Self-basting and aggrandisement:
To a man, we have decried the bankers, financiers and law makers, and many CEOs for their ‘fat cat’ payouts, excessive profits and bonuses, lack of being in-touch with reality, but have we really spotted what these financial rewards are really payment for? It would appear the rewards are for unprincipled and detrimental behaviours that even a street trader would be offend by. Values such as: Integrity, Honesty, Selflessness and Responsibility seem to have disappeared from our vernacular as we greedily try to imitate Mr Matthew’s self-basting turkeys for self-aggrandisement. (This conjures up a ghastly picture of a dead bird cooking away in the oven, ladling itself somehow, to make it’s skin crispier (or is that us in the coming Summer sun?)) It is that greed that appears to have clouded the moral fibre of us all. Sir Roger Moore was once quoted as saying: ‘I enjoy being a highly overpaid actor’, and recently added: ‘Of course I do, I would be a bloody fool if I didn’t’.
The problem appears to be, that if everyone around you has loose morals you too would be ‘a fool if you didn’t.’ Observing these extraordinary times where the banks’ lack of regulation and rigour have created a house of cards, or our politicians lack of ownership for the errors in their expense claims, one question we should ask ourselves is: how righteous can you and your organisation be? Blame is often laid at the door of entrepreneurialism, capitalism or commercialism, yet if you look closely at their true purpose, none would condone reckless or excessive expenditure to the detriment of profit. Now that pressure is on to stay afloat in any way possible, there is even greater pressure and temptation to cross the moral fibre line.
Can you honestly say you run your business driven by high moral values and standards? How would we be able to test that statement if we were to meet your staff, or were a client of yours? It certainly would not be by seeing the Core Values written in the Annual Accounts or nicely framed on Reception’s wall. Years ago, working with the Partners of a large US law firm in their London office on employee engagement and management, one Partner said to me: ‘Values? Oh yes we had a big exercise where Consultants came in and told us which 12 we should pick. I have it laminated, and on my desk, but I don’t look at them – a complete waste of time, as we do our own thing.’ If you the leaders can’t agree the value of values, or any consistency of standards, then why should your staff? Surely they will take their lead from your behaviour, mimic it, or worse, be guided by values of their own that could be more detrimental to the business. Is this a risk you should take?
Developing a moral compass:
With ‘elders and betters’ capable of such shoddy standards, where can organisations and individuals find true role models on whom to base their own standards, and so create their own moral compass? Does this start in the Boardroom, offices, College, University, school, the Church – or at the knee of our parents? What distinguishes one business, culture (and nation) from another is how it chooses to behave. The respect offered to, and received from its citizens in everyday life and the code by which people manage and regulate themselves 24/7 should be in such a way that it reduces the risk of possible offenders. Ideally a mature business, culture (or nation) should not need to enforce its moral standards through excessive legislation (or rules) because all those involved have understood and learnt what the values are and abide by them. However, where there are constant additions or shifts to the group structure,(e.g. redundancies, restricted services, loss of key clients) communication breaks down, values can be lost and hence rules and policing become inevitable reinforcement measures. By changing any element, so any previous risk assessment becomes invalid, the group becomes exposed, and often unprepared for dangerous behaviour by the few.
If we are unable to re-define or confirm what our values should be, then we cannot grasp the moral nettle we are faced with. As a minimum each Executive Board should undertake an exercise to:
- Review any existing value statements, Core Values or similar, checking for validity, accuracy and currency;
- Assess the risk of failing to meet these moral standards, via regulation, compliance, Professional Indemnity Insurances, damaged client relationships, lost suppliers and of course, demoralised staff;
- Consider how to ensure these values are re-communicated and understood throughout the firm;
- Reinforce outcomes through objectives, sales targets and strategies, Key Performance Indicators, the Performance Management and Disciplinary processes;
- Ensure Corporate Governance is rigorously applied and adhered to through regular scrutiny (both internal and external);
- Foster a culture of openness, shift the concept of Whistle Blowing to one of Moral Compass reminding.
The Executive Board should ensure the Business Development/Marketing Team reflect the Core Values defined internally to match what is offered to clients, suppliers and the external world: a Ying and Yang. HR should work with all operational and functional teams to help purge the business of any miscreants, acting swiftly and decisively if there is inappropriate behaviour. Leadership is at the heart of the passion and determination to get this one right.
Neither deceit nor fraud are acceptable responses to ailing sales and slimmed down profits. Only those who are incapable, have lived off others’ successes would now need to stoop this low in their desperation. It is a sad day for the UK when we have organisations willingly stepping into this mire – the braver ones seek help from their staff to build a truly robust and overt culture: and so, in the long run will be the true winners!