With a decline in cash transactions and the rise of digital-only banks (neobanks), there is a strong push for financial institutions in the Middle East to embrace transformation. However, it can be challenging for leadership to stay honed in on a transformation mission that solves its own specific business challenges, rather than emulating what competitors in the industry are doing.
Misalignments in the goal of a transformation initiative often stem from a disconnect between perceived needs (what leaders think the organisation requires) and its actual needs—what is truly necessary for success. Unfortunately, this often precipitates unsuccessful transformation delivery due to vague, competing or opposing visions for the initiative.
The role of a TMO in aligning business needs to transformation initiativesÂ
For most companies, clearer insight is needed on the business’s real needs versus its perceived needs, and how to align the transformation initiative with these needs accordingly. Establishing an effective Transformation Management Office (TMO) can be effective in achieving this.Â
“One of the key things that we do in transformation delivery is first to understand what an organisation’s perceived needs are and then understand and define its real needs,” says Ferrin who has set up TMOs for transformation initiatives around the world.Â
Additionally, the disparity between an organisation’s need for transformation and its perceived capability to execute it successfully is a common occurrence – often referred to as the transformation gap. As resources are limited for any initiative, prioritisation according to the organisation’s goals is key to its success. Â
“The goal of a TMO is a better understanding of what is required for the business and, if appropriate, what digital transformation initiatives complement the efforts,” explains Ferrin.Â
“Once we understand what initiatives are required, we start to create the transformation roadmap, where we prioritise the initiatives – we start with the ones that will deliver the biggest or most fundamental change.”
The goal of a TMO is aligning the transformation initiative to a company’s goals as early as possible. This establishes a unified vision that can be communicated consistently to all stakeholders throughout implementation and delivery. Health checks are also set up at regular intervals to allow space for issues to be raised and addressed periodically by the steering committee and TMO of the initiative. Â
An effectively structured TMO helps to secure the following, ensuring alignment across departments on the direction of the initiative:Â
- A defined problem statement and business objectives which are well justified.Â
- A desired delivery date for the project and justification if this date is mandatoryÂ
- Strong engagement with relevant teams to raise awareness of the new idea or mission of the transformationÂ
- Ensuring relevant departments/SMEs that will support the engagement are involved early in the initiative and are ready to be engaged for analysis, allowing for issues or suggestions to be raised as early as possible.Â
By engaging an external TMO, a neutral party can help to navigate existing dynamics or conflicting views within various departments, drive urgency for transformation initiatives, and establish the systems and processes within the organisation to drive successful transformation delivery. Â
 At Renoir, we understand that clarifying the mission and vision of any transformation initiative is a critical step to achieving sustainable change. Our teams can work with you to ensure your vision for transformation is aligned to organisational goals, ensuring higher returns on your investment in the initiative.Â
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