24 Apr Banking Industry Royal Commission
Australians have been waking up in recent times to some very sobering news, as a result of the Banking Industry Royal Commission. The findings of the Commission have been so concerning, that the Federal government has agreed to extend the time the Commission has to report, should it be required.
We should ask ourselves – “what went so terribly wrong?” More importantly “what can we learn from these findings?” While no one would deny the importance of a properly empowered regulator, is there something more that the organisations themselves can do to prevent this occurring again?
I argue that, for too long, has executive and Board level recruitment and selection been an ‘evidence – free’ zone. There is, I believe, a sufficiently strong enough case for banks to engage in independently delivered psychological assessment, as part of an integrated decision-making process, before making any senior appointment.
In my experience it is essential that this is run independently of other selection processes.
This means that an independent and qualified psychologist should conduct a psychological assessment process, and that this is run in addition to any internal processes an organisation might have.
Also, it is critical that robust psychological assessments for senior and executive appointments should similarly be independent of any Executive Search firm processes.
Organisations owe it to their customers and shareholders to ensure senior and executive appointments are made with optimal rigour. The price paid for getting such appointments wrong is simply too great.