaround management, gathered together an internal team and set about drawing up a restructuring plan. As a result, the Newcastle-based bank’s prospects brightened to the point where the Government felt confident that taking it under state control was a safe bet. “Put very simply, Northern Rock owed more cash than it possessed and there was a gap in the funding,” says Muir, 49, who lives in London. “Gordon Brown didn’t run blind into the situation, there was lots of analysis. “If he had nationalised it and the bank hadn’t been able to operate as a going concern, it would have been a complete disaster for him. I produced the turnaround plan that gave the Government the confidence to commit to Northern Rock, by coming up with a proposal for a substantial amount of savings to show that it was a viable business.” Now the Treasury is preparing to sell part of the bank back to the private sector. Northern Rock has implemented a programme to increase mortgage lending by up to £14 billion over the next two years; mortgage applications soared by 70 per cent in February and March and the £26.9 billion it owed the Government has been reduced to £9.8 billion. Muir has had an impressive corporate career in Britain and North America that spans telecommunications, power, transport and government. He has transformed two NHS trusts, including Brighton, which won a major award. “Since I started working in industry I’ve been dealing with change management,” he says. “I’ve done lots of jobs where there’s been massive and very rapid change. “The important thing, whatever the sector, is to get control of your cash. Find out what process or product is responsible for burning it up and stop it. I don’t need to be an expert in healthcare or banking — at Northern Rock I had a central team of trustworthy bankers by my side all the way — the basic principles are exactly the same; a pound is a pound in any organisation.” Muir, an affable, charismatic Scotsman, is a straight-talker who admits to being tough when the situation demands it. While it is inevitable that heads will roll when he steps in, his philosophy is to salvage what expertise he can. “I liken my job to walking into a train crash,” says Muir. “I have five minutes to assess who’s still alive and can help me work on the others, to revive and motivate them, and take the company forward. “There are always casualties, but you don’t want to lose people who have years of service and know the business inside out. AtDEC 7: The Olivant group enters the race to secure Northern Rock. DEC 13: Adam Applegarth, Northern Rock’s chief executive, leaves with immediate effect. FEB 4, 2008: Deadline for final bids expires, Olivant withdraws, Northern Rock’s board lodges a “self-help” bid. FEB 17: Darling rejects both bids, saying each would require a “very significant implicit subsidy” from the taxpayer. He announces a “temporary period of public ownership” of Northern Rock. MARCH: Bank announces more than 2,000 jobs to go. MAY: The nationalisation is estimated to have added more than £92 billion to public debt. OCT: BBC research reveals that Northern Rock is more than twice as likely to repossess homes as other lenders. JAN 2009: Government deadline for repaying £26.9bn debt put back to allow Northern Rock to keep borrowers on books..When the Government nationalised former bank and building society Northern Rock in February 2008, there was a general assumption that Chancellor Alistair Darling was obliged to intervene and rescue the ailing institution. But, in truth, he might well have washed his hands of what had been one of Britain’s biggest and most aggressive mortgage lenders, had it not been for the world-class interim manager who was drafted in to prove that the first UK casualty of the American sub-prime crisis wasn’t a lost cause.Northern Rock there were some really good operational people, but there was a need for leadership. If you’re the turnaround guy you need to show people the way forward by focusing on the outcomes, getting them to buy in and motivating them to deliver by instilling the belief that they can do it.” With Northern Rock, Muir’s modus operandi was to create a strong management team internally and to set up a system of detailed financial scrutiny in parallel to the normal accounting process. Every aspect of the business was examined for its efficiency and its fate decided accordingly. “We sat down and looked atareas where there was a higher risk of default. Our aim was to reduce substantially the size of the mortgage book and get the money back, so that money borrowed from the Government could be repaid.” “When I’m brought in, it’s important to give my client something lasting and sustainable and I take pride in that. But I don’t ever do it alone. I am the conductor of the orchestra; I provided direction, but it was the staff of Northern Rock who effected the change.”@JOBS ONLINE: jobs.telegraph.co.uk/ careers-insider
*** ****** ***FOCUS ONThe Daily Telegraph Wednesday, April 29, 2009 jobs.telegraph.co.uk/caInterim managementProduced byTelegraph Create Special ReportsTHE BUSINESS WORLD’S ANSWER TO THE SAS RIDING TO THE RESCUE PAGE 2HAVE YOU GOT WHAT IT TAKES TO BE A SUCCESSFUL IM? THE CHALLENGES: PAGE 3NORTHERN R
*** II*** *** WEDNESDAY, APRIL 29, 2009 THE DAILY TELEGRAPHINTERIM MANAGEMENT OVERVIEW ANDY MARTIN/HEART|***The Daily TelegraphThe trouble shooters Whether you call them company ‘doctors’, change consultants or turnaround specialists, interim managers are in the business of converting loss to profit
*** *** THE DAILY TELEGRAPH WEDNESDAY, APRIL 29, 2009*** ***The Daily TelegraphTHE CHALLENGES INTERIM MANAGEMENT| IIIHave you got what it takes? If you have years of business experience and thrive under pressure, interim work could be for you, says Gabrielle Collett-WhiteThe bank is on the brink, th
*** IV*** *** WEDNESDAY, APRIL 29, 2009 THE DAILY TELEGRAPH|***
*** *** THE DAILY TELEGRAPH WEDNESDAY, APRIL 29, 2009*** ***The Daily TelegraphSUCCESS STORIES INTERIM MANAGEMENT GETTY| VSorting out a right royal mess King George VI unwittingly and reluctantly became an interim manager long before the term became fashionable — and he did an excellent job. Natasha
*** VI*** *** WEDNESDAY, APRIL 29, 2009 THE DAILY TELEGRAPHINTERIM MANAGEMENT WORK PATTERNS|***Women ponder work-life equation More mothers are becoming interim managers. But just how easy do they find it to juggle working lives and family commitments, asks Natasha MannANDY MARTIN/HEARTSATISFACTION
*** *** THE DAILY TELEGRAPH WEDNESDAY, APRIL 29, 2009*** ***CUTTING EDGE INTERIM MANAGEMENT| VIIMore organisations are turning to business ‘doctors’ for a cure. Lisa Sewards reportsThere is seldom such a thing in business as a lost cause... that is the philosophy of seasoned turnaround expert Ian Gr
*** VIII*** *** WEDNESDAY, APRIL 29, 2009 THE DAILY TELEGRAPHINTERIM MANAGEMENT EXECUTIVE PROFILE|***The Daily TelegraphHOW THE NORTHERN ROCK SAGA UNFOLDED JULY/AUGUST 2007: Banks become reluctant to lend to each other owing to fears over potential losses on high-risk US “sub-prime” mortgages. SEPT
