Mission critical: the 3 systems of digital transformation

Transcript 

00:00:00 - Introduction

Carrie Forbes introduces herself as the former CEO of League Data, a tech service provider for credit unions in Atlantic Canada. She talks about her project background, a massive digital transformation at League Data, prompted by an end-of-life notice on their core banking system in early 2020. She speaks of the constraints, 3-year timeline, lean budget, COVID-19 disruptions, and rising complexity with additional systems reaching end-of-life.

She introduces the “three systems of transformation”: people, technology,and governance (Decision-making). 

00:05:00 - System 1: People

Carrie focuses on the first system: people. Many organizations make the mistake of putting technology before people, but real transformation starts with individuals. People are unpredictable and work through networks, not just org charts. Excluding the right people leads to project failure, and successful change must consider the emotional impact on frontline teams.

Lack of communication breeds distrust and resistance. She advises financial institutions to build trust by involving broad stakeholder networks early.

00:10:00 - Building trust through honest feedback

She then discusses psychological safety. Teams must feel safe speaking up without punishment. Financial institutions should create space for honest feedback, not just forced cheerleading.

When it comes to building champions, she says that financial institutions should select people with influence, not just titles, to champion change. Informal influencers and skeptics should be engaged early.

For feedback, she advises not to simply collect feedback, but to act on it. FIs should avoid manipulating KPIs to look successful without solving real issues.

00:15:00 - System 2: Governance

Projects need clear decision-making structures—not just enthusiastic teams. Traditional governance is too slow or vague for digital transformation. Without clarity, decisions stall or fail—leading to delays and cost overruns. Speed matters; decisions should happen at the right level. Escalation pathways are essential for conflicts.

00:20:00 - System 3: Technology

She highlights that 80% of project decisions should be handled below CEO/board level. Assign decision-makers based on roles and timelines, not hierarchy.

Technology should enable people and decisions—not override them. Avoid "solutioning" too early without full context from people/governance inputs. Use insights from people/decision networks to inform architecture and RFPs.

00:25:00 - Capability gaps

She warns financial institutions to not assume that their team is fully capable from day one. Skills assessments matter. Tech design should consider frontline knowledge and hidden competencies. Financial institutions should beware of strategic risks from wrong tech choices—can derail projects. Concerning architecture alignment, banks and credit unions should ensure tech architecture aligns with business goals and people networks. Disconnected planning causes adoption failure and reversion to old systems.

00:30:00 - Common signs of misalignment

Carrie points out common signs of misalignment.For people, it's resistance, poor adoption, and low morale. For governance, it's decision delays, unclear roles, and flip-flopping. Technology: rigidity, overcomplexity, and scalability issues.

The success formula depends on strong people networks, governance that enables progress and tech designed with continuous input and adaptability. 

She finishes with an audience poll that reveals common struggles with alignment in people, governance, and tech. Harmonizing all three systems is the key to digital transformation success.