Insync partnered with the Australian HR Institute (AHRI) recently to conduct a survey on key aspects of cultural change in this new post Hayne Royal Commission era. Whilst Insync and AHRI's first report will be released in around 4 or 5 weeks, we offer a sneak preview below of some of the findings.
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One of the preliminary findings of the Insync/AHRI research that involved almost 1,000 responses across different industries, different sized organisations and included perspectives of CEOs, executives and employees showed that it is not only large banks and other financial services organisations that need the sort of cultural change uncovered by the Hayne Royal Commission.
This research showed that professional services, education and training, government and public administration and healthcare and social assistance, among others, also need significant cultural change and, in some respects, need even greater change that the financial services sector.
This finding is likely to shock many Australians as the Hayne Royal Commission has narrowed the focus to banks and other financial services organisations, and what we've seen has shown them in very bad light. These findings do however line up with the anecdotal views of AHRI's experienced HR professional members and Insync's extensive research, including its employee engagement and culture reviews for hundreds of organisations across most industries.
Insync's research shows that financial services organisations, on average, are not much better or worse than organisations in other industries in terms of engaging their employees but they often have a slightly better risk culture, as one would probably expect that they should, than many other commercial industries. This is illustrated by the following chart that shows that financial services industry respondents perceive that their current state is as good or better than those from many other sectors when it comes to responding to the survey item, "Our employees are never encouraged to 'bend the rules' to get a result."
Overwhelming survey respondents agreed that their organisation's culture is critical to the execution of its strategy. Peter Drucker said, culture eats strategy for breakfast. Some have taken that further to say, organisation culture eats strategy for breakfast, lunch and dinner so don't leave it unattended.
Survey respondents also overwhelmingly agreed that their CEO's and executive's leadership behaviours have a significant impact on their organisation's culture. That should be of no surprise. It also sets a very high bar for the leadership behaviours of CEOs and executives - whether they like it or not.
But do employees think that their CEO and executives are living up to the leadership behaviours they expect? To find out, we asked survey respondents several additional questions including whether they thought that their CEO and other leaders regularly talk about ethics and doing the right thing? And if not, what change do they think is required?
The results below show that employees expect leaders to spend much more time talking about ethics and doing the right thing. In the absence of hearing regularly about ethics, and hearing and seeing the adverse consequences of not living up to those ethics, they will rightly think their leaders have much more important priorities.
The Cultural Change Survey asked respondents to consider the extent that they agreed with 29 probing survey items, including the following. Their responses to many of these survey items will be included in our upcoming Insync/AHRI Cultural Change Report.
Our Insync/AHRI Cultural Change Report, to be released in late August, will answer the following important questions:
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