Debt drug junkies
Easy to blame the banks for all of our ills, but if they're the drug dealers peddling the debt drug, we're the junkies, who lapped this stuff up - credit cards, loans, mortgages. We're as addicted to debt as the dealers are to quick cash. The problem is that the dealers became massive junkies themselves, borrowing on a massive scale to feed the beast. What has always concerned me, and I've mentioned this often enough in this blog, is the attitude of financial institutions towards compliance and regulatory training, which was meant to cub this overzealous enthusiasm.
You don't stop drug dealers and junkies by talking at them in classrooms or making them do read text interspersed with multiple choice questions. That's why almost all regulatory and compliance training makes the situation worse, not better. HR departments plays the following corrupt game:
1. Hire lawyers to deliver the training (they're boring, can't teach and simply reiterate the law)
2. Deliver dull classroom courses that fail to put people into real jeopardy situations
3. Deliver even duller e-learning courses that push the issues out of people's minds
4. Treat compliance e-learning as a commoditised, low price, rapid e-learning task, ensuring it's lack of punch and effectiveness
5. Refuse to admit to, and use, real, internal failures and disaster stories to make the point
6. Play the 'tick-box' game - just do it, don't worry if you've learnt anything
We have Professor Frank Dobson from Harvard showing us that at least one species of compliance training is completely ineffective, if not counter-productive. Has anyone really read or taken action on the back of this overwhelming evidence (702 companies)? No.
The FSA have been one of the real culprits here. They just can't hack it in delivering training but so are the training departments who commission this stuff. The solution is now clear. Behaviour will be curbed by further restrictions and laws. Deal drugs, go to jail. By failing to make it clear that corrupt practices and behaviour will be punished, we've all paid the price.
For employees to toe the line on regulation and compliance, you need attitudinal and behavioural change. This meas serious performance simulations that put people in realistic situations. We have the tools, design and capability to do this, but hardly anyone has the balls to commit the, albeit meagre. budgets to get the job done.
Capitalism could be reshaped by rehsaping minds towards reasonable, fair and rational management and selling. A mass training programme, using powerful, immersive, scenario-drive performance simulations is required on the back of all this chaos, or we'll be in the same position further down the line.