Three Principles for Future-Proofing Financial Services Organizations
Discover the guiding principles that top banking, insurance, and investment leaders live by to help navigate economic turbulence.
The indicators are conflicting: we may or may not be headed toward a global recession, and many financial services organizations are reacting accordingly to rising interest rates, tightened belts, and other uncertain economic indicators.
During these uncertain times, tech and financial services organizations have been looking to cut costs through layoffs. However, research suggests that workforce downsizing does not indicate improvements in company performance and more often results in profit cuts.
Recently, Slalom brought together top banking, insurance, and investment leaders from the Chicago area to discuss how they are navigating this new landscape. These leaders landed on three guiding principles for navigating economic turbulence:
- Fostering a culture of trust
- Embracing constant change
- Maximizing technology investments
So, how can you apply these principles to your work and future-proof your organization?
1. Fostering a culture of trust
Trust, though frequently overlooked, is the foundation of a high-performing team. By nurturing a culture of trust among employees and partners, leaders encourage individual and organizational growth. This growth, however, isn’t just linear; it flourishes when diverse perspectives are not only allowed but celebrated. Encouraging a “challenger mindset,” where individuals challenge the status quo to bring innovation, drives progress.
When it comes to work culture, there’s no perfect formula that fits all companies — or even an individual company. Slalom’s partnership with Nasdaq is a great example of how culture drives innovation in financial services.
Moreover, adopting a “with you” and not a “to you” mindset with employees and partners enhances collaboration, drives inclusivity, and further strengthens the culture of trust. But this mindset needs careful calibration in today’s age of hybrid and remote work, which can potentially diminish this culture of trust.
Transplanting old management methods onto new working styles isn’t sufficient. Leaders need to augment existing communication channels with new ones, such as seeking regular feedback from customers and trusted vendor partners, to maintain an ecosystem of trust.
2. Embracing constant change
The rapid evolution of technology, coupled with unforeseen global events, calls for a flexible mindset from leaders and employees. Future-proof organizations embrace new ideas and foster innovation.
Your organization’s strategy is a compass that guides us through the storm of inevitable change. It ensures leaders and employees remain focused, motivated, and well equipped to navigate uncertainty. This strategy-led approach, coupled with regular evaluation of progress and necessary adjustments, fosters a culture of continuous improvement and ensures alignment with the organization’s strategic goals.
As Claire Laiacona notes in “Aligning Culture in Times of Change,” building resilient teams during times of change can effectively help the organization sustain itself for the long haul while overcoming low employee engagement.
3. Maximizing technology investments
Strategic technology use provides a competitive edge, and maximizing current investments should be a shared goal across business and technology leadership.
Embracing innovative technology during challenging times empowers leaders to stay competitive, positioning the organization to adapt to changing landscapes. Financial services organizations now need to move beyond realizing only partial benefits of technology; they must activate their technology investments and exploit their full potential.
As Richard Winston explains in his recent LinkedIn article, “Everything in Real Time, All the Time,” despite the economic downturn, the need to innovate is relentless and consistent. But we have repeatedly seen that financial services firms that embrace innovation while maximizing investments in technology often bounce back stronger from times of duress rather than plateauing into mediocrity.
Moreover, focusing on uniformity and data quality can elevate leaders beyond subjective decision-making and toward data-driven outcomes. This ensures that technology investments move from the “expenditure” column to the “strategic assets” column, continually delivering value and driving growth.
In a blog post on building employee trust in data, Jessica Stern provides ideas on how companies can use data to make smarter decisions by approaching the challenge as a cultural one rather than a technical one.
By building a culture of trust, embracing constant change, and maximizing technology investments, financial organizations can future-proof themselves and remain robust, relevant, and competitive in the face of evolving landscapes.
Slalom is a global consulting firm that helps people and organizations dream bigger, move faster, and build better tomorrows for all. Learn more and reach out today.
