Birmingham manager Alex McLeish signed a new three-year contract - then saw his side overwhelmed by West Brom who came from behind to win 3-1 in a pulsating derby clash at The Hawthorns.
Blues controlled the first half and deservedly led at the interval through Cameron Jerome's first goal of the campaign.
But the Baggies were transformed after the break with Peter Odemwingie, Jonas Olsson and an own goal from Scott Dann dooming City to their first defeat of the season.
Odemwingie caused all sort of problems when pushed into attack by Albion boss Roberto Di Matteo for the second half in place of Marc-Antoine Fortune, while Jerome Thomas tormented the Blues defence throughout the 90 minutes with his trickery and powerful runs and testing crosses.
Alexander Hleb made a promising debut for City on loan from Barcelona but, like his team-mates, had to play second fiddle to the home side during the second period.