What I Learn from DBS CEO, Piyush Gupta Discussion

In 2009, Piyush Gupta took the helm of DBS Bank, a midsize Asian bank with about 22,000 employees that was previously known for having the "lowest customer satisfaction scores of any bank in Singapore", and mocked by Taxi driver as the “Damn, Bloody, Slow” bank. Under Piyush Gupta's leadership, DBS underwent a remarkable transformation, becoming the world's best digital bank not sooner than 2016 couple of years ahead of the pan. During a recent discussion with Piyush Gupta that I witness, he elaborated on the key learning from DBS's journey, providing valuable insights for organizations embarking on their own digital transformation.

And before sharing them, I wanted to contextualized the remarkable efforts. DBS, a bank founded by the Government of Singapore in 1968, was facing significant challenges in the wake of the global financial crisis. Recognizing the need for a fundamental shift, the bank kicked off its transformation in 2009 with a new corporate strategy centered on the concept of 'Asian-ness'. This was a strategic move to distance the bank from the turmoil in the Western-led financial sector and position it as a uniquely Asian institution. The following year in 2010, the top 50 people in DBS Bank met for two days and distilled close to 100 ideas down into three core concepts: Respectful, Easy to deal with, and Dependable – also known as the "RED" framework. But it wasn't until 2014, however, that DBS truly embarked on an enterprise-wide digital transformation journey, with the board of directors taking a direct and active role in leading the change. This story is now taught in Business School and has a book.

(Digital) Transformation Strategy

The key idea behind DBS's transformation was simple yet powerful: "Act more like a technology start-up, and less like a bank. Make the bank disappear." This mindset shift was critical, as it allowed the bank to focus on delighting customers by making banking effortless and becoming "invisible" in the process. Achieving this vision required fundamental changes in the bank's culture, operational and technical expertise, and also operating model. For example, to recruit and retain digital talent, DBS adopted innovative strategies like hackathons and established technology hubs in Singapore, Hong Kong, and India. The bank also invested heavily in institutional learning, launching initiatives like Digify, a module-based learning pathway to train employees in concepts such as agile, big data, and journey thinking. Additionally, DBS created the DBS Academy to provide a DBS-specific curriculum for training technologists, ensuring a steady pipeline of digital-savvy talent.

Management Toolset, Skillset and Mindset

DBS deployed a wide range of digital transformation tools, including Journey Mapping, Design Thinking, and Data-Driven Decision Making. However, the key difference was the scale at which the bank implemented these capabilities. DBS actively involved employees of all ages and backgrounds in its transformation, even throwing "40- and 50-year-olds" into hackathons to help them embrace a digital mindset. One of the pivotal moments in DBS's transformation was in 2015, when the bank made it a key performance indicator (KPI) for everyone to run an experiment. This resulted in the execution of over 1,000 experiments, with most of the senior leadership actively participating. This approach helped the organization rapidly develop a framework for senior leaders to adopt a "digital mindset" and learn to think and operate like a startup.

Behavioral Change … at Scale

DBS recognized that even with the best and most innovative people on board, transforming the company's culture into a large-scale startup would be a significant challenge. The bank focused on building trust and creating a culture of psychological safety around experimentation. This included setting aside a $200 million budget for experiments without tracking outcomes, which helped foster a startup-like mentality where failure was an option in the traditionally risk-averse banking industry. DBS also implemented various "Behavior Enablers, Artifacts, and Nudges" (BEANs) to encourage innovation. One example was the "MoJo" meeting ritual, where the "Mo" (Meeting Owner) and the "Jo" (Joyful Observer) worked together to run more effective meetings. Another initiative was the "Racoon" process, which allowed employees to question and challenge the status quo without fear of retaliation. These BEANs were designed to prime the organization for a cultural shift toward experimentation and customer-centricity.

Never Surprise Your Board

Gupta emphasized the importance of maintaining a trusted relationship between the management team and the board of directors. Digital transformation is a board-level agenda, as it represents a cultural shift toward customer-centricity and away from a product-centric or boss-centric approach. DBS included the board in the risk-taking process, allowing the chairman to sit in on management committees … and silently listening. Accountability was also a key focus, with the CEO and management team facing pay cuts during a period of digital disruptions in 2023. This demonstrated the organization's commitment to the transformation and the shared responsibility for its success. Gupta also highlighted the importance of not measuring too early, as defining success metrics too soon can limit the organization's ability to experiment freely.

In Retrospective

DBS's transformation under Piyush Gupta's leadership serves as a remarkable case study in successful digital transformation. By embracing a startup mindset, investing in talent and learning, fostering a culture of experimentation and trust, and aligning the entire organization around a customer-centric vision, DBS was able to reinvent itself as the world's best digital bank. The lessons from DBS's journey provide valuable insights for any organization looking to navigate the challenges of digital transformation. From cultivating a digital-first culture to aligning the board and management team, DBS's experience highlights the importance of a holistic, people-centric approach to driving lasting change. As organizations continue to grapple with the ever-evolving digital landscape, the DBS story stands as a beacon of inspiration and a roadmap for successful transformation.