A recent discussion in the Complexity in Organisations group on LinkedIn drew attention to comments made in June 2010 by the then head of the Financial Services Authority, Hector Sants. In a speech to members of the Chartered Institute for Securities and Investment (reported here), he expressed his view that regulators should have their brief extended to include oversight of the cultures of those organizations that were subject to their regulation. According to Sants,
"Unacceptable culture within firms was a major contributor to the financial crisis and so regulators should play a greater role in judging how culture drives firms' behaviour and impacts on society as a whole, according to the chief executive of the Financial Services Authority (FSA)."
He made great play on the need for prudence in managers' decision-making, before concluding that,
"Determining an ethical framework is for society as a whole, not an unelected regulatory agency. However, it is, I believe, our role to police behaviour and expect firms to have the right culture which facilitates the delivery of the outcomes we expect."
For Sants’s prescription to make sense, though, the following statements would need to be true:
- The “prudence” or otherwise of a manager's decision is obvious at the instant that the decision is made.
- There is a direct causal link between managers' decisions and “societal outcomes”.
- “Culture” is the product of a manager's intentions (i.e. something that they can design, build, and change at will).
- There is a direct causal link between an “unacceptable culture” and the “outcomes [that] that drives”.
So do these stack up?
Pledges, promises, and policy commitments – How not to run the country
With less than eight weeks to go to the UK General Election, Ed Miliband yesterday unveiled Labour’s “five pledges” to the British electorate. These are not the first statements to be made by the leader of a political party during the current campaign. And they won’t be the last. As usual, politicians of all parties are falling over themselves to out-promise each other, as they go in search of media headlines, people’s votes, and what they see as the ultimate goal of political power.
The five ‘straplines’ on Labour’s pledge card are so vague and anodyne that the words would not look out of place if they had been issued by the Conservatives or Liberal Democrats. But, as Election Day gets closer and manifestos are launched, Party Leaders and other senior politicians will not be backwards at coming forwards with ever more specific “We will…” commitments.
So what does this implied belief in their own ability to deliver on detailed promises – come what may - say about their grasp of the complex and uncertain dynamics of everyday life? Or of how the world works in practice? Not a lot, it seems to me. Either that or it’s all bluff and bluster, designed to appeal to the lowest common denominator of so-called “public opinion”, and to satisfy the constant demand from TV interviewers and media commentators for “straight answers”.
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Posted on 15 March 2015 in Acting Politically, Complexity, Current Affairs, Leadership, News Commentary | Permalink | Comments (0) | TrackBack (0)
Tags: Labour's five pledges; UK politics; complexity; wiggly world; 2015 General Election campaign
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