Transformation strategies for banking leaders

Banks know that they need to transform, but most are still struggling with how. If banks recognize the importance of a successful transformation, why do they underperform so frequently? And more importantly, how can they make success more likely?

Conversations with banking transformation leaders, as well as our own banking transformation experts reveal that rethinking ideation and investment, keeping humans at the center and re-evaluating performance monitoring will dramatically improve transformation outcomes. Here are the six recommendations for banks that emerged: 

1. Redefine transformation: Rethink what transformation is. Rather than simply maximizing cost takeout or meeting regulatory requirements, banks should focus on fundamentally improving customer and employee experiences. It is about radical rethinking, not refining and streamlining. Putting humans at the center, whether that be employees or customers, is instrumental to success.
2. Lead from the top: Transformation will only succeed if senior leadership, including the board and executive management, engage with the process directly. They must determine and communicate the bank’s transformation vision and strategy, and ensure alignment of executives and senior managers. This is crucial to ensuring buy-in across the entire organization.
3. Rethink transformation ideation and investment evaluation: When evaluating potential transformations, consider the impact on customer and employee experience, as well as on financial performance. Also, set budget aside for risky but potentially game-changing transformations.
4. Reposition for agility at scale: Whether it be core technology, culture, team structure or governance, act to ensure transformation can be executed swiftly and that initiatives can pivot quickly, as required.
5. Reorchestrate talent: Articulate a new value proposition to attract, reskill and retain key skills. Transformation teams should be diverse with respect to gender, ethnicity and work experiences.
6. Re-evaluate tracking and performance monitoring: Assess transformation success using multiple financial and nonfinancial metrics, and ensure that a central transformation team applies lessons learned from failed projects to future transformation initiatives.