The document discusses lessons from the Royal Commission into misconduct in the banking industry regarding organizational culture and governance. It recommends that financial services regularly assess and address issues with their culture and governance. Contemporary approaches to culture aim to engage employees to achieve goals. The courageous HR leader must 'unlearn' past approaches and assess culture using tools like the 'cultural web' which examines an organization's symbols, stories, power structures, controls and assumptions. Regularly capturing data on culture indicators and broad board engagement is important. Culture can enable or inhibit business strategy.

1. Be Courageous: Co-create a positive organisational culture
Greg Barnier, Practice Leader Organisation Culture & Workforce Capability
Talent Leaders Connect Sydney, NSW 10 April 2019

2. Today we discuss:
• Lessons from the Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry
• Contemporary approaches that engage people to achieve
• The courageous HR Leader needs to ’unlearn’

3. The Royal Commission: Culture & Governance
Recommendation 5.6 – Changing culture and governance
All financial services entities should, as often as reasonably
possible, take proper steps to:
•assess the entity’s culture and its governance;
•identify any problems with that culture and governance;
•deal with those problems; and
•determine whether the changes it has made have been effective.

4. It is an issue for all organisations

5. ASIC Commissioner has questions for boards
• Has the culture of the organisation been independently assessed?
• Do the stated values match the actual experience of customers,
employees and suppliers?
• Is culture a regular feature on the board or a relevant committee agenda?
• Do directors have broader interaction across the organisation, not just with
executive officers and management?
• Do directors have relationships with key employees, such as line
managers, to gather insights into the company’s culture throughout its
business units?
• Does the board engage with external stakeholders such as customers,
suppliers and even regulators?
• Is data captured on key indicators, for example, employee feedback and
surveys, customer complaints and progress on employee training?

6. “Culture eats strategy for breakfast”
Peter Drucker
“The secret sauce”
Kevin Ford & Jim Osterhaus

7. This PhotobyUnknown Authoris licensedunder CCBY-SA-NC
Talking about culture:

8. The cultural web
Johnson & Scholes 1992
Johnson, Whittington& Scholes 2009
SymbolsStories
Power
structures
Organisational
structures
Control
Systems
Routines
and rituals
Paradigm

9. The cultural web
Johnson & Scholes 1992
Johnson, Whittington& Scholes 2009
SymbolsStories
Power
structures
Organisational
structures
Control
Systems
Routines
and rituals
Paradigm
What objects,events or people do
people identifywith?
What are these related to in the history
of the organisation?
What aspectof strategy is highlighted
in publicity?
Where does powerreside?
a) Status
b) Claim on Resources
c) Symbols of power
Who makes things happen?
Who stops things from
happening?
What are the formaland informal
structures? How rigid? How
hierarchical? Do structures encourage
collaboration or competition?
What types of power structure do they
support?
What is most closelymonitored / controlled?
Is emphasis on reward or punishment?
Are controls rooted in history or current
strategies?
Are there many / few controls?
Which routines are emphasised?
Which are embedded in history?
What behaviour do routines encourage?
What are the key rituals?
What assumptions and core beliefs do they
reflect?
What do training programmesemphasise?
How easy are rituals / routines to change?
What core beliefs to stories reflect?
What stories are commonlytold e.g.
newcomers?
How do these reflectcore assumptions and
beliefs?
What norms do the mavericks deviate from?

10. The courageous HR leader needs to ‘unlearn’ !
The fine print Delegations The policy

11. Internal Consulting Group
For further information email:
greg.barnier@internalconsulting.com
or visit our website:
www.internalconsulting.com
Thank you