Česká spořitelna journey to the Future Bank
Česká spořitelna is member of Erste Group
Introduction
Why What How Closing
Who are we?
are we changing?
we changed?
we changed?
By pass-book introduction, saving
cooperatives allowed masses to save and enjoy the interest on deposits
Supported Czech towns and also Czech society in their development
(Rudolfinum, Spořilov)
For last almost 200 years we followed our purpose and became irreplaceable part of Czech Republic
By lending to entrepreneurs CS´s
helped them grow or set up their businesses and
prosper Built our clients´
trust by physical presence at every
town´s square, usually prime location right next to
town hall
Helped building trust in ČS
“Leading clients to prosperity”
1825 2019
Introduction Why
What How Closing
Who are we?
are we changing?
we changed?
we changed?
Future Bank – Case for Change
In order to deliver on our Statement of Purpose to lead people and business in the Czech Republic to prosperity in a rapidly changing market, we need to change the way we work and organize ourselves.
We believe that significant change in the our attitudes toward customers in ČSAS demands we do more than incremental improvements in the way we work. We need to do something different. Change must deeply influence our corporate culture and touch the operating model and organization structure.
That’s what we call Future bank
Traditional hierarchical set up doesn't support collaboration
and creates several hand-overs
Companies applying Agile at Scale potentially reach significant benefits
1 Gartner Research Circle Agile in the Enterprise 2017 survey, 185 respondents 2 McKinsey & Company research
~30% cost reduction across HQ and support
functions2 What we learnt in reference visits
Market research shows that increasing number of institutions successfully deploy Agile at Scale to capture significant benefits
~50% improvement in customer satisfaction (Net
Promoter Score)2
People satisfaction Significant increase in employee engagement and employee branding2
~40% time to market reduction2, 33%of organizations deploy every 3 weeks or less1
▪ Top management commitment is key
▪ No compromises should be made in people selection
▪ Shiftingmindsets and culture is at the core of unlocking full value of people
▪ Agile methodology needs to be tailored to the situation of every bank
▪ Agile helps market leaders with large branch network leap into digitaland defeat small attackers
“All silos were liquidated; everyone thinks of value for the client now. And we really create value for the client working in common – Business and IT“
– Chapter Lead
Agile is becoming mainstream – surveyed organizations used Agile for
45% of development in 2017, up from 33% in 20151
High success rate 77% of respondents feel Agile has been a success
in their company1
Introduction Why
What
How Closing
Who are we?
are we changing?
we changed?
we changed?
Agile organization
Is an organizations which are quick in responding to changes in the marketplace or environment. The agile organization is focused on its customer's needs which call for customized rather than
standardized offerings.
Agile organization
„It doesn’t matter how good you are today;
if you’re not better next month, you’re no longer agile.“
Mike Cohn
Agile trainer and author
Agile manifesto
Individuals and interactions
over processes and tools
Working software
over comprehensive documentation
Customer collaboration
over contract negotiation
Responding to change
over following a plan
12 Agile principles
Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.
01
Welcome changingrequirements, even late in development. Agile processes harness change for the
customer’s competitive advantage.
02
Deliver working softwarefrequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.
03
Business people and developers must work together daily
throughout the project.
04
Build projects around motivatedindividuals. Give them the environment and support they need, and trust them to get the job done.
05
The most efficient and effectivemethod of conveying information to and within a development team is face-to-face
conversation.
06
Working software is the primary measure of progress.
07
Agile processes promotesustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely
08
Continuous attention to technicalexcellence and good design enhances agility.
09
Simplicity - the art of maximizing the amount of work not done - is essential.
10
The best architectures,requirements, and designs emerge from self-organizing teams.
11
At regular intervals, the teamreflects on how to become more effective, then tunes and adjusts its behavior accordingly.
12
Future Bank key design principles
Description
Within the tribes, “squads” of up to 10 people work autonomously to fulfill their end-to-end parts of the tribe’s purpose. Members of squads are co-located and 100% dedicatedto the work of their squad
Squads work according to methods and ceremonies with the aim to maximize tangible outputs in short cycles(weeks rather than months)
Future Bank will emphasize a flat organization with only 2 managerial layersfor the HQ The organizational design of Future Bank isnever finished, it evolves continuously and it is a lively organism
Future Bank is an organization-wide transformation covering run and change activities across all functions (incl. business, IT, operations, support, sales)
In Delivery organization, cross-functional teams will be organized in “Tribes” with clear purpose based on customer needs and end-to-end responsibility to minimize hand overs
We will keep proper internal control systems during and after the transformation Principles
Team autonomy 3
Fast time-to-market 4
Flat organization 5
Continuous improvement 6
Organization-wide transformation 1
Cross-functional delivery
2
Internal control system
7
Introduction Why
What How Closing
Who are we?
are we changing?
we changed?
we changed?
Key building blocks of Delivery organization
Chapter
Chapter Tribe lead
Agile coach
Squad Squad
Squad Squad
B
E
A
C D
F
F Tribe
A D Product Owner
▪ Prioritizes activities of squad
▪ Maintains backlog and to-do list of squad
▪ Does not give orders and is not a classical manager
B E Agile Coach
▪ Builds high performing teams
▪ Individual and team coaching
▪ Flags impediments at team and system level
C F Chapter Lead
▪ Develops people
▪ Coordinates performance evaluation
▪ Sets agenda for meetings Roles
Tribe (business unit)
▪ Collection of squads organized around the same purpose/mission
▪ Typically no more than 150 people in one tribe
▪ Head of tribe coordinates between squads
▪ Example: Housing
Squad (business/customer team)
▪ An autonomous multidisciplinary team of ~10 people able to define work and make business decisions
▪ Has E2E-responsibility for a certain mission related to client, e.g., mortgage application squad
Chapter (know-how groups)
▪ Group of functional specialists (~5-10 people) responsible for building expertise and maintaining a common approach to similar tasks (e.g. front-end developers, marketing experts, etc.)
Structure
