Measuring organisational culture & conduct risk

Compliance and regulation is changing, measuring organisational culture is becoming an expectation, but how is this achieved?

The Challenge

Culture and how people behaviour are increasing seen as a lead indicator of risk to business performance, conduct risk and compliance.   Its management is critical yet measuring organisational culture using existing tools is fundamentally flawed.  These current tools such as questioning style audits and surveys rely upon either value judgements such as feelings or what people say or record what has happened in the past.

This poses a problem in that these approaches are backward looking and whilst provide useful insights they are not forward looking.  For example, it’s like looking in the rear-view mirror when driving a car instead of the windscreen.

The methods are born out of seeing what is be assessed or surveyed in a mechanistic way.  This is where there is a focus on outputs and driving out variation, things can be pre-determined and subsequently checked whereas culture is a complex interaction between human beings so is non-linear and focused on outcomes and managing variety.  The culture is the ever changing ‘business as normal’ which cannot be predetermined.

Therefore, if the traditional methods are not as effective as we would like how can culture be measured to deliver an accurate picture of its impact on performance and compliance.

Our Solution

HPO Clearview meets this challenge by accepting the weaknesses of the traditional methods and creating a completely different approach.

The task is to collect the objective evidence needed. However, if this not visible or known and free of bias and people’s value judgements what can this evidence look like?

What HPO Clearview does is collect experiences that people have as part of their everyday activities.  These are not questions, nor have visible scoring systems or indeed correct or incorrect answers.  In short they are just experiences. 

Culture is really just a collection of people’s behaviour.  By understanding and consistently analysing this we can work out risk to business performance and compliance to create a forward looking view.  In many ways it is like creating a new type of KPI that is forward instead backward looking so management can act before it is too late.

Risk, be large or small, to business performance, compliance and conduct risk emerges from the culture.  It a product of the culture.

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