2015-05-20-奥纬咨询-Why_Bank_Transformations_Often_Fail_in_Emerging_Markets_16页_276kb

Financial Services: Why Bank Transformations Often Fail in Emerging Markets

This paper analyzes the frequent failure of bank transformation projects in emerging markets, presenting ten common mistakes and lessons for boards.

Core Issues & Failures

1. Ambitious Goals vs. Execution Gap: Transformations aim high but often suffer from poor execution and insufficient focus on people. (Failure Drivers: Overly broad scope, lack of management dedication, insufficient resources).
2. Common Mistakes: Too much planning, lack of execution focus, ignoring errors, expecting overnight change without sustained commitment. (No "silver bullets").
3. 10 Pitfalls Detailed: Errors span leader selection, executive overload, performance management, employee motivation, project prioritization, board alignment, cross-functional coordination, testing, technology dependency, and selecting appropriate quick wins.

Key Takeaways for Boards

• Identify potential candidates for transformation (banks with negative net income CAGR, ROAE CAGR).
• Recognize that these projects are resource-heavy bets-the-bank initiatives.
• Avoid common pitfalls ([#1-#10] outlined) to reduce timelines, improve motivation and outcomes.

Conclusion

Success hinges on avoiding execution errors, especially in resource allocation, performance management, board alignment, and project prioritization. It requires sustained commitment, proper staffing, clear incentives, agile planning, and realistic implementation.

Oliver Wyman: Global leader in management consulting; extensive experience (~50 programs) advising on bank transformations in emerging markets.