Change is inevitable in the financial services industry, as new technologies, regulations, customer expectations, and competitors emerge and disrupt the status quo. How can you, as a leader, manage change effectively and help your team and organization adapt and thrive in the changing environment? Here are some tips and best practices to guide you.
Before you implement any change initiative, you need to understand the current state of your organization, the external and internal drivers of change, the desired outcomes and benefits of change, and the potential risks and challenges of change. You can use tools such as SWOT analysis, stakeholder analysis, gap analysis, and change impact analysis to conduct a comprehensive assessment of the situation and identify the scope, scale, and urgency of change.
Understand how the business area makes money or if a cost centre, what is it set up to do. Very often, over time, you see slippage from the original design intent. Return to design intent and check it is understood or if it is still relevant. My experience is that many teams and departments in FS have grown to treat symptoms rather than address a larger root cause which, if sorted, would question the need for the dept at all
Given that change is important and every enterprise should be prepared for the change, why do you need to change? Are you following the market, from which you could also copy some architectures/structures, or are you willing to change the business itself? Those are two utterly different situations. Another important point is to identify who wants the change, it is an internal requirement or an external one? Identifying the sponsors could end in the success or the failure of the transformation
Once you have a clear picture of the change you want to achieve, you need to communicate it effectively to your team and other stakeholders. You need to articulate the purpose, goals, and benefits of change, as well as the roles and responsibilities of everyone involved. You also need to address any concerns, questions, or objections that may arise and provide feedback and support throughout the change process. You can use channels such as newsletters, emails, meetings, webinars, and social media to communicate the vision and engage your audience.
I believe that when the bank's results come from the development of its customers' success in learning, evolving and achieving their goals and consequently the collective ones, financial services have great potential in the development of society. While financial services are focused only on capturing value, the less prosperous the institution is.
Change can be stressful and challenging for your team, especially if they feel uncertain, resistant, or overwhelmed by the new expectations and demands. You can empower your team by involving them in the planning and execution of change, providing them with the necessary training and resources, recognizing and rewarding their efforts and achievements, and creating a culture of trust and collaboration. You can also empower your team by encouraging them to share their ideas, feedback, and concerns, and by addressing any issues or conflicts promptly and constructively.
Be sure to engage not only the management but also the more operative people. They need transparency in order to spread the change
Change is not a one-time event, but a continuous process that requires constant monitoring and evaluation. You need to track the progress and performance of your change initiative, using indicators such as milestones, metrics, feedback, and outcomes. You also need to evaluate the effectiveness and impact of your change initiative, using methods such as surveys, interviews, focus groups, and audits. You need to use the data and insights you gather to identify any gaps, issues, or opportunities for improvement, and to adjust your strategy and actions accordingly.
This will require some humility. When monitoring and evaluating listen to feedback and if something requires change, do it. We cannot let ego and lack of experience get in the way of success. Surround yourself with people who have already been to where you want to get and listen to them.
Change is not only a challenge, but also an opportunity to celebrate and sustain your achievements and learnings. You need to acknowledge and appreciate the contributions and accomplishments of your team and other stakeholders, and to celebrate the positive results and outcomes of your change initiative. You also need to sustain the momentum and commitment of your change initiative, by reinforcing the new behaviors and practices, embedding the new values and norms, and integrating the new systems and processes into your organization.
It’s always a good idea to celebrate success in order to sustain. If you don’t celebrate success someone else will and that’s how great talent is lost.
A basic rule of any change/transformation is to do no harm to current performance. Thus one must monitor KPIs and drivers in order to manage risk. In financial industry the two most important drivers to monitor would be "data quality" and "effectiveness of risk/compliance controls". As per the overall framework of change / transformation, it remains the same across all industries.