In response to the global financial crisis, banks and capital markets firms began a wave of transformation projects. While many are still struggling with cost overruns and missed deadlines from the first wave, resulting cost-reduction pressures have many banks and capital markets firms contemplating a second wave of changes focused on efficiency. How can institutions learn from the past to succeed the second time around?
C-suite executives at leading institutions are now evaluating solutions for regaining profitability at a post-crisis level. Many are considering a second wave of transformations focused on enterprise-wide efficiency and simplification. Some projects on the “to do” list include updating operating models, rolling out emerging technologies, and continuing to digitize their front- and back-office operations.
We’re observing that many institutions are likely to use the same Change the Bank (CTB) operating models from the first wave of transformation even though the existing CTB organizational structures actually contributed to significant delivery challenges and cost overruns.
In this whitepaper, we examine three lessons learned from the first wave of transformations and discuss steps that may help you avoid pitfalls to deliver better results.
As banks and capital markets firms embark on a new round of cost-focused transformations, they have a chance to rethink the way they approach change. Successful enterprises will heed the lessons learned from the failures and challenges of the previous attempts.
Financial firms have too much at stake to leave this to chance. If they are to find the cost-savings they’ll need to survive in an ever more lean market, they’ll have to make adaptation a key capability. Institutions that fundamentally alter the structure of their change organizations could see clear benefits such as:
We’ve seen the patterns of what has worked in first wave transformations and—more profoundly—what has not. Regardless of how far your firm’s change project is down the road, we encourage you to ask some hard questions about change so you are more likely to see the results you want.
Partner, FS Advisory and Digital Labor/RPA Leader, PwC US
Banking and Capital Markets Advisory Leader, PwC US
Director, PwC US