Creating Digital-Ready Cultures – Essay Furious


Welcome to Leading
through Digital
Disruption
Topic: Creating Digital-Ready Cultures
Tutor: Matilde D’Amelio
[email protected]

Today’s Agenda
Today’s Learning Outcomes
Recap previous topic
Digital-Ready Cultures
Leading Digital Cultures
Activity 1: Leaders & Digital Transformation at
DBS
Lean and Agile
Activity 2: ING Bank uses Agile
Review of Apply Activity
Recap, Q&A, Discussion
Next steps

Today’s Learning Outcomes
Critically Assess the need for fostering a new, digital
culture to support digital transformation
Analyse the role of formal and informal leaders in fostering
a digital culture
Explore strategies and techniques to help create a digital
culture, with a focus on Lean and Agile methods

Recap of Previous
Topic

Digital-Ready Cultures
Organisational Culture
The sum of its shared values, behaviours
and unwritten rules.
These intangible elements guide how
employees think, feel and act.
In this this way, an organisation’s culture
influences every decision and action made
within.
Hofstede Cultural Dimension Framework
Digital-Ready Cultures: Key Concepts
Source: BGC
Why
• Attract (digital) talents
• Faster execution
• Lower risks of failure
What
• External orientation
• Customer-oriented
• Autonomy
• Work iteratively
• Take risks & learn quick from failure
• Collaboration
How
• Define target digital-culture
• Identity new behaviours
• Communicate culture change
• Leaders as role model
• Engaged employees

Hofstede Cultural Dimensions in Digital Cultures
Leading Digital
Cultures

Who can Lead Digital Cultures and How?
Formal Leaders
• Persons officially
designated as leaders of
a group
Informal Leaders
• Persons not officially
appointed as leaders,
but others look to them
for motivation &
inspiration

Recognise the importance of embedding
the right culture to support digital
transformation
Prioritise culture change as a key enabler
for digital transformation
Foster culture change by sharing &
modelling the new values & behaviours
they want employees to embody

The Role of Formal Leaders
Deliberate
Engagement
Leverage
on
Influencers
Upskill
interpersonal
Skills
Set-up New
Digital
Operating
Models
Create
Transparency

Identify & Engage Informal Leaders
Source: PwC
Networker
Early
Adopters
Exemplars builders Pride
Look outside the star
performers pool
Freedom to tell their
own story
No Formal Process
Short-time
Involvement

Activity 1: Leaders &
Digital Transformation
at DBS

How Leaders at DBS created a
Digital-Ready Culture
Source: MIT Sloan Article, Section “How DBS Bank Built a Digital-Ready Culture”, pp 63-65
Creation of DBS Digital Culture: Possible Solutions
Identify the target digital culture
Leaders visited major digital players to understand their corporate cultures and used
them as benchmark to understand behaviours that need to be changed
Develop a customer-centric culture
Use data to understand voiced and unvoiced customers’ needs
Agile method used for IT and product development team for higher and quicker
products and services delivery
Focus only on customer centric activities (e.g. reduction of waiting time)
Automatise processes and introduce digital technology that simply customers’
experience (e.g. chatbox)
Develop employees’ engagement
• Use data to understand employees’ needs (e.g. are they leaving?)
• Leave employees freedom of experimentation
• Employees can continuously self-improve (e.g. coaching, training, mentoring,
collaboration platforms)

Break Time
If you have not done it, yet, please do
your Apply activity and post it in the
forum during the break!

Lean and Agile
Why does Lean and Agile Work Well for
Digital Cultures?
Source: ThinkWithGoogle
Agile and Lean Methods
AMAZON’S TWO PIZZA RULE
AGILE SPRINT (SCRUM)
MINIMUM VIABLE PRODUCT (MVP) AGILE BOARDS
BUILD-MEASURE-LEAN

Hybrid Methods and Organisations
Hybrid
Organisational
Structure
Core structure Functional
units Agile units services Shared
Iteractive Methodology
Hybrid Methodology
Hybrid Organisations
Traditional Methodology
Activity 2: ING Bank
uses Agile

ING Bank: New way of working with Agile
Reading and Video: https://agilebusinessmanifesto.com/agilebusiness/agile-transformation-at-ing/
ING Bank uses Agile: Possible Solutions (1/2)
How it works
• Employees are organised across squads (small, multidisciplinary
teams – max 9 people) responsible end-to-end for their specific
customer-related mission
• Coordination between members take place inside
chapters that go
across squads
• To ensure collaboration across the organisation, squads with
interconnected missions are collected in
tribes (more than 150
people)
Key roles in ING Agile working mode
Product Owner: define what a squad does, manage backlog and to
do list and determine priorities
Chapter Lead: define how work should be tackled in a chapter,
responsible for personal development, coaching and performance
review of chapter members
Tribe Lead: ensure knowledge and insights are shared across
squads, establish priorities, allocate budget, interact with other tribes
Agile Coach: coach individuals and squads on how to use Agile
method

ING Bank uses Agile: Possible Solutions (2/2)
Sample of squads and tribes:
Squad Mortgage Application: developing and implementing customer
friendly and efficient way to move from first mortgage submission to final
approval
Squad Search Engine: developing and implementing a customer friendly
and effective search engine for different digital channels
Tribe Security and Private Banking: aggregate all squads working on the
development and implementation of security and private banking services
Tribe Mortgage Services: aggregate all squads working on the
development and implementation of mortgage services
Benefits of using Agile:
• Quick reaction to change in customers’ needs higher customer
satisfaction
Breaking silos and less time wasted in ping-ponging across departments
• Less time wasted in meeting and more room for autonomy and personal
initiative
higher employees’ satisfaction
• More collaboration across the organisation and quick execution (thanks to
a trial and error approach and constant adjustments)

Apply Section
This Photo by Unknown Author is licensed under CC BY
Recap, Q&A,
Discussion

Key Takeaways
You should be now able to:
• Discuss the importance of creating the right
organisational culture for enabling digital
transformation
• Analyse the role of leaders in creating a digital-first
and customer-centric culture
• Assess the benefits of Lean and Agile approaches
as key components of a digital-ready culture
• Evaluate strategies that could aid your chosen
organisation in creating a digital-ready culture

Next Steps
• Review the fundamental information
• Go through the Preparation and Apply part of this week (if
not done yet)
• Go through the Consolidation part of this week
• Go through the Preparation and Apply part of next week
• See you next week same time!

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