The UK Post Office ‘Horizon IT scandal’ inquiry has drawn to a close after many months.  It highlights a sad tale of lack of integrity, a toxic human culture, and human failing.

Most articles on the topic refer to accounting system bugs, weaknesses, etc.  We tend to forget that humans design, develop, test, implement, control, and reconcile these systems.

Instead of fixing the system ‘weaknesses’, a blame culture kicks in so that, for over 25 years, employees, managers, and boards of directors hide the truth, mislead, and even prosecute innocent people to deflect blame. 

The result is innocent people bearing the brunt of the mess, paying with their lives, and livelihood.  Typically, it’s the least protected person, in this case the branch operator, who gets it in the neck.

Here's a summary and key learning points:

Summary:

The Horizon IT scandal involved the wrongful prosecution of over 900 post office operators due to faulty accounting software. The inquiry's closing statements heavily criticized the Post Office's leadership and culture, while also acknowledging the contributions of other parties like Fujitsu and the government. The Post Office was accused of "despicable" behaviour, including a culture of contempt for branch operators, dishonesty, and misleading various stakeholders. While other parties were also criticized, the Post Office bore the brunt of the blame.  

Key Learning Points:

• Toxic Organizational Culture: The Post Office fostered a culture of "contempt" for branch operators, indifference to the truth, and a "despicable" attitude. This toxic culture was identified as a primary driver of the scandal. This highlights the critical importance of a healthy organizational culture that values honesty, transparency, and respect for all stakeholders.  

• Leadership Failure: Post Office executives were described as "weak and arrogant," "culpably dishonest," and "incurious." This demonstrates the devastating impact of poor leadership on an organization and its stakeholders. Leaders must prioritize ethical behaviour, transparency, and accountability.  

• Dishonesty and Cover-Up: The Post Office repeatedly provided false, misleading, and incomplete information to ministers, parliament, courts, and the public. This emphasizes the dangers of dishonesty and cover-ups, which can exacerbate problems and lead to significant injustices.  

• Blame Shifting and Self-Preservation: Various parties, including former CEO Paula Vennells and Fujitsu, attempted to deflect blame and protect themselves. This underscores the importance of taking responsibility for one's actions and avoiding blame-shifting.

• Systemic Failure: While the Post Office was primarily blamed, the government, Fujitsu, and other agencies were also criticized for their roles in the scandal. This reveals a systemic failure involving multiple actors and highlights the need for robust oversight and accountability mechanisms.   Imagine, Fujitsu have named over 70 individuals who knew there were issues with the accounting system.

• Impact on Individuals: The scandal had a devastating impact on hundreds of post office operators who were wrongly prosecuted and financially ruined. This emphasizes the human cost of organizational failures and the importance of protecting individuals from injustice.  

• Importance of Independent Oversight: The public inquiry played a crucial role in uncovering the truth and holding those responsible accountable. This demonstrates the value of independent oversight in preventing and addressing organizational wrongdoing.

• Faulty Software and Technical Issues: The core issue was the faulty Horizon software. This highlights the importance of rigorous testing, quality assurance, and prompt action when technical problems arise, especially in systems with significant financial implications.  It now transpires that faulty software has been in use since 1992!

• Government Accountability: As the sole shareholder, the government acknowledged its ultimate accountability for the Post Office's actions, even while claiming to have been misled. This emphasizes that ownership and oversight come with responsibility.

The Horizon scandal serves as a stark reminder of the devastating consequences of toxic organizational culture, leadership failure, dishonesty, and systemic failures. It underscores the critical importance of ethical behaviour, transparency, accountability, and robust oversight in all organizations.