The accelerating pace of digital transformation in the financial sector has fundamentally altered the landscape of risks faced by banks. Operational disruptions caused by cyberattacks, technology failures, or third-party dependencies have the potential to trigger systemic crises across the interconnected financial system. In response to these evolving threats, the European Union's Digital Operational Resilience Act (DORA) represents a watershed moment, establishing a harmonized framework to enhance the sector's ability to withstand and recover from digital disruptions. For supervisory board members of banks, DORA signifies a call to action, demanding a renewed focus on digital operational resilience and a comprehensive oversight approach.

DORA goes beyond existing cybersecurity regulations by mandating in-depth ICT (Information and Communication Technology) risk management across the entire financial ecosystem. Supervisory boards hold the primary responsibility for ensuring their institutions are adequately prepared for the challenges posed by DORA. This entails a profound understanding of the regulation's core principles, a strategic recalibration of risk management approaches, and a commitment to fostering a culture of resilience across all organizational levels.

One of the most critical functions of supervisory boards in the wake of DORA is the implementation of a robust ICT risk management framework. Board members must not only approve ICT-related policies and procedures but also actively monitor their effectiveness. This requires a shift in mindset, recognizing that ICT risk is not a purely technical issue but a fundamental business risk. Boards need to ensure a holistic view of the institution's digital footprint, mapping critical business functions and identifying potential vulnerabilities stemming from internal systems, external dependencies, and the ever-evolving threat landscape.

When seeking to understand the key reasons for the failure of strategy implementations, one can pinpoint recurring themes such as ‚inability to manage change,' 'conflicts with established power structures,' 'encountering cultural resistance,' and 'ineffective communication.' Consequently, achieving success in your business transformation efforts greatly relies on your ability to comprehend and navigate the individuals and dynamics you will encounter.

Let's examine a specific component: strategy meetings. Strategy meetings play a crucial role in helping organizations achieve their objectives and propel their implementation efforts forward. However, these meetings can sometimes encounter disruptions in the form of Zebras, Wolfs, Hippos, and Rhinos - colorful metaphors for challenging personalities that can negatively impact the decision-making process.

Let’s have a look at the characters first: 

The ZEBRAs “Zero Evidence But Really Arrogant”

Zebras, often hailed for their confidence, can unwittingly sabotage strategy meetings. Their penchant for asserting opinions without factual evidence can derail discussions and lead to decisions grounded in subjective views rather than objective data. Their arrogance may stifle alternative viewpoints, creating an echo chamber of ideas.

The WOLFs “Works on Latest Fire”

Wolfs thrive on tackling the latest fires, often at the expense of long-term strategic discussions. Their ability to focus on immediate concerns can divert the meeting's attention and impede progress toward long-term goals.

The Hippo “Highest Paid Person's Opinion”

Hippos, often revered due to their position, can unintentionally cast a shadow over other voices in strategy meetings. Their opinions, given undue weight, might suppress diverse perspectives and discourage open dialogue.

The Rhino “Really Here In Name Only”

Rhinos, while physically present, may lack active engagement, leading to unproductive meetings. Their passive presence can hinder meaningful discussions and lead to missed insights. 

It is not about getting rid of the wild animals - it is about taming them

While Zebras, Wolfs, Hippos, and Rhinos are wild animals they also come with benefits. A Zebra may have innovative ideas and a diverse perspective that stimulates the strategic discussion. The wolf is able to address urgent matters swiftly and effectively and has skills in crisis management and quick problem-solving which can be valuable in certain strategic situations. And a hippo can bring to the table their ability to provide strategic direction, guidance, and decision-making based on their experience, expertise, and authority within the organization. And the main benefit of a rhino is their potential for passive observation and awareness. Their presence allows them to absorb information, gain insights into ongoing discussions, and stay informed about the organization's direction and decisions.

The influence of Zebras, Wolfs, Hippos, and Rhinos can undermine the efficacy of these meetings, leading to suboptimal outcomes. However, by adopting counter measurements, organizations can navigate these challenges successfully. That raises the question, how to tame them best.

Facts & figures are king to tame zebras 

The best way to encounter zebras is by encouraging a data-driven approach, where opinions are backed by solid evidence. It is recommended to gently challenge Zebras to present substantiated facts supporting their claims. Or you can provide alternative viewpoints supported by data, showcasing the importance of a balanced discussion to tame Zebras. And it is helpful to lead by example by presenting your own arguments with well-researched facts and figures.

Allocate time, delegate responsibility, align with strategy and balance the discussion when dealing with wolfs

To tame wolfs it is recommended to allocate specific time slots for addressing urgent matters in order to maintain a balance between short-term and long-term discussions. And you can assign someone to handle immediate issues outside the meeting and provide a summary during discussions. A further measurement to tame wolfs is to emphasize how addressing urgent matters aligns with the organization's overarching strategy. It is also recommended to strive for equilibrium between addressing immediate concerns and discussing long-term objectives.

Foster an inclusive culture, emphasize data, ask for equal input and challenge hippos respectfully

It is important when dealing with hippos to foster an inclusive culture where all participants feel valued and encouraged to share their insights. You also should encourage data-backed opinions, demonstrating the importance of evidence in decision-making. A proven method to tame hippos is to create opportunities for input from all team members to ensure a comprehensive view of the situation.  It is also helpful to politely challenge hippos' opinions and present alternative viewpoints supported by data.

Set clear expectations, create opportunities for input, assign follow-up tasks and establish feedback loops to awakening rhinos participation

A measurement to encourage rhinos participation is to communicate the purpose and role of all participants to set clear expectations. You may designate specific moments for Rhinos to share insights or ask questions during discussions. It is recommended to assign follow-up tasks related to meeting discussions to encourage engagement beyond the meeting. You may also gather feedback from Rhinos to make improvements and enhance their participation.

A structured agenda, a facilitator role, data-driven culture, diverse participation and an inclusive environment are overarching strategies to make best out of your strategy meetings

To effectively manage all types of participants consider implementing the following overarching strategies:

1.     Have a well-structured meeting agenda that includes dedicated time for urgent matters, strategic discussions, and input from all team members.

2.     Assign a skilled facilitator to guide discussions, manage contributions, and ensure everyone's voice is heard.

3.     Cultivate a culture of evidence-based decision-making where opinions are supported by data and facts.

4.     Invite a diverse group of participants to ensure a variety of perspectives and insights are considered.

5.     Create a safe and inclusive environment where all participants feel comfortable sharing their thoughts, regardless of their rank or role.

By proactively addressing the challenges posed by Zebras, Wolfs, Hippos, and Rhinos, you can promote effective, balanced, and productive strategy meetings that lead to well-informed decisions and successful outcomes.

1 Attract the right talent

Banks undergoing transformation require new skill sets and competencies, which do not exist to the needed extend within the current workforce. For banks it is paramount to first identify the needed IT & digital skills and then to attract the right talent. These skills include technical skills like software engineering, data science, cloud computing, cybersecurity as well as business acumen. IT & digital talent must also understand the business side of banking. A deep knowledge of products, processes and services, customer behavior, market trends, and regulatory compliance is required. A bank should also look for digital management skills like agile development when hiring. 

Founded in 1920 the Egyptian bank Banque Misr serves more than 13 million clients in Egypt and has more than 20,000 employees. Banque Misr started a digital transformation in 2017 to improve customer experience and expand its market share. The bank invested in recruiting top talent in the areas of digital. According to a KPMG report Banque Misr has seen significant growth in its digital banking operations since the implementation of its digital transformation strategy, with online and mobile banking transactions increasing by over 100% in 2020, alone.

Largely government owned Bank Rakyat Indonesia is one the largest banks in Indonesia with about 30 million retail clients, more than 100,000 employees and 4,000 branches. The bank transformed its business towards a more agile and collaborative work culture. Talent acquisition strategy involved hiring employees with experience in agile methodologies and digital transformation to drive the bank's transformation. Bank Rakyat Indonesia's agile transformation resulted in an increase in productivity by 20% and a decrease in project delivery time by 40%. The bank also launched new digital products, such as its mobile banking app, to better serve its customers.

2 Training & development never stops

Besides hiring new talent training & development programs can help bridge the gap by providing employees with the skills and knowledge they need to succeed in their roles.

IT & digital talent must develop its leadership & communication skills. This includes the ability to communicate complex technical concepts to non-technical stakeholders, collaborate with cross-functional teams, and lead change management initiatives. With the pace of technological change accelerating, IT & digital talent in the banking industry need to constantly upskill and reskill themselves to keep up. And banks need support the continuous learning needs by providing access to training and development opportunities via workshops, conferences, online courses and university & business school co-operations.

Fidelity Bank is a universal bank in Ghana that operates across 73 Branches and 115 ATMs across the countrywith more than 2,000 employees. As part of the bank’s digitization expansion, the Fidelity Bank has opened four digital-bank branches with e-lounges at Osu, KNUST (Kwame Nkrumah University of Science and Technology), Labone and East Legon. In 2019 the bank implemented a transformational change program known as the 'Project Leapfrog' to enhance operational efficiency, customer service delivery, and market position. As part of the program, the bank implemented several initiatives to improve employee skills, knowledge, and competencies, including training and development programs. And two years later, in 2021, the bank launched the Fidelity Banking Academy, a new capacity-building program to provide regular, holistic training and competency upskilling for staff of the bank. The initiative, being implemented in partnership with the Chartered Institute of Bankers Ghana, would elevate standards in the Ghanaian banking industry with respect to technical skills, and essential non-technical skills such as management and interpersonal skills. Fidelity Bank Ghana reported a significant improvement in employee performance and productivity as a result of the Training & Development programs. The bank's staff retention rate improved from 75% in 2019 to 84% in 2020, indicating that employees were more satisfied and engaged with the bank's work environment. The bank also reported a 25% increase in customer deposits in 2020, indicating an improvement in customer service delivery.

3 Retain talent

During a bank's transformation, it is crucial to retain employees who possess the necessary expertise to drive the change. Retaining talent ensures that the bank can continue to tap into the knowledge and experience of its existing workforce and avoid any loss of institutional knowledge. Flexibility, work-life balance and clear career paths help.

Access Bank Botswana (former: BancABC Botswana) transformed from a small regional bank to a leading financial institution and the fifth largest bank in Botswana. Talent retention played a crucial role in Access Bank's transformation as the bank focused on creating a culture of learning, growth, and development for its employees. A tangible achievement is the decrease of the staff turnover rate from 19% in 2018 to 9% in 2020. And Access Bank was named the Best Bank to Work for in Botswana by the African Business Magazine in 2020.

The Nigerian bank Guaranty Trust Holding Company PLC also known as GTCO PLC is a multinational financial services group, that offers retail and investment banking, pension management, asset management and payments services and is headquartered in Victoria Island, Lagos. The bank serves over 24 million customers across 10 African countries and has more than 10,000 employees. GTCO PLC developed a culture of continuous learning which aimed to improve the capabilities of its workforce and to develop future leaders. These programs were designed to provide employees with the necessary skills and knowledge to perform their roles effectively and meet the evolving needs of the organization. According to the GTCO PLC's 2020 annual report, the programs had a significant impact on the bank's performance, like the development of future leaders from within the organization, with 70% of management positions filled internally.

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Links / References

Access Bank Botswana, https://africanfinancials.com/document/bw-abc-2020-ar-00

Bank Rakyat Indonesia, https://bri.co.id/documents/20123/56786/AR%202021%20Bank%20BRI-ENG%20(2).pdf

Banque Misr, https://www.banquemisr.com/-/media/BM-ANNUAL-DIGITAL-REPORT-2019-2020-en.pdf

Fidelity Bank Ghana, https://newsghana.com.gh/fidelity-bank-launches-banking-academy

Guaranty Trust Holding, https://www.gtcoplc.com/uploads/annual-reports/2020-annual-report/2020-Annual-Report.pdf

worldometer, https://www.worldometers.info/world-population

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