Large-scale agile transformations: experiences in the South African banking industry

Abstract

The aim of this qualitative research study is to capture and derive meaning from the lived experiences of leaders implementing large-scale agile transformations in the SA banking industry. The study conducted was based on three research objectives, namely: 1) To explore the process of implementing large-scale agile transformations in the SA banking industry; 2) To explore the challenges of implementing large-scale agile transformations; and 3) To explore the success factors of implementing large- scale agile transformations.

Through the purposive sampling technique, 11 semi-structured one-on-one interviews were conducted with senior managers, department heads, functional heads and divisional executives steering business and technology areas within the SA banks. At the time of the interviews, each participant had been exposed to the agile transformation journey of at least one of the top 4 banks. Some participants also had agile experience in other sectors such as management consulting, telecoms, retail, technology start-ups, the health sector, and the broader financial services industry.

The study found that the agile transformation journeys of the top 4 SA banks were well underway and earning the incumbents some benefit in the form of a reduction in the time taken to land technical solutions, as well as improvements in customer experience. The study confirmed that many of the challenges and success factors of large-scale agile transformations previously documented in literature continue to be prevalent in, and relevant to the SA banking industry. In addition to these, the study found that the prioritisation of technical delivery over innovation was an emerging challenge in the industry. This was further highlighted by participants emphasising the need to ensure a much firmer relationship between the banks’ strategic intent and the technical delivery achieved through agile – the study found this to be a critical success factor in implementing large-scale agile transformations.

While progress is being made, much more remains to be done for the SA banks to realise the full potential of their agile transformations. It is recommended that the incumbents shift their focus from speed through agile, towards greater prioritisation of innovation that solves for the less tangible needs of their customers