Why David Cameron is the ultimate "seagull" manager

He flies in, makes a lot of noise, dumps on everyone from a great height, and then flies out again.

Back when I worked for a large organisation, we had a term: “seagull manager”. It described someone, usually a consultant, who flew in, made a lot of noise, dumped on everyone from a great height, then flew out again, leaving others to deal with the consequences.

Parachuted into action more than two years ago, Cameron squawked hysterically about difficult decisions, the mess he inherited, a new kind of politics and the big society (whatever happened to that?). Since then, he has proceeded to spend the majority of his term, so far, defending arrested pals, disgraced ministers, fiascos, scandals and u-turns.

This week sees another spate of threatened strikes and underlying unrest. To the growing list of greedy doctors taking industrial action for the first time in four decades, unyielding police officers demonstrating outside Parliament, uncivic protesters occupying shops and banks, dishevelled students disturbing the peace and politically motivated nurses and teachers picketing No 10, we can now add unreasonable dairy farmers and unpatriotic border control officers. At what point in this nexus of insubordination, do we begin to consider that the fault may lie with the country’s leadership?

Apologists have posited that Cameron is powerless, caught in the middle of a battle on two fronts; with his torysvestite coalition partners and his own backbenchers. The truth is those are mere political skirmishes. The real battle, the one which threatens to be his Waterloo, is entirely self-inflicted. It is a battle with the country’s public servants.

When a young David William Donald Cameron, son of a stockbroker, grandson of a Baronet and direct descendent of King William IV, was caught smoking pot at Eton College, his punishment was to copy 500 lines of Latin text. I wonder if they included Cicero’s “Ut sementem feceris, ita mete” - whatever you sow, you shall reap.

Last year, he announced that he was “taking on the enemies of enterprise; the bureaucrats in government departments…” Every nurse, every civil servant, every immigration officer, every policeman heard that declaration of hostility. In the midst of the severest programme of cuts, an economic downturn unseen since the Depression and a radical reorganisation of just about everything, he declared war on the very people on whom he depended for delivery.

You may have opinions on the individual policies, cuts, measures; on the rights and wrongs of each dispute. What is indisputably cack-handed, however, is alienating the entire administrative arm of the state at a time when you depend on their effort and good will to deliver your programme; at a time when you require their stiff-upper-lipped acquiescence to having their pensions and salaries looted. The most basic experience of management would teach one that the key ingredient, in securing the success of an organisation, is the staff’s support.

So, is it any wonder those unionised chickens are coming home to roost and choosing a time when they can cause him maximum embarrassment? The government’s reaction is an overwhelming sense of embarrassment that visitors to these shores might be confronted with dairy farmer boycotts, airport queues, terrible traffic, strikes, riots, homelessness and economic misery -  in short, the reality of what most of us experience every day. Instead of seeking resolution, they say “not in front of the neighbours”. Throw a doily over child poverty. Pop some flowers on top of the half-dismantled NHS. A few cushions scattered around unemployment. Make the place look nice.

They even went as far as to announce they were seeking a High Court injunction to prevent border staff from taking action, before the strike was called off at the eleventh hour. A course of action guaranteed to polarise rather than facilitate. Mark Serwotka specifically commented on “the vitriol and vilification” to which PCS members had been subjected by ministers. More evidence of poor management – engaging with staff only when a disagreement has snowballed into a vendetta and, even then, aggressively and destructively.

Cameron never misses an opportunity to mock Ed Miliband’s friendly relations with Trade Unions. But shouldn’t any PM or would-be PM aspire towards friendly relations with Unions? They represent ten million working people in the UK, not even counting their families. The belief that having a pathologically unhealthy relationship with such a large and productive part of UK society, is evidence of strong leadership is not only illogical, but dangerous in the extreme. In what other line of business would you see a CEO boasting that he has a dreadful relationship with his staff?

That indefensible approach has been characteristic of this administration – not only in its industrial relations, but across the spectrum. Unmeasured words keep falling out of this fuchsia, angry man’s mouth.

Attacking immigrants may give him a boost with one part of the demographic. Attacking pensioners may curry favour with another. But what is the long-term strategy? Eventually all those groups start to merge into one angry, explosive mass. The unemployed, the working, the disabled, the impoverished, students, charities, parents with too many children, parents with too few, those with cars, those with caravans, the small business who can’t borrow, the small business who sells pasties, the cleaner paid in cash – it all adds up to an entire country seething with anger.

The difference between good opposition and good government is that the former is judged primarily on the quality of the talking, while the latter on the quality of the doing. But there are no comforting results to which one can point. This week, the IMF predicted that, far from reducing national debt as a ratio to GDP, it will continue to rise and peak by 2015/16. In 2010 it was less than £1 trillion. By 2015 it will be more than £1.5 trillion.

An Austerity Programme is like an episode of The Biggest Loser. Inspirational rhetoric and sweaty montages cannot save the contestants when they step onto the scales. There is a pre-agreed goal – in stones and pounds, or pounds and pennies. And lately what has become painfully clear is that, despite starving the country, the coalition will fail to meet its key self-imposed targets. It seems that the economy stubbornly refuses to be orated up and the debt just won’t be sound-bitten down. Words are not enough.

There is a limit to the credibility with which one can say “I’m not being nasty. Times are nasty.” The evidence disproves the flannel: Privatising public assets, mass outsourcing, protecting The City, lowering taxes for the wealthy and corporations, handing out contracts to friendly donors, cutting services to the bone – when has a Tory government ever done any different, in good times or bad?

There is a limit to the rhetoric of “difficult decisions”. Difficult decisions are made harder to deliver and less likely to succeed when they are meted out in an arrogant, mean-spirited, ill-tempered manner. The progressive voter understands this and will condemn Cameron for his character. The conservative voter understands this and will condemn Cameron for his failure to deliver.

Flashy but incompetent, clueless but obdurate – Cameron is the ultimate seagull manager. Whether judged on attitude or aptitude, he is truly, hopelessly bad at his job.

 

David Cameron: scary seagull. Artwork: Dan Murrell/New Statesman

Greek-born, Alex Andreou has a background in law and economics. He runs the Sturdy Beggars Theatre Company and blogs here You can find him on twitter @sturdyalex

Getty
Show Hide image

Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation