New management models are also finding their way into the financial industry. Above all, bosses of the old school are challenged.
There are currently many discussions about the boardrooms in banks. The impression sometimes arises that modern management styles have completely bypassed the banking industry. But the impression is deceptive.
“There are three major trends,” says Melanie Knjjff from the Swiss Bankers Association. She is responsible for human resources and therefore has an insight into the industry.
One of the trends – along with a new learning culture and employee-oriented leadership – is agility. Agility is an organizational form pioneered by software developers.
More trust – less control
It’s about driving developments quickly and creating solutions, not anticipating them. Agility is often equated with structurelessness, says Knijff.
But the opposite is the case: agility goes hand in hand with structure and planning. This is often accompanied by a new understanding of leadership: more trust, less control, dialogue instead of orders. When it comes to values, the boss becomes a role model – a coach who empowers his employees.
UBS is considered a prime example of a bank that wants to become agile. Other banks are also following suit. “A complex, more digital environment and unforeseen events such as Corona or the war in the middle of Europe – all of this requires a different approach,” agrees Stefanie Auge-Dickhut.
A complex, more digital environment and unforeseen events require a different approach.
Auge-Dickhut is head of the Business Engineering Institute St. Gallen (BEI), a management consultancy specializing in digital transformations. Auge-Dickhut researches new business models on behalf of banks. It confirms the trend towards agility and a new understanding of leadership.
Salary is often no longer the only important factor
The BEI boss sees two styles in the industry: transactional and transformational leadership. The former is more traditional and hierarchical. The principle of “work for salary and bonus” applies.
In transformational leadership, the focus is on the meaning of the work, the purpose and thus the intrinsic motivation. There is now a trend in the industry towards transformational leadership.
If employees are intrinsically motivated, it doesn’t matter where they work.
New forms of work such as home office also fit better with this understanding. “If you assume that employees are intrinsically motivated, it doesn’t matter where they work,” says Auge-Dickhut.
Legend:
The office is particularly important for personal exchange – people often work at home in a concentrated manner.
Imago/Oleksandr Latkun
Trust instead of control, that’s the credo. “The function of the office is changing,” she says. It becomes a kind of meeting place where communication and exchange are important. Concentrated work at home.
Employees are the focus
New leadership models and cultures are not limited to the banking industry. Anika Thym, doctoral student at the University of Basel, refers to the Global Work Force Report 2022, in which 1000 managers from twelve countries and ten industries were surveyed.
In this, she recognizes tendencies towards an understanding of leadership that places employees at the center. “We look at how employees can reconcile their lives with the world of work and not how the rest of their lives fit into their work,” says Thym. How formative these developments will be for future banks remains to be seen.