The recent viral video incident involving a private bank’s executives has highlighted a critical issue that goes beyond specific individuals or organisations —it sheds light on today’s widely prevalent organisational culture and the primacy of Profit over People.
The incident highlights the need for systemic change and rethinking our ways of work at their very core. It is imperative that we move beyond victimising the individuals and specific organisations involved and instead focus on how institutions can shape their culture to prevent such incidents in the future.
It also serves as a reminder of the larger issues within the Indian Banking, Financial Services, asset management and Insurance (BFSI) industry, including an excessive focus on sales, rather than humans who constitute the employee and customer bases of these organisation.
Generations of institutional leaders are equally to be blamed in shaping the industry to its current sales ideology and consequent culture and practices rather than becoming responsible brands-of-choice for Employees as well as Customers.
As a cynic once put it “even a culture (used) in a microbiology lab is better and harmless, than the Indian BFSI”. But the challenge of running a profitable organisation with growth in profits is an expectation from for-profit entities. The majority of shareholders do not care about organisational culture. They want growth in numbers, and increased dividends and valuations. But then, who should catalyse this change --Regulators? Boards? Strategic investors? or All of them?
Firstly, it is essential to recognise that individuals often behave within the boundaries and norms set by the organisational culture they operate in. While holding individuals accountable for their actions is important, it is equally crucial to address the root causes that enable such behaviour to persist. Organisations and Leaders at every level must take responsibility for shaping a culture that promotes humane and ethical conduct, transparency, and customer-centricity.
So, here we examine what actually contributes to such poor behaviour?
Wrong Metrics for Rewards:
The prevalent emphasis on financial results as the primary measure of leadership performance raises questions about the weightage assigned to other critical aspects of leadership. While financial results are essential, should they dominate the evaluation process with a 90 percent weightage?
Striking a balance between financial results and leadership behaviours is crucial for fostering a more holistic approach to performance evaluation. Allocating a more equitable balance, such as 50 percent for financial results and 50% for leadership qualities, encourages leaders to focus not only on short-term gains but also on sustainable growth and ethical practices. It also entails placing equal importance on customer satisfaction, financial education, and responsible sales practices.
Unrealistic Expectations:
The pursuit of endless hypergrowth and escalating individual targets can lead to immense pressure on employees, including leaders. In the same market with the same set of products and increasing competition, expecting exponential growth can create an environment that fosters unethical behaviours. It is essential for organisations to set realistic targets and recognise the limits of team capabilities in a given 9-hour work day. Additionally, the impact of such unrealistic expectations on the mental and physical health of employees must not be overlooked. Prioritising employee well-being and ensuring work-life balance is crucial for maintaining a healthy and ethical work environment.
The Ineffectiveness of Leadership Training:
Despite organisations investing significant resources in leadership training ($ 370 billion globally in 2019 as reported by research.com), it is disheartening to see the persistence of leadership failures of many types. This calls for a critical evaluation of the existing approaches to leadership training. Rethinking the traditional teaching-centric model and exploring alternative methods that leverage the advance of non traditional sciences such as Neuroscience and focus on experiential learning and practical application have been shown to yield better results. The age old 70-20-10 model, which suggests that 70 percent of learning comes from on-the-job experiences, 20 percent from interactions with others, and 10 percent from formal training, needs to be adapted to today’s environment, particularly in a hybrid workplace world. Organisations should prioritise creating opportunities for leaders to learn and grow through real-life challenges, mentorship programs, and cross-functional collaborations. Values and Culture "On the Wall":
Most organisations invest substantial time and resources in crafting and communicating their values and culture. However, individuals mostly struggle to understand how to translate those lofty principles into their everyday work. Merely having values displayed on office walls or communicated through corporate messaging is not enough. Organisations must focus on bridging the gap between espoused values and actual behaviours. This can be only be achieved by making the practice of Values and Culture an everyday, on the job habit. Providing clear guidance, executive role modelling, on integrating values into performance evaluations and recognition programs are other good practices to reinforce Values and Culture.
Don’t victimise the individual
While poor workplace behaviour cannot have consequences, organisations are also duty bound to provide the individuals concerned adequate support and resources. This is particularly true in the case of first offenders.
Institutions and organisations should take a compassionate approach when dealing with individuals involved in such incidents. An emphasis on counselling, guidance, and rehabilitation is needed. This approach aims to help individuals understand the impact of their actions, reflect on their behaviour, and develop the necessary skills and mindset to contribute positively to the organisation in the future.
By providing access to professional counselling services, organisations can create a safe space for individuals to express their concerns, address any underlying issues, and receive guidance on personal and professional development. Additionally, mentoring programs can be implemented to provide individuals with ongoing support and guidance. Pairing them with experienced professionals who can serve as mentors can help them navigate the challenges they face, learn from their mistakes, and develop a strong ethical compass. Most Indian organisations deliver very poorly in using mentors and coaches.
It is crucial to recognise that individuals within an organisation are not isolated entities; they are products of the culture in which they operate. Rather than solely blaming and punishing the individuals involved, we should view such incidents as an opportunity for introspection and change within the larger system. By addressing the underlying factors that contribute to such behaviour, we can create an environment that fosters ethical conduct and personal growth.
While it is essential to support and counsel individuals involved in such incidents, it is equally important to ensure that the victims of any wrongdoing are provided with the necessary support and justice. Organisations should have robust mechanisms in place to address any harm caused, provide restitution, and ensure a safe and inclusive work environment for all employees.
Lastly, this incident should serve as a wake-up call for the entire BFSI industry. There will be another such incident and it will probably be in your organisation with consequent damages to your reputation. Hopefully organisations will take prompt action to reevaluate their culture, leadership development practices, and priorities. The focus should shift towards building long-term human relationships - both employee and customer - based on trust, transparency, and responsible financial practices.
Is India Inc up for the challenge?
— The authors, Srinath Sridharan, is a Writer, Policy Researcher and Corporate Advisor, and Smita Affinwalla, is a Corporate Advisor. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Jun 11, 2023 8:09 AM IST
