Salz Review - Wall Street Journal

Salz Review
An Independent Review of Barclays’ Business Practices
194
reprisal, shame, guilt, and fear of personal harm are vital feelings that help us to assess risk
and, where necessary, prevent us taking risks and committing immoral acts. Emotional
escalation is our brain’s way of signalling the perceived intensity of risk. In an absence of
acknowledging these emotional states, we are in a semi-delusional state of mind in which,
rather than admit responsibility, or learn from our mistakes, we create rational logical
arguments which explain our actions. Rationalised wishful thinking allows us to detach
ourselves from the reality. Cultures which emphasise constant pleasure seeking without the
balance of reality dampen our emotional antennae and increase the propensity for risk
taking.
While we would prefer not to think it is the case, we all need to contain our propensity
to be corrupted (in groups). In group life, corruption can readily, and often somewhat
unconsciously, be systematised. However, if we acknowledge this, then we will be more
readily able to identify it and contain it. When culture is corrupted there will be a
misalignment between what we have learnt to expect and that which we experience.
But to do anything about it, we first have to notice this at a fundamental level.
A culture which encourages exploration of ethical and moral dilemmas has a healthy
respect for emotional expression. And a culture which encourages open challenge to
decisions that contradict the values of the organisation is a healthy culture. Cultures in
which corruption ensues typically are those in which we find denial or suppression of
values, as well as ethical dilemmas.
In Conclusion
On the whole, when you work through the abundant literature on the crisis, it seems that
bankers, regulators, shareholders and politicians now have a better grasp on the
behavioural and cultural issues that they were once ignorant of, and blind to – and which
contributed to the financial crisis. Now the work begins, with unlearning of old beliefs and
behaviours and learning of new. This will be a journey that will take some time.
Leadership and decision making: Culture begins with the personal. Leaders must have a
sense of purpose which goes beyond themselves and their own personal contribution.
Personal integrity is universally recognised as an attribute required for effective leadership.
It is a life long journey 302 and actions speak louder than words. Part of that learning must
include developing better knowledge and understanding of people and how people interact
in organisations to create culture. This learning needs to be more than an intellectual
experience. Rather, it needs to be experienced personally and subjectively by reflecting on
decisions and challenging behaviours. The decisions that we take, and the alignment of
actions and words, are the windows into integrity. Change must start with the self; without
self-awareness it is difficult to change.
Voice and shared experiences: Culture is created by shared interactions between people
in groups. Culture is in the spaces between us, formed by how we choose to respond to
incidents with regard to: purpose – the work we set out to do; authority – who we accept as
leader(s) and how we want authority to be dispersed; intimacy – how we treat each other
and want to be treated ourselves. At its very heart, it is a process of learning and trust.
302 Roger Steare, Culture and the Good Corporation, 2013.