News

Posts Categorized: Responsibility

Quis custodiet ipsos custodes?

October 16 2018

Some 5 years after the Parliamentary Commission’s withering report on banking culture, it is the House of Commons itself – its MPs, senior management and staff – who face their own brutal and shocking appraisal.  The disgraceful and, in some cases, criminal conduct by some of them and their collective failure to deal, legally or adequately or at all, with bullying and harassment of junior staff, particularly women, by senior staff and MPs is laid bare in this report by retired judge, Dame Laura Cox.

It would perhaps not have been politic of those bankers – quizzed by the Parliamentary Commission about their failure to raise concerns about the misbehaviour of fellow traders and bankers – to have pointed out to their inquisitors that the number of MPs who blew the whistle on fellow MPs who broke the expenses rules and, in some cases, committed fraud was the grand total of zero.  (It would though have been hugely enjoyable for fans of sanctimonious humbug.) Those in the financial sector who had to take the MPs’ justified criticisms can perhaps now enjoy a touch of schadenfreude when they read Cox describe the “omertà that many MPs practice in respect of bad conduct by one of their number” and that “Members turn a blind eye to dishonourable behaviour by others”. 

But the report goes further.   Despite the 1995 Nolan Committee report  on Standards in Public Life making it clear that MPs had to display the highest standards and that “it is essential for public confidence that they they should be seen to do so”, it seems – and who could possibly have foreseen this? – that self-regulation doesn’t work.   The Cox report describes an entrenched culture “cascading from the top down, of deference, subservience, acquiescence and silence, in which bullying and sexual harassment have been able to thrive and have long been tolerated and concealed.”  Processes and policies, no matter what fluffy names they are given (Cox is particularly critical of the “Valuing Others” policy) are described as not fit for purpose and not even compliant with existing laws on harassment and discrimination, let alone best practice.  Investigations are inadequate and carried out by amateurs.  Confidentiality is not respected, staff are fearful and unsupported and retaliation – or threats of it – are common.

The report makes for grim reading.  Even grimmer in the two days since its publication has been the defensive reaction of MPs and senior staff at the Commons at the very idea of having to take action beyond the token.  The House of Commons may consider itself a special case though, as Cox acidly points out, while “Members of Parliament are elected representatives…their mandate does not entitle them to bully or harass those who are employed….to support and assist them.”

But this report has much from which every employer, from senior managers down, and not just HR Departments, can learn.  In an era of #MeToo, of younger generations being unwilling (rightly) to put up with boorish (at best) and criminal (at worst) behaviour in the workplace, when an unhappy employee can create unwelcome publicity and force companies to take action, all organisations can learn from the failures so forensically dissected in this report.   It is not just Parliament which is a stressful workplace.  All workplaces are likely to face these problems to a greater or lesser extent and it is no easy task trying to handle matters which can range from someone being insensitive and impolite, via bullying, leering, insulting remarks all the way to actions which may amount to serious crimes.

Three points in particular are worth highlighting:

  • A “devotion to process and language rather than to real effectiveness” is a waste of time.  Procedures and rules are necessary but never sufficient.  They are merely proof of the importance with which the issue is viewed.  But the real test of whether you have the right policies in place is whether your employees trust you to investigate properly and act on findings, no matter who is involved.  Without that trust even the best written procedures are mere will 0′ the wisps.
  • Those at the top have to lead by example.  In yesterday’s radio interview  Dame Laura posited three questions which those at the top should ask themselves when having to manage cultural change:
    • “Do I understand that radical change is needed?”
    • “Can I deliver that change?
    • “Will staff have confidence that I can deliver that change?”  Answering that third question honestly requires a level of self-knowledge and courage that is not as common as it should be.
  • Codes of Conduct are a fancy way of reminding people that good manners, politeness and civility matter.  At their heart, good manners are about being kind to others (and kindness is a much underrated virtue).   Employees, managers, colleagues, the temporary and contracting staff who do the myriad tasks which keep a workplace going, however senior or junior, are human beings, not simply resources.  Politeness and thoughtfulness to those around us cost nothing, can help mitigate even the most stressful of jobs and are the bare minimum which should be expected of – and for – all staff.

And, finally, not for the first – and certainly not for the last – time, if a problem happens, don’t ignore it.  “This cycle of repeatedly reacting to crises only after they have developed into crises, and sometimes only after unwelcome publicity, is a perilous approach to adopt for any organisation, but it is completely hopeless for a place of work.”

As for the House of Commons, if it really is serious about changing its culture, it needs to realise – as others have – that this is the work of years, not weeks or months, and is a task which is never finished.

 

Photo by Gabriel Matula on Unsplash

Taking Responsibility

August 1 2018

Last month the FCA published its near final rules on the Senior Manager and Certification Regime, a hefty 420 pages (and that’s not counting the consultation papers, responses and rules for insurers and solo regulated firms and so forth).  So many words to deal with what was succinctly described in this paragraph of the Report of the Parliamentary Commission on Banking Standards:

“One of the most dismal features of the banking industry to emerge from our evidence was the striking limitation on the sense of personal responsibility and accountability of the leaders within the industry for the widespread failings and abuses over which they presided. Ignorance was offered as the main excuse. It was not always accidental. Those who should have been exercising supervisory or leadership roles benefited from an accountability firewall between themselves and individual misconduct, and demonstrated poor, perhaps deliberately poor, understanding of the front line. Senior executives were aware that they would not be punished for what they could not see and promptly donned the blindfolds. Where they could not claim ignorance, they fell back on the claim that everyone was party to a decision, so that no individual could be held squarely to blame—the Murder on the Orient Express defence. It is imperative that in future senior executives in banks have an incentive to know what is happening on their watch—not an incentive to remain ignorant in case the regulator comes calling.”

But what does taking responsibility really mean?

A few days after the FCA’s publication, the death was announced of someone who, in his life, gave three striking examples of this: Lord Carrington, Foreign Secretary 1979-1982, subsequently Nato Secretary-General and the last politician to have served in Churchill’s post-war Cabinet.  Much of the commentary on him focused on his resignation following the Argentinian invasion of the Falklands in 1982.  Though absolved of personal blame by the Franks Report, he explained his decision to resign thus: “It did not seem to me a time for self-justification and certainly not to cling to office.  I think the country is more important than oneself.”  In his autobiography he wrote: “The nation feels that there has been a disgrace. Someone must have been to blame. The disgrace must be purged. The person to purge it should be the minister in charge. That was me.”  

Those 7 sentences admirably summarise what it means to be in charge and to take responsibility when something goes wrong on your watch.

(It would not be far-fetched to say that the nation might well feel that aspects of banking have in recent years been “a disgrace” which ought to be purged.)

It was not the first time Carrington had offered his resignation.  As a very junior minister at the time of the Crichel Down affair in 1954 (a landmark case on the rights of individuals vs the interests of the state and the standards to be expected of Ministers) he had offered his resignation though it had been refused.  It was the senior Minister in charge who resigned following findings of severe maladministration in his department, the first such Ministerial resignation since 1917.

Most surprisingly of all, despite being awarded the Military Cross in 1945, Carrington never mentioned it in his autobiography, stating that he only got it because of the good men he had under him and that it was “all such a rough raffle. Pot luck – nothing to do with me.”  Well, hardly.

Still, that is what marks out leaders: recognising that being senior means taking responsibility even when you are not to blame and having the humility to know that your own achievements rest on the hard work of others (and a fair amount of luck) at least as much as on your own efforts.

What might we learn from this?

  • Well, however wonderful the rules, having people around to set a good example and be good role models is even better.
  • Role models can be found in the most unexpected of persons.
  • And, finally, the aim of all good and long-lasting training is to ensure that concepts such as responsibility and leadership become an instinctive and genuine part of a person’s every day conduct and behaviour and not simply something to trot out in specified circumstances.