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The delta – less disruption, more success

hands of businesspeople holding tablet, laptop and smartphone across desk

With tech-centric changes driving disruption all around us, AgileSHIFT has a simple indicator to help you assess the impact on your organization. The Delta is the difference between the 'target state' and the current performance level. The larger the delta, the more exposed the organization will be to disruption from innovative new ideas, products, and services.

AgileSHIFT can help understand the increased pace of change, the rise of new technologies, the threat of disruption, and the possibility of an inefficient market. All of these can lead to the development of a gap between where an organization currently is in terms of its capability, market position, and offering, and where it could be or needs to be.

The response is to recognize there is a gap, understand the potential impact and take steps to narrow the gap and improve performance. Reviewing your organization in terms of the delta will help focus on potential disruptors. Traditional SWOT analysis can be used, where Weaknesses are aligned to external Threats.
For example, if you are slow to change to cloud technologies in consumer banking, you can rapidly lose market share to the disruptors.

Two recent IT News articles show one Australian retail bank has been slow to change and has paid the price, while another has identified their delta and started on massive change initiatives.

ANZ bank has adopted an agile transformation called NWOW – New Ways of Working, with over 9,000 staff already involved.

By changing their ways of working, ANZ made a $3.5 billion cash profit for the first half of 2019, up 2%, a result that met or exceeded investor expectations in tough market and regulatory conditions. They are closing the gap between where they were and where they should be.

The smaller the delta, the better chance for survival and growth. NWOW is helping with the mind-set change, the cultural approach, but it is an ongoing challenge and ANZ are reviewing the effectiveness as well.

By way of contrast, BOQ has struggled to keep up with emerging technology challenges. Cash earnings plummeted 8% and earnings per share slumped 10%. Part of the problem has been resistance to tech changes, which initially pleased investors, but has now left it stranded as the entire financial services industry, not least customers, goes ‘digital first’.

Is their delta too big already? They may now become a takeover target. The decision to catch up with digital tech may have come too late.

Most organizations will find they need to do more because the desired target state will constantly move as the wider context changes and evolves. As well as understanding the delta and taking action to narrow it to survive, they will need an organizational digital transformation. AgileSHIFT can help, but businesses will need to find the energy to change. Accordingly, the first AgileSHIFT principle is “Change will happen, so embrace it”.

What is your delta? Do you know what the challenges are? What tech-centric changes are coming and how will you respond?

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