Handelsbanken.. Bigger Export than Abba?

While the British have enthusiastically thrown themselves around the dance floor and sung along to Abba tunes through good times and bad for over 30 years, we now have leading Swedish bank, Handelsbanken, holding hands with British businesses and nurturing its clients through the worst economic downturn in living memory. We assess what can be learned from its approach.

Business Secretary, Vince Cable, has been at the forefront of politicians calling for a change in the way banks operate, branding them as a ‘structurally flawed industry’ failing in their support to private enterprises. Some banks, however, beg to differ. Namely, Anders Bouvin who is the Chief Execuitive Officer of Handelsbanken. Bouvin is proud to announce that since the collapse of Lehman Brothers in September 2008, Handelsbanken has “made £6bn worth of new loans, doubled its number of branches, and welcomed thousands of new customers.”

Of course, it’s important to put this into context. In the grand scheme of things, banks such as Barclays, NatWest and HSBC still offer the lion’s share of credit to consumers and businesses in the UK. But Mr Cable’s point about structure is an important one, both in terms of why credit is still tight for UK businesses and a reason why Handelsbanken is increasingly seen as a rising star in the sector.

Firstly, the common bank lending model is roughly based on a top down macro approach, whereby banks loosen and tighten credit depending on the economic outlook. So in the good times they lend more and in the bad times less. Unfortunately, such a model produces an uneven lending policy - hence why credit has been tight for the past couple of years. In addition, by focusing on economics rather than the customer, bad loan decisions are still being made.

By contrast, Handelsbanken’s starting point is first and foremost in sound credit analysis of the customer. Its lending policy remains the same whatever the economic backdrop. The result has been a constant supply of loans to credit-worthy individuals and companies in the UK for the past 25 years.

Handelsbanken has been banking in the UK for the past 25 years, but it was really in 2002 that the Bank decided to expand its operations to such an extent that they now call the UK their “fifth home market”. This summer the Bank has committed to establishing 102 branches spread across England - and these are not just clustered around the capital - there’s as many branches supporting businesses in the north of England as in the south.

Vital Statistics

1871 opened first branch in Sweden

29 years presence in the UK (since 1982)

102 branches in the UK

800 plus employees in the UK

723 branches worldwide in 22 countries

11,000 (approx) employees worldwide

8% increase in total operating profits in 2010 (SEK14.8bn)

12.9% return on equity for total operations in 2010

Having successfully established and maintained its own banking model throughout the Nordic countries, Bouvin had no difficulty explaining to me the reasons why his bank is both profitable and popular. “We seek to build long-term sustainable business and build long-term customer relationships. Since we are a relationship bank and not a transactional bank, ‘know your customer’ comes very naturally to us. It’s something that is an important part of the way we conduct our business.”

Bouvin explains that key to this relationship is the absolute trust Handelsbanken has in its branch managers. These are the people who are charged with identifying new clients. It is the local branch manager who researches each client’s aims, objectives, and aspirations, works out a financial programme that truly supports what the business needs - offering more than the kind of off-the shelf products other banks would want to sell - and then stays with that client through thick and thin. And, it is the branch manager who ultimately decides on the levels of support that Handelsbanken provides. Decisions are not handed down the ladder from some remote head office. There are no instructions from on high telling branch managers what they can or cannot do for their clients. “They are totally self-sufficient and autonomous. This is all to do with our fundamental belief that in order to provide long term customer satisfaction you should be as close as possible to your customers.”

All of the managers running Handelsbanken branches are, themselves, home-grown in that they are local to the area in which their branch is situated. Bouvin describes them as “refugees from the High Street who feel that where they’ve been they were not trusted, they were microA local Handelsbanken branch in Chiswick managed, and used to spend a good part of their time doing things that had no value whatsoever for their customers. These are people who have the same ethos as Handelsbanken, caring for customers and wanting to build relationships, and they’ve come to us saying I’d love to open a Handelsbanken branch in Town Y; and that’s when we start discussions.”

In order to concentrate on the customer, branch managers at Handelsbanken do not have sales targets and no budgets to contend with. Nor is there a bonus structure, with everyone on a flat salary. And in case you are wondering – no, Mr Bouvin does not get a bonus.

Indeed, when I announced to my colleagues that I was about to interview a CEO of a bank who doesn't receive a bonus, I detected more than a whiff of disbelief in the room. Yet after shaking the hand of this unique CEO and taking my leave of Handelsbanken, I couldn’t help but reflect on the singularity of a banking presence in this country that has never been begged to exercise restraint over its executives’ financial remuneration, been implored to unfreeze credit lines to its customers, urged to unlock the wealth banked from quantitative easing, nor needed prompting to build up its reserves.

And by sticking to its own sound business model, it continues to expand its branches, employ more local staff and thereby encourage the business prospects of this country. Indeed as that other Swedish export, Abba, once sang: ‘If you need me, let me know and I’ll be around - take a chance on me”, it appears the British will be taking a chance on Handelsbanken for years to come.

Have a look at the Handelsbankens branches we have designed at our portfolio page here 

The Perfect Task Lamp Lets You Mold Its Light to Your Liking

Even jointed lamps that pivot at all angles can be hard to direct, when you need the light to be just so. A lamp whose entire body is the light itself—and bendy, no less is exactly the kind of thing to read or work by using a light that won't hurt your eyes.

The Motion Lamp, by designer Gergő Kassai, is a low-energy and lightweight OLED lamp that is fully customizable—its light source embedded in flexible, free-form silicone with internal wires allowing the lamp to contort into all manner of positions.

OLED lighting technology prevents the lamp from casting multiple shadows, ensuring a visually soothing lighting temperature. No headaches or tired eyes! A perfect task lamp!

Our Latest Project - BAA Aviation

BBA Aviation provides specialist on-airport support services to the owners and operators of business and commercial aircraft. They are an international successful business that continues to grow & develop which is why they are investing in more efficient office space throughout the UK.

Hi Design has been chosen to help develop a number of their buildings including the new flagship head office located on Wigmore Street London. BBA Aviation needed a head office that was professional & sophisticated but that above all increased productivity. Along with the high specification finishes they needed an office that offered all the technology and flexibility that is essential in today’s modern work place.

When designing the head office we split the space into 3 sections, the reception, front of house and back of house. The reception needed to create a welcoming and grand entrance for clients, a place to relax and become familiar with the brand. We designed it to have the wow factor but be subtle in its deliverance, keeping colours to a minimum using only monochromes, greys and creams. Simple, clean reflective surfaces are contrasted with rich woods and soft furnishings. We custom designed the bespoke reception desk to mimic a section of an aeroplanes wing which accompanied the aviation theme throughout the workplace.

Meeting rooms continued the professional appearance with dark oak wood and leather executive meeting chairs. It is in the meeting room however that the technology comes alive with large plasma screens, video conferencing and remote controlled changeable glass manifestation. Using foldable walls and a collapsible boardroom table the main meeting room that can seat 20 people can also be split into 3 separate meeting rooms.

Back of house was kept simple with white desks and storage units which we gave character by using large black & white graphic walls depicting large sections of private jets that were highlighted with the brands corporate blue.

For the brake out we wanted to create a space where staff could relax and get away from the office environment so we created a woodland theme in the middle of London. Deep greens and fawn furnishings were placed against a woodland backdrop so staff would feel tranquil and refreshed after their brake.

We are really thrilled with the finish project and are proud to have it in our portfolio. Sheena Mackay Group, HR Director of BBA comments: “Not only do we have fabulous new offices but your hard work, commitment and enthusiasm really paid off. The move went extremely smoothly and I haven’t heard anything other than positives from everyone regarding their new office and environment.”

For more photographs please click here

Mercedes designs furniture range

Mercedes Benz is extending its brand into the lifestyle sector by creating a furniture range inspired by its cars.

The range, which includes a sofa and table, combines Mercedes’ technology and luxury credentials with designs inspired by its cars.

The first collection has been developed in partnership with Formitalia Luxury Group, which also sells furniture under the Lamborghini and Aston Martin automotive brands.

The range has been created by the Mercedes Benz Style division, which was launched in 2010 to extend the car marque’s design skills into other areas. It has already developed designs for yacht and helicopter interiors.

Mercedes aims to apply its design principles to a number of lifestyle and industry product categories in coming years.

It will launch the range at the 2012 Milan Furniture Fair in April.

Google Does it Again!

Google’s beach-hut-filled London office charmed the design community and beyond with its playfulness and primary-coloured kook when it opened for business in 2010 (onoffice 50). But despite the success of the Scott Brownrigg-designed space, the firm opted for a different approach for Google Engineering’s headquarters on London’s Buckingham Palace Road, commissioning architects Penson to drop the kindergarten palette and develop something a little more grown up.

“A lot of people have distinct ideas about what the Google ‘look’ is but they’re trying slowly to change the way they’re doing things with design,” explains Penson lead designer Anna Pizzey. “Before, Google leaned towards the very whimsical, very fun, and it played on those primary colours of the logo, but when they came to us they said they wanted to move away from all of that.”

Given just three days to come up with initial ideas just before Christmas 2010, Penson decided to engage with the geek-chic aesthetic of the internet behemoth’s software engineers, developing a more mature space – but one that is anything but dull. Entering Google Engineering’s HQ feels akin to strolling into NASA. Futuristic workstation bays sit next to informal “flight pod” meeting rooms, which, with their bespoke tiered sofas and slouchy bean bags, somewhat resemble astronauts’ rec rooms.

Penson’s floorplan tackled the awkward symmetry of the fourth-floor space and attempted to remove potentially disturbing foot traffic away from the central desk area by congregating meeting rooms around two wings. “The flight pods act as the visual and acoustic barrier between the circulation areas and the desking areas,” explains Pizzey. “They are completely open and not bookable. The idea is that people have to negotiate among themselves when and why they need them.”

The thinking behind this decision was to combat the often solitary and quiet programming landscape and encourage more communication and integration among the engineers. This idea of open, informal communication has been mirrored by the design of the pods, both in their docked corners to integrate them into the wider workspace, and in the choice of curtains rather than doors, alongside whiteboard walls and intimate lighting.

The task of naming the pods fell to the engineers themselves, who opted to honour iconic programming languages such as Cobol, Haskell and Basic. Penson wanted these rooms to be highly customisable, and sure enough, after a few months of use, foosball tables, rugs, plants and cushions sit beside the video conferencing technology and Kvadrat PVC-finish walls. “The idea was that we gave them a framework that they can add to, rather than telling them how to use the space,” says Pizzey.

There are two bookable meeting rooms at the entrance to the floor, with more formal retro white vinyl chairs rather than sofas, and geometrically etched glass walls. “A lot of people say this area looks like a spaceship, but the inspiration came a lot from looking at geometric forms and origami,” says Pizzey. “The tiles are based on a computer software sequence that uses these triangles, and we’ve developed the theme throughout the floor.”

A black carpet reduces noise around the well-trodden path to the flight pods and meeting rooms, but Bolon is used elsewhere, giving the floor a perceptible space-age sparkle. Pizzey explains: “We felt that with the super-slick finishes on this level, with the angles and geometry, and the architectural way it’s cut and carved, that using carpet throughout would be the wrong finish.”

Environmental graphics were important for maintaining the space-station atmosphere of the floor, whether it be the playful numbering of the workstation bays or the reoccurring L4 (for level four) motif, which has been fashioned out of punched powder-coated steel and back-lit. Around the edges of the leafy atrium – the only existing element from the floor’s previous incarnation – the black PVC has been embossed with intersecting lines and emblazoned with pixel-like silver buttons spelling Google. “It’s our take on a hedgerow,” smiles Pizzey.

The pixel motif appears again in the headquarter’s “circulation nodes” – dramatic dark blue corridors that connect intersections in the four corners of the building. These harbour backlit signage punched into the joinery panels, which alongside floor and ceiling LED strips, guide employees onwards.

The four video conferencing rooms also feature dramatic strip lighting, alongside white Panton chairs by Vitra; a bespoke table system suspended from the ceiling seems to nod to the bridge of Star Trek’s Enterprise. Pizzey explains: “We just wanted the video conferencing to feel really different. The whole purpose of these rooms is to talk to someone, so we wanted to reorientate the room to really focus on the experience.”

But this would not be a Google office if the entire floor was dedicated to work. The left wing of the building features a lushly decorated cinema, which can be used both for conferences by day and film screenings out of hours. Penson created a fun cinema foyer, with wall graphics featuring popcorn and moveable lettering mimicking the grid system of old movie listings.

Penson also created not the average canteen, but a futuristic “coffee lab” featuring all the latest java-related products for the engineers to get their caffeine fix. Pizzey says: “This office basically comes online at about six in the evening because America is online; there are people here almost 24-7. So for these guys, coffee is almost like gold.”

Here Penson translated the triangular coding motif into floor tiling, and combined it with geometric industrial lighting by Zumtobel to prevent the futuristic aesthetic being lost to a barrista-chic vibe. But even in this room, trademark Google geekery and passion for the unexpected prevails. The imposing-looking large black table, which was made bespoke for the room, features a top surface made from compressed recycled coffee grains. Pizzey adds: “This was a really nice project for researching new materials – materials that you wouldn’t necessarily associate with an office space.”