After several years of determined effort to reshape attitudes and behaviour, many boards have been left wondering why the culture within their organisation hasn’t really changed.
While they’ve sought to impose a new tone from the top and adjusted compensation policies, how confident are they that their businesses aren’t at risk of more damaging lapses? It’s telling that the proportion of FS industry leaders who believe that lack of trust is a threat to growth has continued to rise. Looking specifically at risk culture, a PwC survey of some 500 banks found that their executives rated their risk culture as C+ on average, when at least A- would have been expected given the investment and effort to date.
In this paper we look at why it’s time for a new take on culture, which would seek to unleash the full force of your culture by aligning it with your overall strategic objectives. Rather than simply responding to regulatory demands and fixing the failings of the past, the priority would be building for the future. We also look at how to make change manageable by honing in on specific behaviours rather than seeking to overhaul your entire culture. The approach could be likened to a short, sharp surgical intervention. Crucially, this approach is also measurable, enabling your business to track progress and demonstrate this to customers, regulators and other key stakeholders. A more far-reaching change in culture will take longer. But adjusting critical behaviours can help your business to set the right direction and build momentum for broader change. We will be following up this paper with a series of practical summaries outlining the tools to use and key areas to focus on, as you look to deliver effective assessment, measurement and intervention.