However, after several years of determined effort to reshape attitudes and behaviour, many boards have been left wondering why the culture within their organisation hasn’t really changed. It’s telling that according to PwC’s Global CEO Survey, over half (59%) of FS CEOs believe that lack of trust in their businesses is a threat to growth.
Analysis by PwC shows a strong culture is more correlated with sustainable high performance than strategy, operating model or product coverage. Culture can become an enduring source of competitive advantage and is set to play an even more important role in the ability of financial services firms globally to sustain profitability and growth. This includes strengthening reputation, innovation, customer-centricity and willingness to embrace change.
PwC’s analysis also shows:
- Behaviour is proving difficult to change: FS organisations have invested heavily in cultivating a culture that promotes risk awareness and ethical behaviour. Yet, regulatory challenges and allegations of misconduct have persisted.
- There can be no cultural change without business buy-in and alignment: If cultural change is simply driven by compliance considerations, it’s difficult to gain buy-in within the organisation. Experience demonstrates that culture can only be changed if this is aligned with business objectives and what employees value. This alignment is the basis for a new take on cultural change.
- Setting a baseline for tracking progress: Culture is often seen as too intangible to evaluate and track. But by assessing the levers that influence it and the behaviour and outcomes it generates, it’s possible to develop a clear and quantifiable assessment. This assessment can then form the basis for clearly targeted interventions that go beyond vague talk of cultural change.
You can’t change an entire culture and way of working overnight. That means it’s vital to set a clear and realisable agenda for change.
However, key judgements and behaviours can be shifted in a relatively short space of time, while helping to build momentum for broader transformation. So it’s important to concentrate efforts on the few decision points and interactions that have the most telling impact. Identifying these ‘moments that matter’ can provide that crucial focus to drive through meaningful and observable change.