The Post Office scandal, with its wrongful accusations and devastating consequences for Subpostmasters, has shocked us all. But what lessons can we all learn?
We talk a lot about the professional skills that accountants need to succeed in their roles, but these often seem like soft fluffy extras, when in fact they are right at the heart of whether we are doing a good or bad job. The Post Office saga clearly demonstrates not only how important good communication is but also how disastrous it can be when we handle it badly.
The Post Office has been widely and severely criticised for its behaviour and continues to be criticised for its handling of the situation. There are no easy answers to how they could do it better, and good communication will never remove the need to acknowledge wrongdoing and face the cost of restitution, but it could help to regain public trust. Here are some simple principles which they have not followed and appear still not to be following.
First Steps:
- Transparent Acknowledgment of Failures:
Rebuilding trust starts with a transparent acknowledgment of failures. Any organisation involved in a scandal must openly admit to shortcomings, and take responsibility for the impact on individuals and businesses.
- Clear and Honest Communication:
The power of clear and honest communication cannot be overstated. Transparency is key in providing affected parties with a comprehensive understanding of what transpired, why it happened, and the steps being taken to address the issues. The behaviour both of Post Office staff and management and of the organisation as a whole could not have been more at odds with this.
- Timely Updates and Progress Reports:
Timely communication is crucial in times of crisis. Regular updates and progress reports keep stakeholders informed, demonstrating a commitment to openness and accountability. By contrast, the Post Office has been opaque and obstructive in its communication.
- Empathy and Understanding:
This one is hard to write because it is so far from the attitude displayed by the Post office. Communication must go beyond facts and figures; it requires empathy and understanding. Recognizing the human toll of the scandal and expressing genuine concern for those affected builds a bridge towards rebuilding trust.
Rebuilding Trust:
- Concrete Corrective Actions:
Trust is not just restored through words but through actions. Concrete corrective actions, whether in the form of technological improvements or systemic reforms, are essential to demonstrate a commitment to rectifying the issues that led to the scandal. By contrast, the Post office still seems to be intent primarily on minimizing their exposure to compensation. They actually seem to believe that it is reasonable that they should get to decide their own penalties.
- Third-Party Validation and Audits:
To rebuild trust, institutions should consider third-party validation and audits. Independent assessments provide an unbiased perspective, assuring stakeholders that the necessary steps have been taken to prevent a recurrence. A number of quasi-independent investigations have already taken place but there has never been confidence that the Post Office was cooperating in a full and open way.
- Long-Term Commitment to Accountability:
Rebuilding trust is a long-term commitment. Institutions must demonstrate an ongoing commitment to accountability, regularly assessing and communicating the effectiveness of implemented changes.
So what lessons are there that we can all learn?
- Proactive Communication:
Proactive communication is critical in the financial sector. Promptly addressing potential issues and transparently communicating actions taken can prevent the escalation of crises.
- Technological Due Diligence:
The Post Office scandal underscores the need for rigorous technological due diligence. Communication about the robustness of financial systems and the ongoing commitment to technological advancements is vital.
- Cultural Shift Towards Trust:
The attitude of the internal audit function and management at the Post Office – the apparent automatic presumption of guilt and total faith in the system – is easy to criticize, but in smaller ways, we are all guilty of those sins from time to time. We need to actively cultivate a cultural shift, placing a premium on trust. This involves prioritizing ethical conduct, transparency, and communication at all levels of the organization.
The Post Office scandal serves as a stark reminder that communication and trust are cornerstones of our work as accountants. We must build confidence in our operations and systems through rigorous quality control and testing, not through autocratic announcements that nothing is wrong. We need stakeholders to trust in the integrity of the financial ecosystem. The journey toward restoration begins with transparent communication and a steadfast commitment to rebuilding the foundations of trust.
Alan Nelson is an author for accountingcpd. To see his courses, Click here.
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