Agile Transformation Case Studies.

Agile in a Banking Industry

Banking Industry faces the most challenging VUCA impacts in the business operation and organization. Aligning and synchronizing People - Processes - Technology aspects are the main challenges.

Various common challenges are about People & Culture in Adopting Enterprise Agility; Internal Business Processes to cope and respond to the changes; Defining and Developing an Innovative Product/Service; and Building Safety environment in the Bank that operates in Agile Ways of Working.


Various Common Challenges in Banking Industry

People & Culture in Adopting Enterprise Agility

Most banks digitize and digitalize their process, product, and services.

Some by taking a straightforward way to execute the Digital Transformation journey.

However, in the concept of People-Process-Technology, the Bank leaves behind the People & Culture aspects into consideration.

Challenge is how to synchronize all the focus and bring People & Culture as part of success in the journey.

Internal Business Process To Response To The Change

Aligning the Internal Business Process in the transformation journey required clarity and sponsorship from the Business Leader and Business Owner.

It requires detailing process assessment, evaluation, and robust Change Management factors to drive the organization and process re-engineering to ensure the process can cope and respond to the changes.

The challenge is aligning the internal business process to be more streamlined and integrated with the transformation objectives.

Building a Safety Environment for the Bank operates in Agile Ways of Working

Making tangible benefits of “Agile Ways of Working” requires Psychological Safety.

Everyone in the organization has to feel psychologically safe to express their thoughts, collaborate in their best approach and provide feedback, and grow others through human interaction.

The challenge is building and nurturing Psychological Safety to gain potential from the individual and the team to have the tangible benefit of Agile Ways of Working.

Defining & Developing an Innovative Product/Service

To stay on top of the competition, the Bank must adopt Customer-Centricity.

However, the Bank finds translating that recognition mindset into concrete actions to generate innovative ideas challenging.

Challenge is how to inject process capability to define and develop an Innovative Product/Service and make it a process culture in the transformation journey to be sustained.


How we co-create and tailor our services

Fostering People & Culture in Adopting Enterprise Agility

In the Transformation Journey, adopting Enterprise Agility takes all stakeholders to be part of the process.

It is a movement and not solely the Human Capital job.

We co-create the Program with Management, Key Leaders, and Human Capital to fit with the Bank Transformation Roadmap and Strategic Objectives.

The Program will start at the Leadership level and cascade to functional and team levels.

We combine surveys, workshops, Working Group activities, and process monitoring & evaluation according to the transformation timeframe.

Building Capability and Coaching processes are part of the deliverable execution to ensure all aspects of People-Process-Technology are synchronized and integrated.

Streamlining & Integrating Business Process

Streamlining and integrating Business processes could be a complex issue.

Change Management is a relevant approach to transitioning processes change.

We co-create the Program with respective Business Leaders and Business Owners to evaluate Structure Organization, Role Responsibility & Authority and redefine the Job-Function to achieve impact for business and organization to cope and respond to the change needed.

We deploy a combination of framework and methodology (i.e., BPM, Lean Management, Six Sigma, etc.) to create a streamlined & integrated business process that improves Value Creation, Productivity, and Go To Market.

Customize Learning Materials, and Business Consultation processes are part of the deliverable execution to ensure the Business Process Improvement, Operating Model, and Operations Guidelines are in place.

Embedding Psychological Safety

The role of the Leader and Key Stakeholder in the Transformation Journey to adopt “Agile Ways of Working” is crucial.

They are the sponsor and the main factor of the success as they must walk the talk exercising a psychological safety environment.

We co-create the Program with Human Capital for Leaders and Key Stakeholders to have the capability to do Coaching, evaluate the current state and progress to the future state as well as actively promote the value and culture of openness, feedback cycle, and collaboration.

Building Capability of Innovative Product/Service

An Innovative Product/Service could not be made in a single way or effort.

We co-create the program to increase functional business collaboration, integrate potential partnerships across the ecosystem, and embed the know-how of Customer-Centricity adoption.

We deploy knowledge of Design Thinking, engage with a relevant partner for Innovation Lab, run the event of Innovation Bootcamp/Hacketon, and provide some support for internal innovation competition to accelerate the program.


Various Outcomes That Provide A Tangible Impact

Improved the Business & Organization Agility

1) Leadership Team has a common ground of understanding and perspective on managing the transformation staging process.

·The term “Agility” become Value for the Organization
·Leaders become active sponsors in Business Objectives or Technology Projects.

2) Strategic Business & Technology Objectives have been translated from a silo/waterfall concept into an Agile collaborative and iterative approach.

· Fewer silos in Business Planning and Performance Management Evaluation
·Cross-functional collaboration running through regular brief-debrief cadence.

3) Shifting and alignment in the organization structure have been gradually implemented to more dynamic works.

·Reconstruction and Creation of New Functional Business consist of cross-functional competencies.
·Creation of Agile CoE/Center of Excellence to govern the Agile Transformation program for long-term and sustainability objectives.

Improved the Business Process Management

1) Directorate / Division / Department business process alignment and synchronization are in place, and progress of ongoing to keep pace with the changes.

·Application of combined Lean Management and Kaizen Process Improvement in Lending and Funding processes.
·Regular Exchange Knowledge and Sharing Sessions become regular bi-monthly agenda across functional leaders.

2) Redefine or new operating models align with the transformation journey objective.

·Refining Value Chain within Digital Lending and Retail Banking
·New business model in SME/Small Medium Enterprise Lending to include new product and technology approach as business process improvement.

3) Adoption of a dynamic Collaborative Team (i.e., Tribe/Squad) with an application of OKR/Objective Key Results as performance management has been applied in business process and technology projects.

·Retail Business and Wholesale Business reconstruct the team structure & composition according to the Business Plan Objectives.
·Technology team distributed changes from the traditional IT silo department across the product portfolio.

Improved the Psychological Safety

1) Board of Management’s enthusiasm for making Psychological Safety an organizational culture.

·The CEO suggests that one of the organization’s cultures is embedding thoughts and practices of Psychological Safety.
·All BOD-2 Leaders and Key Stakeholders have been trained and coached to practice the framework and concept of Psychological Safety.

2)Leaders & Team 1:1 Coaching on Psychological Safety

·Trained Leaders and Key Stakeholders mostly have regular 1:1 coaching sessions with their team.

3)Feedback Pool and 1:1 Feedback implementation

·Leaders and Key Stakeholders provide constructive Feedback as part of Team Members’ Personal Development

Improved the Innovative Product/Service

1) Events and activities related to in-house Product/Service achievement have been initiated.

· Small-scale Design Thinking project in Wholesale Banking already implemented as a pilot to nurture the capability.
·Year End Competition & Award for collaboration and product/service ideation implementation.

2) Study to enhance Business Ecosystem by involving Bank’s Venture

·Initiation engaging a start-up model and product/service from Bank’s Venture to test enhancing the ecosystem.

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