The role of middle management in the execution of digital transformation in a South African Bank

Abstract

Companies in all industries are rapidly transforming their businesses using emerging technologies to adapt to market pressures and stay competitive, focusing primarily on current business models, customer experience, and organisational process inefficiencies. As a result of digital advances, such as smartphone mobility, enhanced customer experience through social media, and a greater understanding of data and analytics, there is a growing need for companies to rethink how they do business and engage with their customers. This is referred to as digital transformation (DT), and the banking industry is no exception. Much has been written in literature about the C-Suite's role in DT, with little mention of middle management's role in the digital transformation journey and its execution. This research explored middle management's role and influence in the execution of digital transformation in the South African banking sector. The study investigated the role of middle managers in interpreting DT strategy, the competencies they need to execute effectively, the challenges they experience during DT and analysed the impact of their misalignment to DT. A case study method was used to collect data through semi-structured interviews with ten participants in one of the top banks in South Africa. The participants were identified using purposive sampling, and the data analysed using thematic analysis. The study discovered that middle managers play an essential role in adopting and implementing DT and emphasised the importance of their participation during the entire DT journey. The findings show that middle managers need to iii understand DT and its relevance in banking to play a critical role in DT. The results also outline the competencies they need to be effective in DT execution which include effective communication, digital ‘savviness’ and change advocacy. It highlights that their misalignment to DT strategy has a direct impact on DT execution and that they have a role to play in resolving challenges that are encountered during DT. As more South African companies embark on their digital transformation journeys, the research could aid transformation leadership by developing a middle management strategy to lead various phases of the transformation within their environments while remaining aligned with the overall DT initiative.