We need to improve standards so that Ireland Inc is viewed in a more favourable light, writes TONY MCGUIRE

I AM ANGRY. I am angry that those with low standards should be allowed to define how Irish business is viewed, indeed how all of Ireland and the Irish people are viewed by the rest of Europe, the rest of the world. I’m angry that their attitudes and actions should have such a detrimental effect on the ordinary people, ordinary business and ordinary life.

Where are they now, those leaders of enterprises who preached to us about the wonderful things they were doing for our economy, the wonderful things they were doing for us, the people, the small business owners? They are gone to ground.

But anger is not enough; what we need is action to change this country and the way we do business. That means we need to change our business culture.

Culture is not just about how we think and act as a nation. Neither is it simply about attitude and manners, although that should be part of it. Culture in business is about how we do our business. It is all the small things we do and say as we go about our business; it is about how we do things. A good business culture means goals and objectives are clearly set by the company, that everyone understands them, understands their role in achieving them and most importantly, understands the values and behaviours they should use in achieving those goals.

How many times recently have we seen leaders of large enterprises in this country state that their objective is to protect shareholder value, yet they motivate their staff to take extraordinary risk in the business they undertake and thus undermine shareholder value?

In short, these leaders said one thing and did the opposite. Then they, like their counterparts in the Government, had the nerve to deny any accountability – “we didn’t see it coming” and “no, I won’t resign”.

Culture when it is properly defined can be a source of real competitive advantage. For all businesses, it is not simply about strategy, but how the strategy is achieved about the actions, values and behaviours that achieve it. If fact, culture is behaviour. A strong culture that supports the objectives of the business can lead to substantial increases in profitability, the core of any business.

At my company, System Dynamics, we have changed our business culture radically in the last three years. We found, that while we thought we were thinking about our clients constantly, we weren’t. We had been thinking about ourselves.

Three years later, after implementing a significant culture change programme, we have a separate team of people whose sole job is to focus on the delivery of our commitment to our clients, to ensure that we do what we say we do. Even in these most difficult times, this has had an amazing effect on our business. Our repeat business rose from 62 per cent to 80 per cent in just three years. We must be doing something right.

Culture can be this country’s greatest competitive advantage. But to get to the point where our large enterprises and public services can make a significant change to the culture of Ireland Inc, we must start at the very top.

At this point, to restore credibility, we must go outside the existing gene pool to recruit the new top brass. They must be as far away from the existing bubble as possible. Those who are left in senior banking positions should be asking themselves what part they played in all of this. Any of them who cannot look in the mirror and say truthfully: “I acted honestly and with integrity. I am not the problem” must go.

Much has been made of their salary levels, but I think that misses the point. We have got to pay whatever it costs to get the right people, be they from Canada, the US or London to run our big businesses properly. For those salaries, the new management should have their objectives clearly outlined to them and then tied directly to consequences for success and failure.

Practitioners of applied behavioural science tell us that 80 per cent of our behaviour is determined by consequences. Let’s pay the right salaries to the right people in business and in the public service. But let’s ensure they have the right consequences, ones aligned with the objectives and goals of the business.

I’m angry and thousands of ordinary people and small business owners in this country are angry. I no longer accept that this country is defined by those with low standards and low culture. I want my voice heard. Make your voice heard too.

Tony McGuire is managing director of IT firm System Dynamics