This is worth a read. Key message: keep it simple and focus. Notable highlights for those without access:
1 - McEwan’s 11-year stint as a bank CEO, first at RBS, then at NAB, is essentially the story of stripping two struggling banks back to their core after years of misguided and ultimately unprofitable additions. The simple strategy of getting back to basics for customers and staff (or colleagues, in McEwan-speak) was about learning how to be less Ferrari and more Holden (he drives a Holden ute apparently).
2 - When he arrived at NAB in late 2019, McEwan found a different problem – a bank making good money, but with staff morale crushed by the battering NAB had taken during the Hayne royal commission, which infamously culminated with the departures of chairman Ken Henry and CEO Andrew Thorburn. The challenge this time, McEwan says, was to show staff “the purpose that a bank has so that we could actually get excited about the business we had, and what we do for customers”
3 - There’s nothing fancy here, but delivering consistent growth, without the stuff-ups NAB had become known for (or even the write-downs that have become a regular feature of some rivals’ results) has been rewarded by the market. NAB shares are 26 per cent higher today than on McEwan’s first day in the office.
4 - “I think the biggest challenge going forward is holding on to the great work that’s been done since the royal commission … staying relevant to customers and staying very strongly with the purpose of banking, which is an absolutely honourable purpose of helping customers with their financial needs. “So, I think that’s the biggest one – stay on course and stay on target for looking after customers.”
I should confess I have been sceptical of banks professing to turn the corner. So appreciate any contra indicators in comments. But his underlying message resonates with me and adds to a growing body of anecdotal evidence for me on successful strategy: simple and focused.