KPMG has developed a model that helps to understand, identify, measure and monitor organisational culture, behaviour and its impact on the controls environment.
The models consists of eight elements that have a real or potential impact on behaviour.
The Soft Controls model is based on extensive research by Prof Dr Muel Kaptein, Partner, KPMG Netherlands and global subject matter expert, who studied 150 derailments within organisations – frauds, non-compliance, and collapses – and researched to find what the 'human' root cause of the derailment was. Based on this analysis, it was identified that the root cause of the 150 derailments studied linked back to one of eight soft controls. He then built a framework and methodology around this that helps us to understand, identify, measure and monitor organisational culture.
This model gives organisations a valid tool for getting a clear picture of the current organisational situation, confront it, and break through the silence and passivity.