Steve Martin from Agilistic
As the global economy outlook looks more and more uncertain due to the war between Russian and Ukraine, Central Banks’ attempts to deal with inflation and China’s prioritisation of politics over economic growth, the curse springs to mind: ‘May you live in interesting times.’ And interesting times they are, as organisations across different industries are trying to navigate this complex landscape while keeping an eye on current and future operations. In this climate, financial institutions play a key role in helping the economy – both at an organisational and global level – to get through the current turmoil and prepare the ground for a better future.
How financial institutions act now has the potential to determine the future both for company and global prosperity. On top of that, larger financial services companies face increasing pressure from disruptive, fast-moving new competitors who can pivot quickly to adapt to changing markets. Now is a good time for all financial service organisations to embrace Agile which can help them be change-ready, provide strategic guidance and analytical capability for insight.
Establishing an Agile culture for greater return on investment
Agile project management can be integrated into existing processes including planning, control and documentation issues but if the company culture or structure doesn’t adequately support the Agile philosophy then progress can be halted. When financial institutions are faced with Agile, they have traditionally reacted with hesitation. Because of the large amount of regulation within the industry, organisations usually rely on very formal change control procedures and extensive documented processes. Transitioning into Agile therefore is seen as too risky when it should be viewed as an avenue to minimising risk. Agile can offer organisations the speed and efficiency they need for scalable transformation and well-planned innovation helping them to sustain revenue growth and retain market share in an increasingly demanding landscape.
An Agile culture allows different departments to focus on value delivery on an ongoing basis ensuring that every project and process is as lean as possible. It empowers them to take any necessary steps to prepare for challenges and evaluate change and investment based on small bets without hindering growth.
It’s all about strategic alignment
Beyond the adoption of the Agile mindset, organisations also need to get the Agile implementation right in order to reap the desired benefits. Embedding Agile into the company culture and the day-to-day process can increase chances for success, however, many organisations fail to adopt Agile in a meaningful way due to the lack of knowledge, leadership, and know-how. There’s a need for strategic alignment on all levels within the organisation. Elements of Agile can be adapted to different projects and departments, but the organisation’s overall strategy and business objectives should also adapt to Agile. Successful adoption of the discipline depends on this alignment and can make the difference between Agile adoption that lets the firm enjoy all the benefits, or one that falters. Executive investment and commitment is crucial every step of the way, along with clear cross-team delivery government with clear roles and responsibilities while breaking down any silos. That commitment supports a way of working that relies on facts rather than opinions, and promotes honesty, openness, and collegiality across the various teams.
Getting the planning stage right
Could you embed Agile into the company culture and processes while day to day operations are charging ahead at full speed? It’d be like trying to change a flat tyre while the car is still moving. You simply can’t. Yes, you may feel that you’re wasting time but think how much distance you will be able to cover faster and better when you’re moving at full speed again. Often, financial institutions get caught up in trying to deliver large numbers of projects which will benefit different stakeholder groups while keeping shareholders happy. As a result, teams try to keep all plates spinning which can detract them from identifying new ways in which they can deliver real value to the business.
This doesn’t mean that all projects and ways of doing things should be dropped right away in favour of Agile. When a financial institution does decide to go Agile, the transition should be implemented in well-paced stages. What companies really need to do is devote time and effort into the planning stage and take a seriously look at their current ways of working. During this transition period, there need to realistic expectations regarding deliverables across different levels. Adopting this ‘stop – think’ approach doesn’t come naturally in the world of finance, however training, mentoring and pilot projects can help organisations ease into Agile.
Going all in
An end-to-end Agile culture and operating model may seem daunting at first but financial organisations which have adopted Agile can serve their customers better and more quickly, speed up the product to market process, improve their internal efficiencies and risk management and build a thriving culture.
That’s why strong sponsorship by senior executives will be required to help navigate this transition, but it’s well worth the effort and will ensure that you’re not left behind by competitors that are seeing early wins at accelerated rates.
