In the eighth of a series celebrating firms recognised at the Awards for Achievement, Tom Bradshaw reports on BWCI Medium Business nominee Investec IN LESS than a decade, Investec has grown from operating a loan book of £8m. to £416m. – with only a third more staff.

The management claims a hands-on approach in helping staff to fulfil their potential has been key to the business achieving its ambitious plans.

The bank has had a presence in Guernsey for 30 years, but the Investec connection was introduced only when the group acquired Guinness Mahon in 1998. Included as part of this package was a small bank in Guernsey. It had a balance sheet of £110m. and employed 25. One of nine original staff members still working at the company described the environment back then as being like a hamster on a wheel in that they felt they were not going anywhere.

But once Investec became aware it had an interest in Guernsey, some of the senior directors came over to have a look and spent some time getting to know the staff.

‘This was a new approach and those who attended the introductory presentations describe it as an exciting time,’ said managing director since 2001 Mort Mirghavameddin.

His predecessor, Carol Goodwin, saw the bank through the early years before retiring. She is still very much involved as an executive director. Examples of ongoing community involvement that she initiated are sponsorship of Guernsey hockey and the financial backing and organisation of an annual presentation for the Arts Fund.

Mr Mirghavameddin came to Investec with a long history of working for Guinness Mahon. He understood the challenges of changing the old culture to the new and the necessity of proving to the group that extraordinary things were possible, even for such a small bank.

At that point, the total balance sheet was £300m. and the loan book was £23m. An ambitious target to grow profits before tax by 25% annually was exceeded at 38% for the following four years. By October 2005, the balance sheet totalled £1.4bn – a 13-fold increase since 1998.

‘This amazing rate of growth was only possible through the ideas and enthusiasm generated by the staff. We may be a subsidiary of an international bank, but we develop our own strategy autonomously and can only survive in a competitive environment such as Guernsey if our local staff generate new ideas to maintain our competitive advantage.’

But he said financial performance was just one measure of success and claimed staff contentment, particularly among those who originally started with Guinness Mahon, was high.

Head of legal risk Nigel Riddle said: ‘When I arrived here, I thought I had gone back in time 10 years. The environment seemed so old-fashioned.

‘Now, I’m embarrassed to admit it’s a pleasure to come to work every day.’

IT project manager Joanne Pearce said: ‘I am astounded at the opportunities Investec has given me. Working here has been amazing.’

The bank supports and encourages employees to undertake professional qualification and training courses. All vacancies are advertised internally.

Investec continually upgrades and invests in new products and systems. An example during the last year is Horizon – a US dollar and euro savings account which aims to offer the leading rates in the market.

‘This is aimed mainly at overseas workers and again was a staff idea and the name was also chosen from a staff competition,’ said Mr Mirghavameddin.

One of the high-net-worth team has just developed an idea for a new lending product which will be launched shortly.

‘This is another example of why we are dependent on the enthusiasm and commitment of our staff members.’

Marketing, client events and involvement with the local community have all helped the firm become a highly recognised name in Guernsey during the last two years.

It sponsors a number of island sports, including hockey, golf, junior rugby, squash for schools and under-21 cricket. For more than two-and-a-half years it has been partnered with the Dyslexia Day Centre. For the last six, Investec has operated a charitable committee which coordinates other community donations.

A new initiative has been the establishment of the Green Team to review and reduce the bank’s environmental impact.