ASX Announcement - People and Culture Changes at the National - 21 April 2004

The National's Chief Executive, Mr John Stewart, has announced two important management changes to accelerate cultural change within the organisation.  The two key changes are:

• Peter McKinnon, formerly Executive General Manager, People & Culture, will take up the role of Executive General Manager, Office of the CEO; and
• Lynne Peacock, currently Executive Director of the National in Europe, now has responsibility for the people and culture functions across the company

Mr Stewart said the changes will elevate the importance of cultural change and governance as part of his revitalisation agenda.  "It is clear that the National needs to become more outward looking, transparent and positive," he said.  "But we also need to get the basics right for our key stakeholders, including staff, customers, regulators, shareholders and the broader community."

"Peter will look at ways in which we can streamline our organisation and better integrate key functions within the National so that we have a more effective approach to dealing with all of our stakeholders.

"Lynne will have responsibility for accelerating cultural change and ensuring that we improve our governance processes.  We will learn from the mistakes of the past and put in place new values and processes to ensure that they are not repeated.

"Lynne is an extremely capable executive with whom I have worked for almost 20 years.  With her wide ranging corporate experience, Lynne will bring a firm business focus and new perspectives to this important role.

"In her new role Lynne will be based in Melbourne but she will stay a Director of the National Australia Group Europe Board and European Wealth Management Board, which means she will continue to contribute to the development of the National's growth and change strategies in the United Kingdom and Ireland.

"These changes are tangible evidence of the ongoing revitalisation of the National, its leadership team and the way we do business.  I am determined to draw on talent wherever it is in the organisation and leverage our capability across the group by selecting the best people for the right job to achieve our business goals."

For further information:

Brandon Phillips
Group Manager
Group Corporate Relations
03 8641 3857 work
0419 369 058 mobile

LYNNE PEACOCK - CAREER HISTORY

2003-2004:  NATIONAL AUSTRALIA BANK
Lynne Peacock joined the company as an Executive Director of National Australia Group Europe in September 2003.  Together with fellow director, Ross Pinney, she has been responsible for driving the company's European change agenda in respect of growth, efficiency and quality.

In April 2004, Lynne was appointed Executive General Manager, People & Culture, for the National Australia Bank Group, based at the company's head office in Melbourne.

1983-2003:  WOOLWICH PLC, PART OF THE BARCLAYS GROUP

2000-2003:  Chief Executive.  Appointed CEO of Woolwich plc on the completion of the company's take-over by the Barclays Group in October 2000.  In addition to responsibility for all Woolwich operations (delivering circa £500m PBT pa), Lynne was responsible for the Barclays/Woolwich integration program, designed to deliver ongoing benefits of £400m pa and for all regulated (wealth management) sales within the Barclays' Group, covering some 1500 registered salespeople across 3 different brands.

1996-2000:  Group Operations Director (one of 4 Executive Directors).  Responsible for all of the Woolwich's UK businesses (which accounted for some 90% of the Group's total profit) and for the achievement of key profit, income and cost objectives.  

Key Achievements included:

• Managing successfully all operational aspects of the Company's conversion from mutual to plc status.
• Major participation (with the CEO and Finance Director) in activities, which culminated in the successful launch of the company onto the market and into the FTSE 100.
• The launch and development of Open Plan, a ground-breaking integrated, multi-channel banking service which attracted over 1m customers, with product holdings more than twice the UK banking sector average.
• Driving through a major cultural change program post-conversion, including the introduction of new performance management systems within the business.
• Significant involvement in the negotiations which resulted in the successful sale of Woolwich to Barclays in October 2000.
• 20%+ growth pa in non interest income.
• Successful disposal of major estate agency operation.

1995-1996:  General Manager Retail Operations.  Responsible for all of the Woolwich front-office activities including the branch network, IFA operations, Surveying operations and Group Marketing.

1994-1995:  General Manager Customer Services.  Responsible for Group Marketing, Financial Services (wealth management), including Compliance and all customer administration (back-office) functions.

1983-1994:  Held a variety of senior marketing roles within the Woolwich, including Head of Marketing, Marketing Manager and Market Development Manager.  In addition to management of the Group's marketing activities, responsible for all marketing input into the launch of key new ventures including an IFA company, a unit trust and life operation and an offshore bank.

Prior to joining the Woolwich, Lynne held marketing roles with Tate and Lyle and Unilever.