Scarcely a day passes without news of another major bank losing billions because of poor investments in so-called financial instruments - the sort of deals that Arthur Daly would have turned his Crombie collar up at.
Doesn't this indicate serious shortcomings in leadership and management training in these organisations?
Two weeks ago it was the Royal Bank of Scotland passing out the begging bowl in the form of a rights issue to raise cash to cover shortfalls brought about by disastrous investments. This week it's the turn of HBOS (Halifax and Bank of Scotland) to beg for the odd £4 billion from its shareholders. Well I'm one and I can tell you they'll get an impolite sod-off from me.
Senior management at these custodians of capital have brought losses on their organisations that would test even King Creosus's counting house clerks. Blame has been laid at their doors and also at the morality of these slaves of mammon for letting greed and super bonuses cloud their better judgement - that's if they had any in the first place.
Surely another culprit should be named: the senior and management and leadership training the "top teams" at these institutions have received. Part of this should have focused on good and sound stewardship of the organisations concerned. Good and sound governance should surely have been on the curriculum.
If they - and other pertinent subjects such as laying off bets - weren't then they should be.
The horrendous decsions made by some of these greed-driven captians of capitalism will cost many hapless souls their jobs, their homes not to mention the cost to the taxpayer of keeping these pillars of the economy afloat.
I suggest that whoever provides the big banks management and leadership training should take some hard lessons from the sub-prime and dodgy financial instruments cock-up and adjust their programmes accordingly.
Comments (1)
Dear John,
I agree wholeheartedly with your comments on leadership training in the banking industry - as you expect I might, as the Chief Executive of the Chartered Institute of Bankers in Scotland (CIOBS).
CIOBS is the oldest banking institute in the world, and now the only banking institute left in the UK. For nearly 140 years we have been training to maintain ethical and professional standards in banking, and train young bankers in the basics of responsible lending and good bank management. In recent years, however, banks in the UK and overseas have diverted training resources away from these basics, and towards the types of leadership training you allude to above.
Education, not regulation is the only long-term answer to the challenges facing the banking industry at present. It won't be leadership and advanced management training that will restore trust and confidence, it will be education and training designed to inculcate high professional standards.
CIOBS is challenging all banks to back us in our campaign to bring these standards back.
Yours sincerely,
Simon Thompson
Posted by Simon Thompson | September 20, 2008 11:14 AM
Posted on September 20, 2008 11:14