Byimplementing Agile practices and investing in modern IT infrastructure, the bank aimed tocreate a more innovative and dynamic work environment, enhancing its ability to attract andreta
FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION ============== EMERGING ISSUES IN MANAGEMENT TOPIC: AGILE TRANSFORMATION OF RAIFFEISENBANK Lecturer: Mr Ngo Quy Nham Class ID: QTRE304 (GD2-HK2-2023).1 GROUP Đoàn Minh Hằng 2012250030 Lê Ngọc Diệp 2012250022 Nguyễn Ngọc Huyền 2014250204 Phạm Thị Lan Anh 2012250009 Trần Ngọc Thanh Tú 2012250077 Hanoi, June 20th 2023 TABLE OF CONTENTS A INTRODUCTION I Summary II Reason to change III How did the transformation impact the organizational structure and working style B CASE ANALYSIS I PROBLEMS AND CAUSES Problem: Fear from staff Problem: Talent gap Problem: Complicated and lengthy decision making process Problem: Silos in the organization II SOLUTION Problem 1: Fear from Staff Problem 2: Talent Gap Problem 3: Complicated and lengthy decision making process Problem 4: Silos in the organization III ACTION PLAN Problem 1: Fear from Staff Problem 2: Talent Gap Problem 3: Complicated and lengthy decision making process Problem 4: Silos in the organization C CONCLUSION D REFERENCES A INTRODUCTION Summary Raiffeisenbank, a traditional bank in Russia, underwent a successful Agile transformation led by CEO Sergey Monin The bank embraced Agile principles, restructured into autonomous teams, and implemented new technology infrastructure They focused on strengthening their employer brand, attracting top talent, and investing in an integrated IT system for optimized recruitment The transformation resulted in tripled IT specialist numbers, recognition as a digital leader, increased customer adoption of digital channels, and financial success Despite the challenges posed by the COVID-19 pandemic and the need for enhanced collaboration, Raiffeisenbank remains committed to refining its organizational structure and delivering value in the evolving financial landscape Reason to change - Increasing customer expectations: The bank faced the challenge of meeting the rising expectations of customers who were demanding more personalized and convenient digital banking services By adopting Agile practices, Raiffeisenbank aimed to enhance its ability to deliver customer-centric solutions quickly and efficiently - Competitive landscape: The financial industry is evolving rapidly, with the emergence of fintech startups and digital disruptors Raiffeisenbank recognized the need to stay competitive and differentiate itself by embracing Agile methodologies, which enable faster innovation, flexibility, and adaptability to market changes - Internal process improvement: The bank aimed to streamline its internal processes, increase collaboration, and foster a culture of continuous improvement Agile transformation offered a framework to optimize workflows, break down silos, and encourage cross-functional teams to work together towards common goals - Attracting and retaining talent: Raiffeisenbank sought to position itself as an attractive employer for top talent, particularly those with expertise in digital technologies By implementing Agile practices and investing in modern IT infrastructure, the bank aimed to create a more innovative and dynamic work environment, enhancing its ability to attract and retain skilled professionals How did the transformation impact the organizational structure and working style - Shifted from a traditional hierarchical structure to a flatter organizational model: The organization moved away from a top-down structure with many layers of management to a more streamlined and decentralized model, promoting a more agile decision-making process - Empowered employees and reduced layers of management: Employees were given more autonomy and authority to make decisions, while the number of management layers was reduced, leading to more direct communication and faster decision-making - Formed cross-functional teams to promote collaboration and end-to-end product development: Teams were composed of members from different functional areas, fostering collaboration, knowledge-sharing, and ensuring a holistic approach to product development and delivery - Encouraged a culture of teamwork and knowledge-sharing across departments: The organization emphasized the importance of teamwork and created opportunities for employees to share their expertise and learn from one another, breaking down silos and promoting a culture of collaboration - Iterative and Incremental Work: Agile methodologies introduced a shift from traditional waterfall project management to iterative and incremental work cycles Projects were divided into smaller, manageable tasks or sprints, allowing for faster delivery of value to customers This iterative approach enabled teams to receive continuous feedback, adapt to changing requirements, and make improvements along the way - Flexibility and Adaptability: The Agile transformation brought about a greater emphasis on flexibility and adaptability within the organization Teams were empowered to respond quickly to market changes, customer needs, and emerging opportunities This agility helped Raiffeisenbank stay competitive in a rapidly evolving financial industry B CASE ANALYSIS PROBLEMS AND CAUSES Problem: Fear from staff Analysis The problem occurs because of the following reasons: Breaking routine: People not want to give up their comfort zone and daily routine that provide predictability ● “At the time the transformation was launched, the bank had been abiding by the values of "comfortable entrepreneurship" and servant leadership for several years” ● "It was difficult for them to part with the idea that IT is some kind of independent organization” ● “The CIO of Raiffeisenbank, Andrey Popov found himself in charge of the employees who did not see themselves in the new roles” Direct costs: People tend to block actions that result in higher direct costs or lower benefits than the existing situation, threatening their autonomy, job security, and career opportunities ● “Many departments were disbanded and their leaders lost their formal positions” ● “To assume the new role of a product owner, an employee had to defeat internal and external candidates in an open competition” ● “Some members of the IT community within the company had grown accustomed to their privileged status” Consequences ● Not everyone was happy about this, and people started to leave As a result, there was a serious shortage of product owners, tech leads, scrum masters, and especially, developers Problem: Talent gap Analysis Talent gap at Raiffeisen Bank was caused by: Capacity of some current staff is not suitable for the new business model ● The bank has been around for more than 120 years and operates on a traditional model instead of a digital bank, so the employees are recruited with the qualities of a large bank with separate physical operations and IT departments Therefore, some people cannot keep up with technological changes because of the lack of technological capacity Capable of adapting to digital transformation, but the training program is not suitable ● As mentioned in the case ” Just normal training is not enough to fully equip them in their new roles Only learning through books without practice will be ambiguous and awkward when encountering strange problems Consequences ● Inefficient execution: “people had agreed with the changes in words but in actions continued to operate in the old paradigm.” ● Staff’s dissatisfaction: employees are demotivated, dissatisfied, and low organizational commitment: Efforts but not seeing results make employees frustrated and lower expectations Problem: Complicated and lengthy decision making process Analysis Complicated and lengthy decision making process was caused by: ● As mentioned in the case, “Product owners were hesitant to act decisively after joining the teams in fear of losing valuable experts.” Disjointed collaboration in the team is the main cause of this Product owners lack confidence because they are novice with their new responsibilities and are ambiguous about how their teammates behave ● Autonomy increases in a team As mentioned in the case, “ Consequences This sometimes reduces productivity at work, especially in projects that need to take action quickly and decisively Problem: Silos in the organization Silos in the organization were caused by: Disunity and Low interest in common goal of company ● In the case of Raiffeisenbank, it appears that the LeSS team members have developed strong identification with their job and team, rather than the organization as a whole This may be due to the delegation of voice rights being limited to the team level, rather than across the organization As a result, the team members feel more connected to their immediate colleagues and work, rather than the broader company Consequences ● The disunity and lack of shared interest in the company's goals created further challenges In an attempt to involve more individuals in the project, the board approached the mobile notifications team, equipped with the necessary skills, to assist their colleagues However, they encountered unexpected resistance, as other employees were reluctant to set aside their own tasks, which they deemed as important Consequently, each team remained focused on their specific products, with varying degrees of reluctance and understanding regarding the shared tasks at hand SOLUTION Problem 1: Fear from Staff Training: This is an important process in most change initiatives because employees need new knowledge and skills to fit the organization’s evolving requirements Training helps employees break old routines and adopt new role patterns There are some possible training processes that Raiffeisenbank can adopt such as Action learning or Coaching In reality, they used Coaching, to be specific, inviting external coaches to help the teams understand and accept these events and develop new skills or adapt their previous behavior patterns to benefit from the new system However, we see that they need to apply this Coaching method more thoroughly and seriously to convey clearly the overall objective of the organization and the reason why they have to change the way they operate because during this process, many employees still did not see how serious the transformation was Document continues below Discover more from: Trị Học Quản QTR69420 Trường Đại học… 742 documents Go to course Quản Trị Học - Giáo 184 Trình Quản Trị Học 100% (59) Phân tích thực trạng 23 hoạt động tuyển… Quản Trị Học 100% (18) Trắc nghiệm QTH 25 20 18 Quản Trị Học 100% (9) TÌNH HÌNH TUYỂN DỤNG CỦA Vingroup Quản Trị Học 100% (9) Đáp án 222 câu QUẢN TRỊ HỌC Quản Trị Học 100% (6) 18 222 câu trắc nghiệm Quản trị học có đáp… Quản Trị 93% (14) Học for better results Besides, they can also use Action learning simultaneously with Coaching Stress Management: Organizational change is a stressful experience for many people because it threatens self-esteem and creates uncertainty about the future Communication, learning, and employee involvement can reduce some of these stressors However, research indicates that companies also need to introduce stress management practices to help employees cope with the changes In particular, stress management minimizes resistance by removing some of the direct costs and fear of the unknown of the change process Stress also saps energy, so minimizing stress potentially increases employee motivation to support the change process Integrative Negotiation (Win-win solution): A form of influence that involves the promise of benefits or resources in exchange for the target person’s compliance with the influencer’s request This strategy potentially activates those who would otherwise lose out from the change However, it tends to merely gain compliance rather than commitment to the change effort, so it might not be effective in the long term Problem 2: Talent Gap ● Re-establish a new performance evaluation system & rebuild new recruiting & selecting system The redesign of the employee evaluation system helps to evaluate employee performance based on new criteria This makes the implementation of the strategy based on the new business model more accurate and rigorous Those who are qualified and have potential for development will be retained and invested in training and coaching, while those who have no potential will have to leave to make room for those with more potential for development This ensures efficient use of resources to produce good results ● Applying mentorship programs & sharing spaces The atmosphere at mentorship and sharing space is more relaxed and less formal than training and coaching sessions with experts, so employees can freely express their problems to colleagues like friends helping each other Moreover, having a mentoring program and sharing sessions in place keeps learning consistent, so everyone is always growing Problem 3: Complicated and lengthy decision making process ● Clarify expected goals for product owners The core idea is focusing on business outcomes, not the work The clearer the goal, the easier it is to avoid unnecessary discussions Besides, the pressure of time and output makes product owners gradually get used to prioritization to make the most precise decisions in the most limited time ● Empower product owners by fostering team collaboration and knowledge sharing The emotional connection in the team comes naturally, helping everyone understand each other's working styles, thoughts, personalities, and needs better This cohesion will help product owners communicate better with people in the team, avoiding misunderstandings Moreover, knowledge sharing helps equip professional knowledge to be more confident when entering a new team This will help build confidence and encourage taking action based on shared knowledge Problem 4: Silos in the organization ● Disunity and low interest in common goal of company +) From an organizational innovation and change perspective, there are several recommendations that Sergey Monin, the CEO of Raiffeisen Bank, could consider to address the issue of low interest in the overall development of the company by its employees To unite employees around a single objective and highlight the value of collaboration, Monin should experiment with team composition, titles, and performance measures +) Start an agile transformation of the company's culture, focusing on fostering a sense of purpose and values that are shared across various product sectors III ACTION PLAN Problem 1: Fear from Staff Training: 1) Understand the participants/employees (using surveys, observation, meetings, etc): Employees who resist to change often belong to the following groups: ● Employees who are highly invested in the current way of doing work ● People who created the current way of doing work that will be changed ● Employees who expect more work as a result of the change ● Those who advocated a particular alternative, (e.g., they wanted Option B, but Option A was selected) ● People who have been very successful and rewarded in the current way of doing work 2) Conduct appropriate training session for each group of employees above For example, for those who are in the 1st group, what they need to know can be how digital transformation outperforms the traditional way of working and how it benefits them; for those who are in the 2nd group, what they need to know can be how they can adapt their previous behavior patterns to benefit from the new system, etc 3) Collect feedbacks after training to give employees the opportunity to share their thoughts and solicit their suggestions as their engagement in the design and implementation of the change Expected outcomes: 1) The rationale, the goals, and the steps of the change initiative are clearly and consistently communicated 2) Employees understand the purpose, the benefits, or the process of the change 3) Ensure employees feel valued, respected, and be part of the solution, rather than victims or obstacles of the change Stress Management: 1) Understand the employees (using surveys, observation, meetings, etc), find out their sources of stress 2) Ensure availability of mental health resources: ● Create a mental health resource center onsite ● Ensure that employees have confidential access to mental health services ● Foster a culture that does not stigmatize mental health ● Include mental health awareness in the onboarding process 3) Create a supportive work environment Expected outcomes: 1) Minimize the level of employees’ fear, anxiety, anger or sadness 2) Ensure employees be more engaged in their work and focused on their responsibilities 3) Increase work productivity Integrative Negotiation: 1) Prepare where, when, with whom, and under what time constraints the negotiations will take place 2) Exchange information: Employees should be allowed to share their underlying interests and concerns uninterrupted, including what they aim to receive at the end of the negotiation and why they feel the way they 3) Clarify: If employees disagree with something the organization/department representatives are saying, the two sides should discuss that disagreement in calm terms (active listening and calm feedback; controlled body language) to reach a point of understanding 4) Conclude and implement: Once an acceptable solution has been agreed upon, both sides should thank each other for the discussion, then they should outline the expectations of each party and ensure that the compromise will be implemented effectively with written contracts and follow-up supervision Expected outcomes: 1) Common interests and creative solutions that maximize value for all parties involved are identified 2) Reduce employees’ turnover rate Problem 2: Talent Gap The employee's capacity is not suitable for the new business model 1) Identify new values and qualities that bank employees need based on the new business model, emphasizing the "tech-savvy" factor 2) Evaluate the company's staff capacity based on the new evaluation system (KPI, test, performance review, ) 3) 4) Transfer or terminate contracts with unsuitable people Identify missing positions, rebuild new recruiting & selecting systems based on the new business model, identify targeted candidates’ profile to reach them at conferences, events, conferences, fairs, and on social networks Expected outcomes: 1) All employees in the company are placed in the right position, the job is suitable for their capacity 2) 100% of new positions are filled with talented candidates who match the new business model Capable of adapting to digital transformation, but the training program is not suitable 1) Send a survey to employees about the problems they face, the skills they have difficulty with and want to improve 2) 3) Connect employees based on skills they want to learn or how they want to grow Matching employees to their mentors and buddies based on competencies can ensure everyone is developing in a way that aligns with their personal and professional needs Expected outcomes: ● All staff adapt well to the process and product teams ● Learning culture is fostered ● Employees grow to their highest potential Problem 3: Complicated and lengthy decision making process Clarify expected goals for product owners - Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for product owners Empower product owners by fostering team collaboration and knowledge sharing - Establish support structures: Create mentorship or coaching programs to support new product - Foster collaboration and knowledge sharing: Facilitate regular forums, such as cross-team owners in overcoming challenges and building effective teams meetings or communities of practice, where product owners can exchange ideas, and learn from each other - Organize team trips/small outings after each completed phase of the project, where everyone honestly shares their working experience, feedbacks to each other to better understand each other Expected outcomes: 1) Increase in confidence and competence of product owners 2) Improvement in decision-making and faster action 3) Increased alignment and collaboration among teams Problem 4: Silos in the organization ● Disunity and low interest in common goal of company Change Team Composition, titles - Applying Agile concepts such as: transparency, continuous improvement, and customer focus that can support an innovative and adaptable culture - Creating a cross-functional team to be in charge of determining and prioritizing the company's overall development requirements, such as the need for a fundamental IT infrastructure Representatives from various product categories, as well as from IT and other support departments, should be on this team - Set up schemes that encourage employee participation in decision-making and encouragement of cross-functional collaboration are two ways to this Expected outcomes: 1) The general interests of the company are served by including personnel from various departments 2) Each employee have chances to contribute to general ideas 1) - Performance Measures Monin could introduce incentives that encourage employees to take a more holistic view of the company's needs - Implementing performance metrics could be linked to the achievement of overall company goals, rather than just the performance of individual product areas This can help to shift the 10 focus away from narrow functional objectives and towards the broader interests of the organization - It's essential to align the metrics with the specific objectives and key results (OKRs) of the organization - Employee Performance Metrics + 360-degree feedback ratings: Measures employee performance based on feedback from peers, supervisors, and subordinates + Employee engagement score: Assesses the level of employee engagement and satisfaction within the organization Create a table of incentives A Creative idea from employee which works plus 50% month salary, provided at the end of well and brings benefits and customer the next month satisfaction An idea from a team which works well and an incentive= month salary of the PO, divided brings benefits and equally to all team members Participating supporting other teams to achieve 30% month salary bonus, provided at the end of common goal paralel to personal tasks the next month 2) Rebuild company culture system including fostering a sense of purpose and values that are shared across various product sectors Step 1: Define the company's purpose and values + Clearly articulate the organization's purpose and core values that align with its mission and long-term goals + Involve key stakeholders, including employees from different product sectors, in the process to ensure a sense of ownership and commitment Step 2: Communicate the purpose and values 11 + Develop a communication strategy to effectively share the company's purpose and values with all employees + Utilize various channels such as company-wide meetings, internal newsletters, intranet, and social media platforms to consistently reinforce and promote the purpose and values Step 3: Lead by example + Senior leaders and managers must embody the company's purpose and values in their actions and decision-making This will set the tone and influence others within the organization Step 4: Incorporate purpose and values into performance management: Integrate the company's purpose and values into performance evaluation systems, including goal-setting, performance reviews, and recognition programs Step 5: Foster cross-functional collaboration + Create opportunities for employees from different product sectors to collaborate and work together on projects or initiatives Step 6: Provide training and development + Provide resources and workshops to enhance employees' understanding of the company's purpose and values, as well as skills related to collaboration, communication, and ethical behavior Expected outcomes: 1) Increase motivation among employees, encourage them to look out of the silos 2) Bring people together around a common goal and emphasize the value of collaboration 12 C CONCLUSION To summarize, we have mentioned the problems above that RAIFFEISENBANK have to deal with Through applying theories from EIM modules, especially the module of Digital Transformation, we have come up with some possible solutions for RAIFFEISENBANK to manage and human in both short-term and long-term making sure that every step operates smoothly Emerging issues management plays an important role in every organization, employees are the assets of the company As a leader, Li has to make the right decision to have a successful transformation applied into the whole bank D REFERENCES Edmondson, A.C (2019) The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth Harvard Business Review Press Harvey, J-F., & Edmondson, A.C (2018) Cross-boundary teaming: A review and framework for future research Academy of Management Annals, 12(1), 125-151 Lee, J., & Choi, B (2021) Agile transformation of a Korean bank: A case study of the impact of agile culture and leadership on employees' job satisfaction and intention to stay Journal of Organizational Change Management, 34(1), 67-83 Schwaber, K., & Sutherland, J (2020) The Scrum Guide: The Definitive Guide to Scrum: The Rules of the Game Scrum.orgresources 13 More from: Quản Trị Học QTR69420 Trường Đại học… 742 documents Go to course 184 23 Quản Trị Học - Giáo Trình Quản Trị Học 100% (59) Phân tích thực trạng hoạt động tuyển dụn… Quản Trị Học 100% (18) Trắc nghiệm QTH 25 20 Quản Trị Học 100% (9) TÌNH HÌNH TUYỂN DỤNG CỦA Vingroup Quản Trị Học 100% (9) Recommended for you forces Gui SV - lll Quản Trị Học ANALYSIS OF 28 100% (1) VIETNAM'S… International trade policy 100% (4) Pdf-6-nt compress apan – Alcoholic… International trade policy 100% (1) Christian Dior Quản Trị Học 100% (1)