1. The culture needs to change
Command-and-control leadership → Empowered cross-functional teams
Most major banks lack the right organizational culture to reap the benefits of modern technology and facilitate change. That’s a major reason why their multi-year cloud-adoption programs fall short.
Financial services firms operate in an environment that can hinder cloud optimization: strict controls, traditional processes, cautious decision makers, top-down leaders, harsh penalties and complicated legacy systems.
Rakesh Nagar, senior director of technology at Publicis Sapient, said organizations with similar spend and similar talent, but different organizational cultures, have vastly different cloud outcomes.
“You’re seeing that some banks are more successful than others because they're really able to build pretty much a different organizational structure within their own firm that’s basically leading the cloud initiative,” Nagar said. “If they work with a rigid structure, there is so much red tape and friction that they just can't move fast.”
A diverse, multi-functional federated workforce – in which authority is dispersed rather than hierarchical – empowers teams to act quickly and iterate concepts and solutions until they shine. A key benefit of cloud is making experimentation (and even small failures) safer and inexpensive.