ANZ Bank announced in the Financial Review this week that it’s throwing out the old corporate structure, and is instead structuring itself like a technology company like Google or Facebook.
What is remarkable about this move is that there will be no pilot. The decision is made and from 2018, ANZ will go from seven to eight layers of hierarchy to agile teams with two levels below the CEO.
Above I have used the powerful image of the Berlin wall to represent this. Although our big 4 banks are amongst the most profitable in the world, they largely exist in aseparate reality to the the day to day struggle of their customers.
What does this all mean?
By moving to Agile teams organised around solving customer problems, ANZ Bank will dramatically speed up its ability to change and adapt to changing customer expectations.
instead of having departments that are heavily specialised and functions and heads of those things, you organise yourself aroundcustomer outcomes. – ANZ CEO Shayne Elliott
Another major advantage Agile will bring to ANZ is this idea of delivering value to the customer early. The best way i have ever seen this explained is from a slide deck that spotify used to explain the concept of Minimum Viable Product (MVP)
Will it work?
I believe it will. ING made a similar move about 2 years ago and they have enjoyed a 30% increase in employee engagement and productivity. They modeled their bank on the structure of Spotify.
The reality is every organisation is going to have to make this shift away from its bureaucracy, to alternative operating models. The world is moving too fast, and the competition has never been fiercer for both talent and customers.
Almost two thirds of Australian employees consider themselves to be emotionally detached from their employer, and so they just do the bare minimum. – SMH
Over to you
What do you think? Will this bold new move pay off for ANZ? Leave your comments below and tell me what you think.