Driving change in the Financial Sector

Nearly all the institutions interviewed have a process for annual strategic planning, but there are fundamental differences in how institutions go about reviewing trends and data, what the output of the strategy is and how it is converted into concrete action plans to be implemented. There is a tendency in many organisations for strategic planning to stay within the status quo rather than addressing disruptive opportunities. Organisational elements like project governance, performance management structures and leadership styles also affect the ability to drive effective change.

Accenture’s change framework was used FIGURE 5. Organisational change framework to evaluate different approaches to change between leading and mid-tier institutions across Strategic Planning, the Project Lifecycle, Change Enablement & Integration, and Leadership capabilities.

They have less focus on challenging status quo or exploring fundamentally new and innovative opportunities. • In many cases a “bottom up” process prevails, where executives describe their departments’ actions within broader corporate themes. • CSR strategies are often made on the side of core business.

• Product-driven operating models and a focus on large-scale near-term returns, making it difficult to commit to new business models. • They have bias towards existing customers, making it difficult to develop products that are relevant to new segments. • The focus on scale often results in “big bang roll-out” vs. the iterative process of “try, fail, learn, scale”

• C-level team tends to plan strategy “top-down” in joint sessions. • Many banks have a stronghold in one or two segments, but follow market trends driving diversification into new segments.

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