Since the start of the financial crisis there has been much talk, by politicians especially, of the need for a Change of Culture within organisations, particularly banks. As time has progressed, the focus for this CoC has become bonuses, sparked by the pay-outs being made to staff by Goldman Sachs.
One of the key reasons why so many financial institutions failed, I would suggest, was due to leadership. Too many of the organisations that needed to be bailed out were led by men whose narcissistic tendencies meant that they believed they were right, and consequently did not feel the need to listen to others. They were aided and abetted by corporate cultures that were concerned primarily about making profit and less about how it was achieved. The leaders' egos were further fuelled by political complicity, too. Let's not forget that Fred Goodwin was a regular visitor to No.11, a close advisor to the Chancellor, and was rewarded in 2004 with a Knighthood for (try not to giggle now) 'Services to Banking'.
There is a touch of irony in Goldman Sachs being the stimulus for the current round of bonus bashing. They appear to be one of the few organisations that genuinely tries to uphold its values, and may be an example to others.
At the same time as the calls for a CoC, we find members of the Cabinet promoting the ambitions of Tony Blair to be the EU President. Having studied Blair in some depth, I think it could be argued that his leadership style - excitement seeking, lacking in empathy, an over-reliance on charm and persuasion - is precisely the sort that led so many banks to near-ruin and which will ultimately come to typify his era.
The ways in which organisations choose their leaders, as well as the qualities being sought, are all things that need to be examined if a genuine CoC is to be achieved. It would help if politicians could set an example.
