# Addressing the human aspects of business transformation
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-01-28
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Navigating Financial Services Transformation: Lessons from
Meta Description: Discover the challenges and leadership lessons from industry experts on navigating complex change projects during the pandemic.
URL: https://financedigest.com/addressing-the-human-aspects-of-business-transformationhtml

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_By **Sundara Sukavanam,** CDO,_ [_Firstsource_](https://www.firstsource.com/leading-transformation/)

While the financial services industry is no stranger to business transformation, the pandemic forced businesses to expedite the pace of change. Eli Rosner, Chief Product and Technology Officer at Finastra [said](https://www.fintechmagazine.com/financial-services-finserv/digital-transformation-accelerating-change-fintech): “ _It feels like the fast forward button has been pressed. I think it was burgeoning even before COVID-19 hit us, but the pandemic has just taken it to a whole new level; it’s forced everybody to think differently about their business.”_

Deloitte has identified [four areas](https://www2.deloitte.com/global/en/pages/financial-services/covid-19/realizing-the-digital-promise-covid-19-catalyzes-and-accelerates-transformation.html/) of transformation triggered by COVID, including wider adoption of digital services and online engagement with customer service teams. Many of these changes were long overdue given an increasingly tech-savvy consumer base. However, even when change is necessary, [transformation is never a straightforward process](https://www.financedigest.com/automating-business-processes-is-essential-to-digital-transformation.html "Automating business processes is essential to digital transformation"). Recent research from [Firstsource](https://www.firstsource.com/leading-transformation/) found that 81% of financial services executives rated transformation programmes as stressful or incredibly stressful.

To help financial services leaders navigate complex change projects, Firstsource research revealed [five Leadership Lessons](https://www.firstsource.com/leading-transformation/) to ensure that change initiatives are more likely to succeed.

**Tempering over-optimism by having a success-range**

Projected benefits and costs of [change programmes](https://www.financedigest.com/ubs-makes-changes-to-buyback-programme-following-credit-suisse-takeover.html "UBS makes changes to buyback programme following Credit Suisse takeover") are always impacted by some unknown unknowns. The [pandemic has exploded many new challenges out of the water](https://www.financedigest.com/listen-care-share-ofwats-latest-report-on-the-water-industrys-handling-of-customers-during-the-pandemic.html "Listen, Care, Share: Ofwat’s latest report on the water industry’s handling of customers during the pandemic"), and one thing is sure, more unknowns lie ahead.

It is no longer about having one well-defined success criteria, [business cases](https://www.financedigest.com/building-a-business-case-for-integrated-payments.html "Building a Business Case for Integrated Payments") need an upper-bound and a lower-bound success range. Factoring in various case scenarios e.g. from 40% to 70% efficiency improvement, will [allow project leaders](https://www.financedigest.com/allowing-yourself-time-to-grow-as-a-leader-consciously-will-enable-you-to-support-your-team-authentically.html "Allowing yourself time to grow as a leader, consciously, will enable you to support your team authentically") to navigate and pivot within that ‘success band’. In truth, the project is likely to fall somewhere in-between but seeing outcomes as a [scale will mean there is an agreement from the outset that there needs](https://www.financedigest.com/scams-have-eroded-digital-trust-banks-need-to-do-more-to-combat-the-industrial-scale-of-scams-in-the-uk.html "Scams have eroded Digital Trust – Banks need to do more to combat the industrial scale of scams in the UK.") to be room for manoeuvre to hit that upper band.

**Fully assessing the impact** Transformation projects are never self-contained, they affect the whole organisation impacting systems, processes and even company culture. However, many leaders are failing to [plan for the knock-on effects](https://www.financedigest.com/break-in-case-of-emergency-plan-early-plan-now-for-effective-crisis-comms.html "Break in case of emergency – plan early, plan now, for effective crisis comms") of these projects. A COO involved in the study said: “I find that most proposals haven’t considered the implications for adjacent [systems and processes](https://www.financedigest.com/global-tissue-processing-system-market-report.html "Global Tissue Processing System Market Report"). Then you [end up with project overruns and you’re into more money](https://www.financedigest.com/with-the-end-of-easy-money-there-are-still-serious-opportunities-in-africa.html "With the end of ‘easy money’ there are still serious opportunities in Africa") than you’d originally planned. I kicked proposals back for that, more than any other reason”.

The [research demonstrated a lack of established wisdom when it comes to how to best assess the impact](https://www.financedigest.com/impact-com-named-a-market-leader-in-research-in-actions-partner-management-automation-report-and-in-g2-winter-reports.html "impact.com Named a Market Leader in Research in Action’s Partner Management Automation Report and in G2 Winter Reports") of a change project. However, many leaders wished they had taken the time to consult [senior executives](https://www.financedigest.com/musk-warns-of-twitter-bankruptcy-as-more-senior-executives-quit.html "Musk warns of Twitter bankruptcy as more senior executives quit") across the businesses and noted where they seem apprehensive. Another key regret was not considering the overall ‘quantity’ of change and how this would [impact particular groups within the business](https://www.financedigest.com/how-technology-consultants-impact-business-growth.html "How Technology Consultants Impact Business Growth"). These are important learnings for [finance leaders](https://www.financedigest.com/now-is-the-time-for-finance-leaders-to-take-on-a-more-strategic-and-valuable-role.html "Now is the time for finance leaders to take on a more strategic and valuable role") looking to drive transformation.

**Ensure dissenting opinions are heard**

It is [human nature to amplify the opinions that support our own and disregard dissenting data](https://www.financedigest.com/crowdsourcing-of-data-to-drive-the-human-parainfluenza-viruses-diagnostics-market.html "Crowdsourcing of data to drive the Human Parainfluenza Viruses Diagnostics Market"). However, this approach is detrimental to [leading a successful change](https://www.financedigest.com/how-to-lead-organizational-change.html "How to Lead Organizational Change") project. To optimise the chances of success, [leaders need to actively search out dissenting opinions – this is the only way to ensure that the business](https://www.financedigest.com/business-leaders-flexibility-for-everyone-contributes-to-gender-equality-in-the-workplace-without-affecting-your-bottom-line.html "Business leaders: flexibility for everyone contributes to gender equality in the workplace, without affecting your bottom line") case has been robustly tested from all angles. In the Firstsource study 43% of initiatives [rated successful](https://www.financedigest.com/boosting-checkout-conversion-rates-tips-for-businesses-chasing-e-commerce-success.html "Boosting checkout conversion rates: tips for businesses chasing e-commerce success") had considered dissenting opinions, compared with only 13% of less successful ones.

Setting up steering groups that include naysayers is a useful way to surface a wide range of opinions. One CFO said: “ _Try to have a steering group that involves people who are pro and anti – both sides of the story. It means you bring them into the fold so you’re closer to what their concerns are, but also [gives them an opportunity to feel that they’re part of the process](https://www.financedigest.com/how-process-automation-increases-productivity-in-the-insurance-sector-while-giving-employees-room-for-more-high-value-activity.html "How Process Automation increases productivity in the insurance sector while giving employees room for more high value activity"). That’s important”_.

**Choosing suppliers who can put some skin in the game**

To run an effective change programme suppliers should be embedded into the process.  As one [Digital Director noted:](https://www.financedigest.com/the-dental-x-ray-systems-market-to-replenish-on-a-digital-note.html "The Dental X Ray Systems Market to replenish on a digital note") “In an ideal world you can’t tell who is a supplier and who is an employee, everyone is working together to get the right outcome”. External stakeholders such as consultants and outsourcers should be included in steering groups and have a unified structure in place for project governance.

The Firstsource [study found that senior executives are largely comfortable when it comes](https://www.financedigest.com/veterinary-tables-market-rise-to-meet-large-demand-in-coming-years-fact-mr-study.html "Veterinary Tables Market Rise To Meet Large Demand In Coming Years, Fact.MR Study") to managing suppliers. However they noted two key areas that need to be improved. The first is evaluating suppliers for cultural fit before commencing a transformation project. The second point is the [importance of creating an informal](https://www.financedigest.com/the-importance-of-information-security-in-a-post-pandemic-hybrid-working-world.html "The importance of information security in a post-pandemic hybrid working world") avenue for frank conversations at senior level; this is critical for pre-empting and troubleshooting issues before a project is derailed.

**Managing the emotional marathon**

In any large change project, there will be emotional highs and lows. You hope for a series of [big wins](https://www.financedigest.com/european-telcos-set-to-win-fight-with-big-tech-could-set-global-agenda.html "European telcos set to win fight with Big Tech, could set global agenda"), as new capabilities go live and results come through. But inevitably there will be some legitimate low points. Managing his emotional rollercoaster is hard; 70% of financial [services providers](https://www.financedigest.com/can-companies-minimise-their-dependency-on-cloud-service-providers.html "Can companies minimise their dependency on cloud service providers?") rated it as ‘difficult’ or ‘very difficult’. As one CFO put it: _“You can become over-focused on a programme. You actually live and breathe the whole thing yourself. When it’s going badly, you’re going badly, and when it’s going well, you’re going well. You take on the personality of the stage of the programme you’re in. And that makes it very, very tough.”_

The research showed that the most common approaches to managing the emotional marathon all relate to nurturing a [positive culture](https://www.financedigest.com/creating-a-positive-and-productive-culture-within-the-workplace.html "Creating a Positive and Productive Culture Within the Workplace"). An easy fix is committing to celebrating individual or team wins; this was an initiative that 64% of respondents [put in place to better manage](https://www.financedigest.com/unstoppable-esg-momentum-puts-investment-manager-reporting-in-the-spotlight.html "Unstoppable ESG momentum puts investment manager reporting in the spotlight") the emotional marathon. Other measures included [learning from mistakes while avoiding a blame culture](https://www.financedigest.com/promoting-a-learning-culture-in-the-workplace.html "Promoting a learning culture in the workplace") and taking an empathic approach when things inevitably go wrong.

**Leadership Lessons for Transformation**

The financial [services sector](https://www.financedigest.com/the-state-of-cybersecurity-in-todays-financial-services-sector.html "The state of cybersecurity in today’s financial services sector") is defined by fast-paced change and this should be seen as a huge positive. Taking an agile approach, and flexing to fit [customer needs](https://www.financedigest.com/you-dont-need-magic-to-anticipate-your-customers-needs-just-the-right-tech.html "You don’t need magic to anticipate your customers’ needs, just the right tech"), results in a more robust sector that better serves the needs of end consumers. However, [delivering transformation projects](https://www.financedigest.com/trend-micro-cloud-one-delivers-projected-roi-of-up-to-188.html "Trend Micro Cloud One Delivers Projected ROI of Up to 188%") is a complex, high pressure endeavour. But, as our research demonstrates, there are common mistakes that can be identified and preempted to make the process smoother and more efficient. By factoring our [Leadership Lessons](https://www.firstsource.com/leading-transformation/) into the planning process, transformation leads will be better placed to deliver successful outcomes while managing the human impact on delivery teams.


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