Leadership practices and digital transformation: A case of a South African Bank

Abstract

This research report explores the leadership practices required for effective digital transformation in the South African retail banking context, focusing on understanding the leadership practices of operational level employees undergoing digital transformation. The research explores whether the leadership practices at operational management level are aligned to those of senior management and whether there are any other prevailing leadership practices that contributes towards successful digital transformation. The existing scholarly literature examines leadership frameworks and key mindset development against its relativity to leadership positions and the impact thereof in the execution of digital transformation initiatives, however much of the literature is focussed either at a corporate level, executive leadership level or broadly speaks to the collective mindset and values that companies should either instil or foster in employees.

This study was conducted utilising an empirical, qualitative research approach in which semi-structured interviews were held with fifteen sampled participants within the retail division from one of the five major traditional banks in South Africa that prioritised digital transformation as a strategic objective. The sampled participants were identified based on their managerial role and experience in implementation of digital transformation initiatives within their Information Technology function. The study findings support that much of the leadership practices used by executives are indeed also employed by operational managers, however the operational manager focuses on the altro-centric or people-oriented aspects of digital maturity and correctly influencing staff holistically, through focussing on leadership culture & competencies, people centred transformation and transformational practices during digital transformation. Based on the findings of the study, four recommendations have been made in order to further expand on the theoretical and business Body of Knowledge (BoK) in leadership practices and digital transformation within financial services organisations namely, measures for evaluating the situational effectiveness of leadership practices, collective managerial learnings on leadership, the impact of rewards-based innovation & digital transformation and educational investment & retention of talent