Culture

"Culture takes time to create, is enduring and resistant to change and is almost impossible to copy. It is this which can make culture an organisation's most valuable (or value depreciating) asset." Page 185 of the Salz Review.

I sense that we are tired of hearing about culture and associated buzz words. We are bored with reading about yet another review about risk management culture. But wait let's look at a snap shot of quotes from commentary of the Salz Report, the Report commissioned by Barclays Bank to look at its role in the Libor scandal.

Barclays chairman Sir David Walker, reacting to the review's publication back in April 2013, said in a statement: "The board asked for an insightful, rigorous, and, crucially, independent view of how Barclays could improve. Informed by unprecedented access to the bank and its people, that is precisely what we have received, and I thank Anthony Salz and his team on behalf of the Board for the very great effort and care they have taken in their work."

" The report makes for uncomfortable reading in parts. That is bound to be the case when one asks for an independent examination of this kind, and we must learn from the findings."

Salz also found evidence of reluctance among staff to escalate issues of concern. He wrote: "There was also in some parts of the group a sense that senior management did not want to hear bad news and that employees should be capable of solving problems."

Salz found that Barclays' remuneration systems over-emphasised short-term financial performance and "tended to reward revenue generation rather than serving the interests of customers and clients."

The review added that: Many of our interviewees told us that while some members of Barclays Capital's top team inspired and valued loyalty , the team disliked bad news. This all combined to create an environment in which leaders were rarely effectively tested or challenged, contributing to a sense of ambiguity about what was considered right and wrong.

It's worth returning to the original documents to get further insight. If you want a quick read and close to home read this about safety culture in the Pike River Mine ... READ MORE

The Salz Report is worth a read but it is 244 pages long. For a 101 on culture go to the index on pages 177 to 195. For an expose on Barclays culture go to the main report pages 76 to 97 ... READ MORE

For a history lesson go back to the Turnball guidance. The language is about risk management and internal control. Read through that it's really about the culture required to achieve objectives ... READ MORE