The KPMG report on the reinvention of British Banks estimates the cost of conduct failings in 2013 at a massive 80% of cumulative profits. In other words, bad behaviour is having a major impact on the viability of the British banking sector. Of course bad behaviour always starts with flawed values.
What this report shows, in my opinion, is that greed is at the heart of the British banking system. Greed is always bad for business, because it erodes trust. And that is exactly what is happening. There is a major crisis of trust in the banking industry, and it starts at the top:The culture of an organisation is always a reflection of leadership consciousness.
Who are the people running our banks? What happened to their values? Are these people fit to run companies? My conclusion is they are not, because they do not understand how values operate. This may not be true of everyone, as I am sure there are many people working in the banking industry that come from a place of high intention, but based on the evidence, five year on from the banking crisis, I wonder to what extent their voices are being heard. I know that whatever energy you operate with is the energy you get back. The past greed of the leaders of our banks is coming home to roost, and investors are paying for it. If you are an investor, in the banking sector, it is about time you woke up to the fact that unless the banks you invest in are driven by values, you are throwing your money away.
The KPMG report concludes:
As we have discussed, all banks are working on a massive conduct agenda and undergoing a cultural revolution. The million dollar questions are “How will be measure success?” and “How will banks be able to assess if they are truly restoring trust?”
The answer to these question is simple: By mapping their values; finding out from employees what values operate in the bank, and asking customers what values they see in their bank. The tools are available … If you want to build a values-driven organisation then go here and take a look at this (click here).