Leading on The Diagonal


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Deanna Oppenheimer shares her secret for leadership

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Leading on The Diagonal

  1. 1. Deanna Oppenheimer CEO, CameoWorks Photo by: http://www.archdaily.com/148680/torre-diagonal-zero-zero-emba 1
  2. 2. The old way of doing business is changing. Bank leaders should consider changing how they organize and Let’s talk about…retail banking changing how they organize and operate: … Leading on the Diagonal Why? 2
  3. 3. behaviorsour are changingbehaviorsour are changing 3
  4. 4. Communication shift: • Societal changes often lag technology changes • Now they are catching up Photo by: http://www.natcom.org 4
  5. 5. Digital everywhere Photo by: http://www.a-shci.blogspot.com 5
  6. 6. Innovation Cycles Compressed 1.5 Years iPad 2010 3.5 Years Facebook 2004 12 Years Google 1998 17 Years Internet 1993 27 Years Mobile 1983 38 Years Radio 1958 Time to Reach 50M Active Users Source: Bain and Company 201020041998199319831958 ?? Years Next generation? ? 7 Years Social media 10 Years Mobile banking 15 Years Online small business banking 20 Years Online consumer banking 26 Years ATM channel Time to Reach 70% Household Penetration 6
  7. 7. Digitalization driven disruption in Retail Banking Future: Digital advice, complex sales, customer engagement Digitalization Phase 2 Phase 3 Source: Bain and Company Past: Automation of cash handling, electronic payments and online transactions Present: Ubiquitous connectivity, mobile transactions, simple sales Time Phase 1 Phase 2 Current Frontier ILLUSTRATIVE ONLY 7
  8. 8. Banks must deliver a digitally enabled customer experience: • Through a true omni-channel model Bain has stated it correctly…… • Through a true omni-channel model • Enabled by technology • Funded through productivity • Delivered through the line ……And that is why we need: 8 Source: Bain and Company
  9. 9. Photo by: http://www.archdailey.com 9
  10. 10. Hierarchy is useful and necessary but… Photo by: http://www. nsi.bg 10
  11. 11. …informal networks Photo by: somerandomsequence lead to most strategic change
  12. 12. ExCo Geographies Products Functional Leaders Business Lines Channels The diagonal organization 12
  13. 13. Photo by: http://www. Dangerousintersection.org What does it look like internally? • Give diagonal groups real authority • Engagement from all members – a ‘get to’ mentality vs. a ‘have to’ mentality • Use a market based approach for innovation; think internal venture fund Photo by: http://www. yourbusiness.azcentral.com 13
  14. 14. Authentic communication that is targeted and consistent 14 Photo by: http://www. nex5tgenu.com • Information sharing and transparency • Authenticity means being willing to make yourself vulnerable
  15. 15. Photo by: http://www. yoga-balance.ca Relentlessly simplify: • Meeting structure • Accountability • Processes 15
  16. 16. Reduce extraneous metrics Economic value covered by metrics 16 Source: Bain and Company based on client experience
  17. 17. Expect the ‘Hat Trick’ You need at least three out of five (with the first being mandatory): • Improved the customer experience 17 experience • Save costs • Strengthen controls • Streamline operations • Increase revenue Everybody plays; sitting on the bench is not an option
  18. 18. What does it look like externally? Photo by: http://www. Dangerousintersection.orgPhoto by: http://www. bmg-3.com 18 • Source of innovation includes third parties; effective partnership with smaller companies is a key capability • Think diagonally with all stakeholders: regulators, unions, communities
  19. 19. Results: Strong employee engagement Net Promoter Score (NPSSM) = % Promoters - % Detractors How likely would you be to recommend your organization as a place to work to a friend or relative? *Net Promoter ScoreSM is a metric for employee engagement and measures Promoters (score 9-10 on question) and Detractors (0-6). It is the difference between the percentage of promoters and the percentage of detractors. Source: Bain decision and org effectiveness database 2013 (n=225) 19Source: Bain and Company
  20. 20. Results: Increased decision effectiveness drives the bottom line 5 YEAR REVENUE GROWTH 5 YEAR AVERAGE PROFITABILITY (ROIC) 5 YEAR TOTAL SHAREHOLDER RETURN Confidence level = 95% Confidence level = 96%Confidence level = 99% Note: High decision effectiveness range = top quintile of “decision effectiveness scores”; Low/Mid = all other; Growth 2001-2006 Source: Worldscope; Bain decision and organization effectiveness survey 20Source: Bain and Company
  21. 21. Re-capping the journey • Formal heirarchy • Unrecognized talent and ideas down in organization • Diagonal groups for strategic change • Cross functional working groups bring people from all levels Traditional Approach Diagonal Approach down in organization • Complex reporting • Top-down communication, lost messages • Too many meetings • Company does it all bring people from all levels • Simple metrics • Communication up, down, across the diagonal; short and sharp • Implement R.A.C.I (Responsible, Accountable, Consult, Inform) • Collaboration and partnerships 21
  22. 22. Acknowledgements All data provided by Bain & Company. For more on this topic see: • Decision Driven Organization http://www.bain.com/publications/articles/dec ision-driven-organization.aspx 22 ision-driven-organization.aspx Contact Info: • www.cameoworks.com • info@cameoworks.com • + 1-206-906-9536