With digital innovators increasingly influencing customer expectations, a global bank embarked on an internal transformation with three objectives:
- Allow the bank to respond faster to changing customer requirements
- Increase efficiency by breaking down organizational silos and bureaucracy
- Increase staff engagement and make the bank more attractive to digital talent
Drawing inspiration from innovative digital companies, the bank reorganized into mini-start-ups, with employees from marketing, product development, customer intelligence, digital channels, and IT working together in small, multidisciplinary, colocated teams. The teams were empowered to develop, test, deploy, maintain, and adapt customer processes and propositions according to their specific mandates. At the same time, the bank adopted a new governance system that ensured that the teams were aligned with the company’s larger business objectives.
In addition, the traditional manager’s role was replaced by product owners, expertise leaders, and agile coaches geared to building high-performance teams. This enabled the bank to reduce management layers and workforce size in functions like marketing, product management, and digital channels by more than 30 percent. At the same time, the bank attracted new talent from digital innovators outside the company to strengthen its internal capabilities in the most critical areas.
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