Good governance is often spoken of in terms of structure — policies, procedures, roles, and reporting lines. However, beneath these formal elements lies a more elusive, often underappreciated force: institutional culture. This culture — the norms, behaviours, and informal expectations that guide how people act — can either reinforce governance or quietly undermine it. And in moments of crisis, it is culture, not just compliance, that determines whether an institution weathers the storm or collapses under pressure.
As Oman deepens its reform agenda across both the public and private sectors, a central question emerges: how can governance foster an institutional culture that is not only efficient but also resilient? It is easy to mistake governance for a rulebook. But governance, at its core, is a system of incentives and accountability that shapes how people within an organisation behave.
A well-governed entity is not simply one that follows procedures; it is one in which people make the right decisions even when no one is watching. This is especially critical in the public sector, where continuity, institutional memory, and value-for-money must endure beyond any single minister or official. In the corporate world, boards have long recognised that culture is a driver of both performance and risk. Global cases — from the collapse of Enron to the rogue trading scandals at Barings Bank or Société Générale, or Volkswagen’s “Dieselgate” or the UK Post Horizon Scandal — demonstrate that poor culture can subvert even the most sophisticated governance frameworks.
Oman is not immune. Whether in government institutions, regulators, or large state-owned enterprises, risks emerge not only from gaps in procedures but also from cultures that tolerate opacity, discourage open dialogue, or reward short-termism. Resilience — the ability to absorb shocks and adapt to change — is as much about mindset as it is about structure. Institutions that cultivate a culture of learning, psychological safety, and transparent escalation are more likely to identify risks early and adapt swiftly. For instance, a regulatory body that values internal challenge and open communication is better positioned to detect systemic risks in the market. A hospital whose staff feel empowered to report near-misses without fear is safer for patients. A ministry that encourages reflective reviews of past programmes, not just celebratory reporting, is more capable of reform.
But this kind of culture does not arise spontaneously. It must be intentionally designed and reinforced by governance mechanisms — including leadership tone, performance incentives, training programmes, whistleblower protections, and post-mortem learning reviews. While corporate governance has matured significantly in recent decades — with codified principles, audit committees, and board evaluation standards— the public sector in many countries often lacks similarly robust models. Some jurisdictions have begun to adopt public sector governance codes that outline the expectations of stewardship, transparency, integrity, and organisational behaviour. Oman could benefit from the same, and should not confine itself to the civil service code of conduct, or post facto financial and admin audit.
A national governance blueprint for public institutions would articulate the expected cultural norms — such as openness, integrity, and evidence-based decision-making — while embedding structures for internal reflection and learning. It would also incorporate mechanisms for learning from failure, encouraging accountability without fear, and developing leadership talent that upholds values-based management. These are not peripheral features of governance — they are the heart of an institution’s ability to govern itself wisely and withstand external pressures.
Ultimately, governance must evolve from a static set of controls into a living system, one that interacts dynamically with people, decisions, and the social context in which it operates. The true test of governance is not how well an institution functions in times of stability, but how wisely it behaves in moments of uncertainty. To pass that test, we must see governance not merely as oversight, but as behavioural architecture. Only when culture and structure align can institutions endure risk and earn public trust.
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