Leadership and culture in an Agile Framework in a South African Financial Services Organisation

Abstract

ABSTRACT Banking in South Africa has changed over the last decade. This change resulted in how traditional banks operate and how they service their customers. Banks are under pressure to produce software products fast and use the agile methodology because they promised quick turnaround times. This study was initiated to establish the preferred leadership characteristics and culture to support self-directed teams to operate effectively using the Agile Framework. This study used a deductive approach. During the last ten years, Fintechs have taken advantage of a drop in the barrier to entry in the financial sector. Traditional banks were compelled to review their operating models in the face of increasing competition from Fintechs, who could roll out digitized products to market faster and cheaper than they could. The four traditional banks i.e. Standard Bank, Nedbank, First Rand and Absa have to find new ways to stay relevant in this competitive market. This means that they have to change their operating models, structures, and implementation methodologies to deliver products and services to customers. The traditional bank’s Information Technology departments were pressured to improve efficiency and speed. They simultaneously had to manage cost controls and capital expenditure. The traditional banks were obliged to review their Waterfall Methodology and introduced the Agile Framework. The Agile Framework enables organisations to speed up the delivery of technology products. The improved throughputs are due to improved intra and inter group dynamics. The experience at Standard Bank provides a good example. The Agile Framework is based on a common vision, team empowerment, and knowledge sharing. The implementation of the Agile Framework requires a complete leadership style change and cultural shift across all teams within organisations. In order to get the best out of followers in self-directed teams, effective leaders have to connect with people emotionally, culturally, and spiritually. Leaders therefore need to be transformational leaders in these self-directed teams who leads with the head and heart.

The findings of this study indicate that a Clan Culture in a team is the key to unlocking leadership to influence individuals in the team. A closer look at the findings of this study supports the link between leadership and culture in self-directed teams.