CityAM, 26 September, Barney Reynolds
How banks run themselves has been a topic of great consternation since the financial crisis.
Yet too many of the numerous functions undertaken by commercial and investment banks are wrongly seen as capable of being controlled predominantly through processes – often designed by management consultants and other non-lawyers.
Those processes are ineffective in achieving deep-seated, sustainable cultural change.
The practice of “culture-by-consultancy” can in fact defeat rather than enhance culture-building by virtue of its box-ticking approach. Many of the current processes will remain ineffective unless there is greater involvement from lawyers at both the design and implementation stages.
After 2008, regulators sought to encourage a culture of probity, loyalty to clients, and compliance. Managers were exhorted to set an appropriate tone from the top.
Pronouncements by regulators led to banks developing processes to comply, often reaching out to consultants for help. This approach has involved extensive paperwork, training and data-gathering exercises. Latterly, cultural change programmes have used similar techniques in seeking to address “softer” issues such as diversity, recognition of environmental interests and social change.
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