Jan Babiak is a non-executive director with long experience and expertise in IT and cyber security, risk governance, and sustainability. She has served on the boards of Fortune 20 companies and FTSE 100 organisations.
Three strikes and you’re out. When senior executives kept clicking on phishing emails, Jan Babiak set a clear rule: the third time they do it, their names would go straight to the board.
“Amazingly, things got much stronger once I put that rule in place,” she recalls. “Nobody wants to be reported to the board for something like this.”
Jan Babiak is a veteran in the field. Trained as a chartered accountant, she moved early into technology and IT security, becoming a certified information systems auditor and a certified information security manager. She spent nearly three decades at a global management consulting firm, where she was a founder of their global IT/cyber security practice and later built its global climate change and sustainability practice. Over the years, she has served on boards ranging from Fortune 20 companies to FTSE 100s and a $1.5 trillion North American bank as well as private equity and privately owned companies. Her observations apply to all of them.
Her philosophy for transforming an organisation, centres on accountability. “You can’t take it on faith,” she says. “Human nature is what it is, and people, unless they’re held accountable, rarely change.” This is because it is a fight against inertia. “If people have always done it that way, then most people resist change,” she observes. “What I find interesting is, everyone agrees things need to change…as long as it means they don’t have to change.” She quotes John Maynard Keynes who said: “Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone opts for the latter.”
So sometimes leaders need to face an uncomfortable truth. “Every organisation has a culture. Let’s do an honest evaluation of the culture and decide whether that’s the culture we want. If it’s not, then let’s name what the culture is and what we want it to be and look at the steps to get there.”
Take cyber security culture as an example. Jan says that too many companies treat cyber security as the sole responsibility of the IT and/or security team, instead of embedding it into the fabric of how the organisation operates. The problem, she argues, is one of misplaced trust. “Cultures are too trusting of the fact that cyber can deal with it, and everything will come out fine in the end.”
She believes that “a problem defined is a problem half solved.” Leaders must name it, measure it, and make it visible.
And it is also the leaders’ responsibility to drive that cultural shift. When it comes to selecting senior leaders, this is why Jan is “very much looking for enablers, not a police force.” They need to have the right balance of being supportive and nurturing, while holding people accountable even if it sometimes requires something harsh. As leaders, she believes they need to show ‘courage over comfort’ and they need to build a new culture into the system: set expectations, give people resources and opportunities to learn, and tie their behaviours to tangible outcomes.
At one organisation with tens of thousands of employees, those who clicked on phishing tests had thirty days to complete remedial training. Miss that deadline, and they received a warning. Fail to comply after that, and the organisation would cut off all system access.
“I’ve never been in a situation where we actually had to do it,” she notes, “because usually you can put enough peer pressure on and have management holding people accountable.”
Accountability doesn’t stop at training modules. Internal audit has to look at who has administrative privileges, where controls are lax, where access is too broad. Managers who don’t attend to cyber vulnerabilities should see a penalty reflected in their performance assessment and even their pay cheque.
Jan is also realistic about the limits of transforming people. After repeated attempts, it becomes clear some people just won’t budge. “If you can’t change the people, change the people,” she says. That is, either move them to roles better suited to their capabilities within the organisation or urge them to find employment elsewhere, perhaps where security is less important. It may sound severe, but she believes it’s a necessary course of action – considering the risks of letting things be.
Her approach won’t appeal to everyone. But when you’ve overseen trillion-dollar banks and critical infrastructure, the stakes leave little room for softness. The adversaries aren’t gentle, and the threats aren’t theoretical. With emerging technologies, the cost of complacency only grows, and the threats are escalating with agentic AI and the reality that quantum computing will likely render current encryption protocols completely ineffective
Sometimes, discomfort isn’t a side effect of culture change. It’s the catalyst.