The area manager in Newcastle upon Tyne called the British Rail chief executive’s desk urgently to report that a Scotsman with one arm was wandering the main signal box, claiming to represent BR and asking how things worked. Was it okay to let him know?
Bob Reid was the man who recently moved to ShellHe was about to embark on a five-year difficult stint as the UK Chairman of BR, which would culminate in a privatisation that he had grave concerns over. The man was typified by his forays into the signal box and the drivers’ bathroom at Waterloo. He was impulsive, impatient and determined to move things along. He also had a soft manner, regardless his rank.
The offer was made in 1990. Reid, who died at age 91, wasn’t the first choice. Rumours said that 20 other people had turned down the offer. He saw the opportunity to use his skills in a public sector organisation with a long-standing concern for government, and that faced significant challenges due to the upcoming Channel Tunnel rail link. Reid couldn’t wait to get going, but he shocked some of his new co-workers with a bullying joke saying that he is used to larger projects than the ones he would face at BR.
He took over at a time when the railways were improving. However, the government’s subsidy level was still controversial. His predecessor was a railway veteran who was also confusedly called Sir Robert ReidA benign economic environment had allowed for steady improvement. Business had been reorganized into sectors which was a great success. However, the recession in the early 1990s hit railway finances, and Bob Reid did not get government support for BR’s planned investments.
John Welsby became his chief executive and he concentrated on government-priority projects like the Channel tunnel. BR preferred a route in south London, which would offer alternative options and connect to new expensive facilities. Michael Heseltine was promoting regeneration in the Docklands and the government chose to go with an east London option. Reid was hurt by the rejection and many thought he would resign. However, he said in an outburst he regretted immediately: “When in the middle a pantomime you want to stick with it.”
When BR famously attributed delays to “leaves on a line” or “the wrong type of snow”, as well as his failure to achieve his investment plan, it began to raise questions about his competency in dealing with the government. The transport minister, Malcolm Rifkind described him as “on a curve”.
Reid’s unwillingness to learn in depth was a source of frustration for railway managers, who were afraid of being given a diktat. However, they admired his focus on safety. He insisted that all track maintenance supervisors brief their crews each morning about safety.
Reid’s troubles multiplied as John Major’s new government decided on privatising the railways. Reid was critical of this scenario, which he had not included in his original brief. He correctly predicted that the division of the systems would increase bureaucracy. Profits would not have been reinvested sufficiently, and safety could be compromised. Some hoped he might challenge the plan and resign. He argued, however, that “managing big undertakings via the government is a recipe of all kinds of problems.” Even though I might have done it in a different way, the important thing was to get BR into private sector.
By 1995, at the end of his term, Reid could point to better financial performance (with expectations of a £400m-a-year profit for BR), an improvement in industrial relations that had seen just two days lost to strikes over his whole period in office, and improved productivity. But he lost the strategic wars.
He was the son of Elizabeth Paul and William Reid. Born in Cupar, Fife. His life was forever changed by an accident at age nine. He lost his right arm while working in his father’s meat shop. He called the incident “catastrophic”, but said it only heightened his desire to get involved. In a week, he learned to write using his left hand and became an accomplished golfer. He would later say that “making things happen is an attitude.” “The joy in leadership is as much about overcoming failures as it is about enjoying success.”
Reid’s leadership skills were demonstrated during his career at Shell, which he began in 1956 after studying history, politics and economics at St Andrews. He represented the university at golf and met his future wife, Joan Oram, there – they married in 1958. He made important friendships with aspiring politicians. Bob HortonJohn MacGregor was appointed Transport Secretary while Reid was still running BR.
Shell’s career in Nigeria took him to Malaysia and Nigeria before returning to Nigeria from 1970 to 1974 as Managing Director. From there, he moved to Thailand as a director of downstream petroleum and to Australia as a director. In 1983, he was sent back to London for a new position as coordinator of supply and marketing. He then became chairman and CEO of Shell UK.
Reid was nicknamed the “one-armed bandit” for his energy and vigor, but never made it up to Shell’s board of directors (also known as the committee of managing Directors). He was given a largely representational role in which his people skills were put to use, even though he had responsibility for UK refinery and North Sea operations. It was decided that his experience of camping outside the Nigerian minister’s offices when they refused him access helped him in his role with the UK government.
Reid’s tenure as chairman consolidated his reputation of energy, unpretentiousness and charisma. In the absence of business schools, he fought for the proper training of managers. He established the Foundation for Management Education. Shell’s sponsorship took a new turn with Reid’s support of Bafta. His sympathy for the arts was evident (especially music and opera), and his keen eye for PR. Reid, at a time Shell’s continued activity in South Africa came under fire, argued the company could play a role in change and offered liberally managed jobs that helped to put it in a new light.
He was knighted by the Queen in 1990. After leaving BR he went on to become chairman of Sears Holdings. He was later appointed deputy governor of Bank of Scotland. He was the first Chancellor of Robert Gordon University, Aberdeen. London Electricity was another chairmanship, along with Avis Europa and the International Petroleum Exchange.
Joan died in 2017. Reid is survived his sons Douglas, Patrick, and Michael.
