Organisations need outsiders to challenge their dysfunctional narratives

By Martin Vogel

Groupthink is rarely healthy
Groupthink is rarely healthy

I’ve been reconnecting with my work on narratives in coaching for a seminar I held this week for a City law firm. I was struck by how the prism of narratives helps us understand the enduring power of organisational cultures that foster corporate scandals – and by the questions this raises for our ethical orientation as coaches.

The problem of dysfunctional organisational cultures just won’t go away. Dysfunction is such an anodyne word, it barely scratches the surface of the harm that is wrought by self-serving organisational cultures. This week we heard how a cover-up at the Care Quality Commission of its own failings in inspecting a hospital in Barrow contributed to the needless deaths of at least eight mothers and babies. An organisation that exists to protect the public interest in health care put protecting its own reputation above the safety of patients.

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Dysfunctional banking cultures: what they need is servant leadership

By Martin Vogel

How do you set right a corporate culture beset with “systematic dishonesty” – as Barclays has been described by its former chief executive, Martin Taylor?

The scandal at Barclays over its rigging of financial markets seems to represent a turning point which will require all banks to take a long, deep look at how the ways in which they operate may contradict the public interest. Were we not already in the worst financial crisis in living memory, the computer failure at RBS – which has prevented customers accessing their money and is still ongoing at Ulster Bank – would count as a monumental banking failure in its own right, evidence itself of the incompetence, negligence and greed that over many years has overwhelmed an ethos of stewardship at the major banks. On top of that, came news last week that the big four banks had committed serious failings in their mis-selling of interest rate hedges to small and medium-sized businesses

Small wonder that the Governor of the Bank of England has described the banks as “shoddy” and “deceitful”. Or that the Director-General of the Institute of Directors has said the banks “should feel deep shame for the damage they have done”.

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