BARCLAYS BANK: HOW (NOT) TO COMMUNICATE WITH STAKEHOLDERS

In 2003, Barclays, a UK-based bank and financial services group,appointed a new advertising agency, Bartle Bogle Hegarty (BBH). BBHwas hired to spearhead a 'more humane' cam­paign, after the bankwas lambasted for its 'Big Bank' adverts in 2000 that featured theslogan 'a big world needs a big bank'. Barclays had spent £15million on its 'Big' campaign, which featured celebrities such asSir Anthony Hopkins and Tim Roth. The adverts were slick and hadreceived good pre-publicity, but they turned into a communicationdisaster when they coincided with the news that Barclays wasclosing about 170 branches in the UK, many in rural areas. One ofthe earlier adverts featured Welsh-born Sir Anthony Hopkins talkingfrom the comfort of a palatial home about the importance of chasing'big' ideas and ambitions. The adverts provoked a national debatein the UK when a junior government minister, Chris Mullin, saidthat Barclays' customers should revolt and 'vote with their feet'.Barclays' image crisis worsened when communication executivesannounced that the new Chief Executive, Matthew Barrett, had beenpaid £1.3 million for just three months' work. At the time,competitors - including NatWest - quickly capitalized on thefall-out from the Big Bank campaign and were running adverts whichtrumpeted the fact that it had abolished branch closures.

Local communities that had lost their branch were particularlyangry at the closures. The situation was further aggravated by thearrogance with which Barclays announced and justified the decision.Matthew Barrett had explained the branch closures by saying, 'Weare an economic enterprise, not a government agency, and thereforehave obligations to conduct our business in a way that provides adecent return to the owners of the business. We will continue totake value-maximizing decisions without sentimentality or excuses.'Barclays was openly admitting that its main focus was onshareholder returns and larger customers across its investment andretail businesses. Perhaps the most amusing story of the many thatemerged during that period was of the fact that the village whereAnthony Hopkins was born was one of the victims of the branchclosures. He was seen as a traitor to his heritage, and the localWelsh Assembly Member wrote to him as part of her campaign aboutthe closures. Hopkins was moved to write back to her, complainingabout being used as a scapegoat when in fact he was just an actorand felt that he needed to set the record straight by pointing outthat he did not run Barclays Bank. In an attempt to respond to theimage crisis, Barclays extended opening hours at 84 per cent of itsbranches and recruited an extra 2,000 staff to service the extrahours. However, the damage to its reputation with some of itspreviously most loyal customers had already been done.

QUESTION

1. In your point of view, what broader lessons does the case implyfor corporate communication? (10m)