Ask who? Your stakeholders.
“As many banks and financial institutions push ahead with the implementation of AI throughout their teams and processes, a recent study by The Upwork Research Institute reveals a growing disconnect between employer expectations and employee experiences regarding productivity and AI adoption.”1
Truer words, I believe, have never been spoken.
Banks are, without a doubt, rushing to implement and integrate AI-powered solutions into their technology stacks. More “truer” words: “As retail banks continue to invest in AI, it’s crucial to remember that technology alone is not a silver bullet for productivity challenges. To truly leverage AI’s power, banks must fundamentally shift how they organize talent and work. Retail banks can create AI-enhanced work models that drive productivity while also prioritizing employee well-being and engagement.”1
What are banks doing, or more to the point, not doing in this race to leverage AI’s productivity-enhancing possibilities? It looks to me like they’re failing to do the obvious, i.e., to take the most basic steps that any organization should take when integrating a new technology into their workflows: Build consensus.
There’s nothing terribly new here, or at least there shouldn’t be. And yet, there’s been a lot of talk lately about how the majority of banking industry decision makers are unsatisfied with their progress in their pursuit of AI opportunities. Why? I believe that it stems from an approach to technology acquisition that fails to recognize this fact: That a tech purchase is, in reality, an organizational change. I also believe that there is a fundamental reason for this failure: Strange as it may sound, putting the focus on technology can be far less challenging than putting the focus on people – which is why firms tend to adopt a technology-first instead of a people-first approach in their tech purchase process.
“For their digital transition to add value, change leaders must begin that transition with a change strategy in mind, investing time early in the process to ensure that everyone — from C-suite leadership to front-line employees — is not just on board, but fully engaged.”2
- McKinsey. Why most digital transformations fail and how to flip the odds. April 2023.
So, what are just a few of the important steps C-suite bankers can take to increase the likelihood of a successful AI solution adoption?
The often underestimated role of stakeholders
A common change leader misperception is that stakeholders are users. They’re not. A stakeholder is any individual who is impacted by a decision. When identifying stakeholders, leaders must cast a wide net, including employees. After all, they will be the primary users of the new product or system. Engaging all stakeholders throughout the entire process can be a time-consuming and challenging one, but by not doing so, leaders risk encountering friction down the road.
What’s the measure of success?
Like any organizational transformation, in fact, like any endeavor on an enterprise-wide scale, all stakeholders must agree on the measures of success. Arbitrary definitions can and will hinder progress. What is considered a win? For instance, automating a process by 50% could be considered a success by some, while others could be aiming for 80%. ROI, key to measuring the value of any tech implementation, is nearly impossible to calculate when stakeholders have varying definitions of success.
That shiny object? Ignore it.
It’s been called SOS (Shiny Object Syndrome) and the reason is clear. With breakthroughs in technology occurring on an almost-daily basis, we humans are always wondering… is my focus on the right solutions at this moment OR should I, perhaps, shift my focus elsewhere? In a world where banking C-level execs face a fast-evolving marketplace, with regulations that are evolving just as quickly, it’s easy to get distracted. SOS most often occurs when leaders are managing – and become frustrated by – multiple initiatives, underestimating the complexities of executing the transformation, or failing to fully involve all stakeholders. This frustration can lead to SOS. It can also lead to FOMO (Fear of Missing Out). What’s the best way to avoid SOS and FOMO from the start? Set clear, measurable, agreed-upon, and achievable goals. Then, stick to them. Monitor both long-term and short-term goals and measure success on a regular basis. Unfortunately, bright, shiny objects can be a welcome alternative to making hard choices and staying on task.
Make use of use cases
What is a use case? It’s a detailed description of how a user interacts with a product or system to achieve a specific goal. What does a use case do? It encapsulates all stakeholder parameters, goals, and benefits into a simple document. Once your stakeholders have developed their use cases, prioritize them, and eliminate any that are incompatible with existing technologies or lack clarity in measurement. Then, identify those use cases that are aligned with your current strategic goals (1-3-year roadmap) versus those that reflect longer-term investments (3-5-year roadmap). This allows the buying team to focus only “the task at hand.” Ideally, these are the use cases that represent the most business value. Your use cases can then be shared with vendors, from whom you can gain valuable insights. Now is the time to engage them, and to learn how – or if – their solutions deliver against your needs. PS: Interested in learning more about use cases? Wrike provides some useful info.
Build consensus and accelerate your AI tech adoption
As banks continue to feel the pressure to accelerate their technology investments – in AI, in particular – they must consider, if they haven’t already, taking a structured and rigorous consensus-building approach. C-suite leaders can spearhead a successful tech adoption with a process that is inclusive, collaborative, and capitalizes on the knowledge and experience of both employees and vendors. Only then can banks implement and integrate technologies in a cost-effective, disruption-free way. Only then can they truly reap their benefits.
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1The Financial Brand. Deploy AI Without Triggering Employee Alienation and Burnout. August 16, 2024.
2McKinsey. Why most digital transformations fail and how to flip the odds. April 2023.