Too often we see financial institutions shift their business strategies but fail to adapt their operating models. The result? Risk soars, performance stops and competitors pounce.
When financial institutions fail to adapt their operating models as their business strategies shift, they often struggle to remain competitive as they attempt to take action across key areas that are shaping today’s CEO agenda – restructuring, regulatory reform, globalisation and changing consumer demands. Many financial institutions attempt to adapt their operating models, but believe that they are always playing catch-up – once a major reorganisation is completed, the strategy has shifted and another overhaul is needed
As a result, financial institutions are under increasing pressure to redesign their operating models with more flexibility to successfully anticipate and respond to these changes.
Financial institutions need to consider leading practices across five operating model components to develop an adaptable operating model:
An effective operating model transformation involves understanding core business objectives and how they interrelate. In addition, strong leadership and employee engagement is critical to enable a seamless transition for both customers and employees.