As it relates to building the right team and organizing the team in the best possible way, the same historical norms apply to digital transformation...with a few wrinkles. In today's modernizing banking technology landscape, different skill sets are involved than were present ten or fifteen years ago. Namely, technical and data-oriented skills are mission-critical to the team, whereas that really wasn't the case years ago. Organizing these skills is critical to overall success because, from an organizational design perspective, a bank must have deep organizational design knowledge of how to organize a bank and a technology company.
From a people and organizational design perspective, the problem is that the skill required to produce a successful outcome in digital transformation has changed dramatically over the last decade.
Today, the various components of the strategy include data strategy, cloud, and infrastructure strategy, and they require a deep bench of technical skill sets to go along with the people who bring the business expertise together with regard to how to monetize digital strategy. These two worlds could not be more different, and the cultures of these worlds are very different as well. From an organizational design perspective, the challenge is primarily a function of putting those two cultures together in a cohesive unit or team to get the desired outcome. You are essentially building a bank and a technology company at the same time, which is not easy.
The impact of getting the best people and the right culture that allows technical and business skills is optimal.
The positive impacts of getting this right mean a digital strategy that covers all its bases from the standpoint that you end up with a well-designed digital strategy that optimizes for the best use of data and infrastructure while still being able to monetize the digital strategy from a business perspective. Conversely, getting the organizational design aspects of digital strategy wrong often means a fragmented digital strategy that leaves gaps from a data or technical perspective or a digital strategy that is hard to monetize from a business perspective.
Having seen both the ups and downs of having the right skillsets on the team along with the best organizational design, I'd offer the following lessons learned:
If you've spent your entire career in banking, it's important to zoom out and understand what a proper technical team looks like and behaves like from an organizational design perspective. Building a high-performing digital strategy is very technical, but how the technical skillsets operate and what they expect from the business side is unique.
It's easier said than done, but starting with the end in mind with regard to digital strategy is definitely the move. The business side needs clarity on the outcomes with as much clarity on the different aspects of monetization as possible. Otherwise, the technical side will not be able to operate effectively with regard to data strategy, infrastructure strategy, and one-day AI strategy.
Based on personal experience, here are a few practical steps to begin understanding and addressing the best practices in organizational design and necessary skills related to the establishment of digital strategy:
Spend the necessary time to understand what outcomes you are trying to produce with your digital strategy. Break the problem down into smaller components, meaning identify which parts of the business you want to address with your digital strategy as a mechanism for defining outcomes.
Often, we do not start from scratch from a skillset or organizational design perspective. Further, we often try to repurpose resources and skillsets from other areas of the organization to fill our needs elsewhere. This comes with a great need for proper change management practices, which consultants can assist with as it relates to organizational design.
Finding a balance between the business and technical sides is important to executing the digital strategy successfully. Further, to achieve the best outcomes, bring this team together early in the journey.
Much of developing digital strategy involves building muscle memory across the team's technical and business skill sets. Like any team, they will likely improve their ability to work together through repetition. Starting small to get a few "reps" together is often important in the overall plan.
Let your digital strategy team get some quick wins. The right team, organized properly, will be off and running.
Finov8r is a leading embedded advisory consultancy that supports banks, fintechs, and corporations. Bridging finance and technology, Finov8r provides tailored solutions that foster profitable growth, simplify technology complexities, and deliver 5x ROI through fintech innovations. With hands-on advisory, Finov8r works within teams to achieve long-term results, unlock new revenue streams, and modernize operations. For more information, visit finov8r.com and follow on LinkedIn.
Bank executive, fintech founder or business owner and want to get in touch regarding Finov8r advisory? Email me at allan@finov8r.com.
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