Is Culture Finally Mainstream?

Harry Wilson, Banking Correspondent for the Telegraph, asked in the paper today whether culture is important in banking?  In the wake of Barclays fine for the deceitful manipulation of LIBOR rates and a fresh mis-selling scandal, the word 'culture' has come up time and time again:

• Governor of the Bank of England, Sir Mervyn King launched a stinging attack on the banking industry and demanded a "real change in culture"...
• Prime Minister David Cameron vowed that the Government will change banking culture, adding that they know what has gone wrong with the UK's banking sector and that they will put it right ...
• Leader of the opposition Ed Miliband called for a full-scale inquiry into banking culture and practices ...
• Lord Turner, chairman of the Financial Services Authority, said the cultural problem in investment banking was not limited to those involved in the Libor fixing scandal. Condemning Barclays, he said: “There is a degree of cynicism and greed that is quite shocking. I think we would be fooling ourselves if we thought that some of the behaviour and culture evidenced in Libor fixing are not found in some other areas of trading activity as well.” ...
• Simon Walker, director general of the Institute of Directors condemned the culture of banking, adding that it was "high time" for a clearout of those in charge
• And even Bob Diamond, Barclays Chief Executive and head of the investment banking unit when the failings identified by the FSA occurred had previously said that culture was at the heart of his recovery plan for Barclays.  Last year he defined it as being "how people behave when they think no-one is watching."

The importance of organisational culture seems to be more widely recognised than ever.  Perhaps it has finally lost the 'pink and fluffy' tag?

Is there also a case for every bank to have its own culture team, working with senior management to articulate the desired future culture and ensure a deep understanding of the current one?

LinkedIn: http://uk.linkedin.com/in/timhadfield
Twitter: @accordengage
Telephone: 0044 07906650019