ANZ Bank's Agile Transformation

The provided assignment details ANZ Bank's efforts to transform through an agile approach. This transformation aimed to improve financial performance by embracing digital technology, creating a greater customer experience, and strengthening relationships. The bank adopted the Spotify model, eliminating hierarchy, and introduced a new way of funding (NWOL) system. It also focused on shared values, including integrity, collaboration, accountability, respect, and excellence (ICARE). To support this change, ANZ organized teams to lead four streams of work: services, connectivity, agility, and culture. The bank's staff was reduced by 30% during this transformation.

AUSTRALIA AND NEW ZEALAND BANKING GROUP: THE AGILE TRANSFORMATION
Only The Agile Will Survive - ANZ chief executive Shayne Elliott
“One of the things that needs to shift, if we are going to be successful for the future in Australia, is
waking up to the fact that the strategy of the past is not going to work in the future,” Elliot said.
“We need to shift and we need to shift quickly. We need to do it safely but we need to do it fast, and to
me, that is the big challenge for banks operating in Australia today whether you are big or small.”
In May 2017, ANZ CEO Shyne Elloitt had taken the decision to move bank to Agile. Moving it from the
traditional command-and-control, risk-based, and process-driven hierarchy to collaborative teamwork.
ANZ would become smaller and more focused on its core competences, through this transformation.
The employees value would no longer rely on technical skills, experience, or seniority, but on growth
mindset, adaptability, and ability will bring change. Employee rewards would be based more on
collaboration than profitability. As authority was delegated to tribes and Squads rather than centralized
to divisional managers, while bank had to ensure that risks were still under control. These decisions
came from the combination of competitive pressures of the disruptive startups of financial technology
(fintech) companies and also from a series of internal scandals rooted in ANZ’s long-history culture.
Given that many organizations had failed to implement extremely complex agile transformation, how
would ANZ respond to these external and internal challenges? how could ANZ be successfully
transformed? Given its intensely rooted corporate culture that had existed for over 180 years.
AUSTRALIA AND NEW ZEALAND BANKING GROUP
History and Background
George Kinnear, a Scottish entrepreneur, establish the Bank of Australasia in 1835 after embarking on a
six-month voyage from London to Australia. The bank survived some of the most difficult economic and
social times through its hard-working employees, who created an enduring, growing, and innovative
bank and after several mergers and acquisitions formed ANZ in 1970. ANZ had transformed to become a
regional bank with global quality Since 2007, with the rise of the Asian economy and the growing
connectivity among Australia, New Zealand, and Asia Pacific. ANZ provided a broad range of banking and
financial products and services, serving more than 10 million customers in 34 countries through a
network of over 1,200 branches and over 50,000 employees, around the world.
Smith joined ANZ in 2007 and had worked for three decades in HSBC Plc and led its Asian operations. He
was a highly paid CEO in Australian banking history As a banker with global perspective,19. However, his
aspiration for super-regional strategy for ANZ in Asia failed. Under his leadership the ANZ’s market value
fell six per cent, while shareholder returns suffered. Smith style was to instigate competition—top
executives and whole departments had to be resilient and persistent to fight for resources and
positions. He travelled so much that the head of the bank’s Asian operation, could rarely discuss issues
with him in person.21 Smith failed to transform ANZ into a super-regional bank in Asia, and announced
his departure would be at the end of 2015.22He was perceived as over-promising but under-delivering.

Elliott succeeded Mike Smith as CEO of ANZ in January 2016. Elliott with over 30 years of experience in
banking in Australia and overseas, was appointed to achieve ANZ’s priorities in building a better
capitalized and balanced bank that would deliver stronger outcomes to shareholders, employees,
customers, and communities.18 The appointment of Elliott also marked a new beginning for ANZ to
become an aggressive financial institution through an agile transformation.
Cultural background
There were several corruption issues, trade manipulation, unethical treatment of investors, along with
use of drugs and alcohol in dealing rooms that were found in ANZ in 2015. In March 2016, ASIC
announced legal actions against ANZ for its
“. . . unconscionable conduct and market manipulation” related to the bank’s bill swap reference
rate.24
In response to these bad behaviours, Elliott stated that,
“. . . the management is not going to tolerate and we are not going to sweep it under the carpet
. . . even if it comes at a cost of being in the newspaper or being sued by people. It is important
to be transparent about how problems are dealt with.26
Elliott believed many of the large financial crises in the past could be attributed to the breakdown in the
banking culture, especially related to employee incentives that encouraged risk-taking behaviors. Elliott
emphasized that ANZ’s stance was to
“. . . shift away from protecting the bank from a bad reputation to actually thinking about the
broader impact of those decisions on the community.”28
SEARCH FOR THE CULTURAL SHIFT—“THE ANZ WAY”
Elliott sent a letter to ANZ’s 50,000 employees in July 2017, urging them to adopt “The ANZ Way” ,
attempting to reform the culture. Elliott’s 3,500-word message had a quote from the late singer-
songwriter David Bowie, who had warned in 2002 that the Internet would finally transform the music
business. According to Elliott, “The forces that changed Bowie’s world aren’t too different to those
reshaping our business: technology, globalization, regulation, and customer and community
expectations.”29 Elliott’s sold Asian assets, thus ending the lawsuit against ANZ for its unethical
behaviours and he aimed to repair the bank’s tarnished image and improve its performance. ANZ
refocused on its core Australia and New Zealand business
The ANZ Way aimed to implement three most prominent changes:
first, to use ANZ’s purpose and values to drive change and solve society’s challenges, strengthen
relationships with customers, and inspire people;
second, to embrace digital technology to create a greater experience for people and customers with the
ability to build strong mutual trust and relationships; and

third, to transform financial performance by building a simpler, better capitalized, and better balanced
bank. To support the changes, ANZ organized teams to lead four streams of work—services,
connectivity, agility, and culture—with clear objectives and performance measurements.31
ANZ’s vision was to shape a business world where people and communities could thrive. This vision
would be achieved through fair and responsible banking, social and economic participation, and
sustainable growth.32 The crucial elements in ANZ’s business were its new cultural values, which
included integrity, collaboration, accountability, respect, and excellence (ICARE). These values were
driven by connecting with empathy, growing people selflessly, creating shared clarity, being curious, and
empowering people.33 Based on constant feedback, ICARE, according to Elliott, was more than just a
short-hand way of referring to the company’s values; it was intended to be all employees’ daily attitude
as they were encouraged to judge and act to ensure their decisions were fair in whatever situation with
customers and colleagues, and in communities (see Exhibit 4).34
Changing to a Learning Organization
According to Elliott, We are a learning organization that encourages us all to adapt and improve. This
means we’ll recognize and reward those who are curious and able to learn new skills.
In 2017 ANZ, announced an agile transformation to the Australian division of the bank and supporting
functions.
Why agile? (Ref: https://bluenotes.anz.com/posts/2018/09/longread--the-origins-of-agile)
1. Move faster to respond to market changes
Creating faster decision-making systems and breaking down functional silos with multidisciplinary,
autonomous teams working together faster in a more collaborative manner speeds up the development
cycle in an iterative fashion.
2. Be more innovative
Empowering teams to unleash their inner creativity allows each member to contribute and challenge the
status quo from the bottom up.
3. Create a more adaptive organisation
Self-organised teams working on short cycles (known as sprints in Agile-speak) enables flexible
adjustments to internal user request and external market need changes.
4. Drive a more accountable (and motivated) workforce
Employees in squads create, prioritise and own their work decisions with transparent accountabilities –
in a true egalitarian and collaborative environment.
5. Improve flow of internal communication

Agile ‘rituals’ generate more internal and intra-team communication through daily stand-ups, product
owner synchronisation and showcases - what is being worked on or the roadblocks faced are more
visible for collaborative action and resolution.
6. Focus the whole organisation on delivering value to customers
The purpose of each team is solely focusing on developing specific customer related solutions from end-
to-end, responsibility is shown through continuous test and learn and user feedback loop.
7. New roles
The product owner holds a key role in orchestrating and communicating the flux of initiatives or
activities to maximise team performance and drive optimum customer outcomes.
New Ways of Working (NWOW) 40
As a part of the agile transformation, ANZ announced NWOW in May 2017.43 NWOW rested on how the
company energized its workforce. It aimed at making ANZ more competitive by delivering better
outcomes for customers more quickly. Ana Marinkovic, an executive who led the agile transformation at
ANZ, emphasized the analogy between NWOW and the Darwin’s theory of evolution that
. . . it’s not the strongest of the species that survive, nor the most intelligent, but the
one most responsive to change. The cost of not changing is significant and that’s why ANZ is
focusing on building and defining cultural and structural foundations.44
ANZ’s agile implementation was based on the Spotify method, which has Tribes, Squad along with
Chapters and Guilds.

New Ways of Leading – NWOL (Ref: https://bluenotes.anz.com/posts/2018/03/Superchickens-trust---the-new-way-to-lead)
From the ashes of the old world came new superpowers – the technology giants – and leaders with
drastically different skill sets (think Steve Jobs or Elon Musk) who could navigate rapidly changing
business environments.
At ANZ we have identified five behaviours we call our New Ways of Leading – an approach we hope will
bring our leaders and our business into the future.
• Be curious

We’ve moved out of the industrial era and into the information era. Curiosity is a fundamental and
powerful tool.
• Create shared clarity
Each team member should be able to explain simply and clearly what the team is accountable for - not
individual roles but collective purpose.
• Empower people
No matter how much work one person can do you will not go far enough if you cannot work through
others.
• Connect with empathy
This is clearly an area where technology cannot replace the human drive to bond as a motivator in the
workplace.
• Growing people selflessly
Grow the next generation of leaders by sharing power, putting the needs of others first and developing
people to perform to their best.
The old saying ‘knowledge is power’ is changing. While knowledge is powerful, sharing information is
the true source of power because it enables others to act. The internet has made information accessible
at everyone’s fingertips. You don’t have to know all the answers or pretend you do. It’s the capacity to
solve problems creatively, to innovate, to communicate and collaborate which makes a leader.
Leadership is emerging in other forms – and you don’t need a title for that.
Headcount shrink in war on costs
Agile or not, ANZ’s rock solid number was conspicuously helped along by what’s now a 5 percent
headcount reduction over the past 12 months, de-staffing that happened concurrently the NWOW
program alongside with a spate of divestments aimed at streamlining operations.
Technology-led cost cutting – automation, robotics, process optimisation and service digitisation –
helped jettison plenty of people over the past year as the institution prepares for lean post-Royal
Commission times.
Explaining ANZ’s technology cost base, Elliott stressed to analysts that when he said technology "it’s not
just boxes and wires its people."
"The proportion of people in tech will go up," Elliott said.
"In terms of boxes and wires we have to get value from that."
Culls bad leaders, does more with less, changes funding model. (Ref: https://www.itnews.com.au/news/anz-reveals-the-good-and-
bad-of-its-agile-transformation-523277 )

What’s now clear from Venter’s (General manager of omnichannel Christian Venter - one of the key
executives that led the agile transformation) commentary at the Adobe Summit is the mechanics of how
ANZ reached this point.
“This is going to be interesting for you. We took 9000 people and we asked them to reapply for their
jobs - right from the senior leadership executives all the way down,” Venter said.
“I was one of those people. I ran this transformation program, and even though I ran it, I was out of a
job at the end of it and had to reapply for one of the jobs within that process.
“It was an interesting experience - video interviews, psychological testing, showcases - all kinds of things
that we did very differently to try and understand ‘are these the right people?’”
Some of the things that made it “interesting” were also patently uncomfortable for those that went
through it.
“People said they didn't like the video interview process, it makes [them] scared, so we changed the way
we did video interviews,” Venter said.
“There were just little things that we adapted all the way [through the transformation] to show staff that
‘hey, if you give us feedback, we will listen’.”
After re-applying for a role in the newly-agile ANZ, those that made the cut noticed a difference.
“We didn't select the same ‘usual suspects’ into the roles, and that was the thing that told our
organisation we were serious about this,” Venter said.
“The ‘rock stars’ who got the big bonuses every year, who rode roughshod over people and left a trail of
bodies in their wake, didn't get the jobs.
"It radically changes the way you assign work, fund work, manage things, what you measure, what you
reward and what kind of capabilities people need in order to succeed," Mr Elliott told The Australian
Financial Review.(Ref: https://www.afr.com/companies/financial-services/anz-blows-up-bureaucracy-as-shayne-elliott-takes-the-bank-agile-20170428-gvumc2)
"It's much more collaborative. It's more of a generalist world than a specialist world.2
Funding
While the bank has new ways of leading and working, it still doesn’t necessarily have a new way of
funding the work.
This is an issue often seen in agile transformations: workers are rearranged but funding continues to be
allocated once-a-year and on a project basis.

This can cause problems in an agile model because how a team iterates on its work and evolves a
project or capability is uncertain, and there is little room in the traditional model to absorb the cost of
change.
Venter mentioned that “We'll now move to capacity-based funding. So a squad in a tribe is 10-12
people, the tribe can spend x because that's your headcount, and that's it.
Evolution (Ref: https://bluenotes.anz.com/posts/2018/03/Superchickens-trust---the-new-way-to-lead)
It’s fair to say the idea of leadership is evolving across all industries. Many of the large corporations I
work with are changing what it means to be a leader.
Leaders were once expected to be ‘unshakable’, ‘strong’ and ‘powerful’. Today, leadership theory talks
about ‘authenticity’, ‘emotional intelligence’ and ‘an ability to build and maintain strong relationships’.
So, what has driven this change?
It’s clear this movement has come from the ground up, reflecting a growing wariness toward those in
business and politics and a shift in power through digital and social media. Above all it reflects the
growing importance of trust.
One of the most-prominent management theorists of today, Simon Sinek, talks about the psyche of
leadership in the military where people willingly putting their lives on the line for others.
Sinek says at meal times officers are the last in line, making sure soldiers are fed before they take a
plate. However, in instances where an officer is left without food, his soldiers all take a bit off their own
plate so the officer never goes hungry.
It’s not a rule; it’s just a culture.
Diverse mavericks
For Michelle Ho, Global Head of Financial Institutions Credit at ANZ, success is about ‘helping other
people to succeed’.
She emphasizes that her accomplishments have never been a solo endeavour. “My success is a
collection of other people’s successes. I really enjoy working with people and helping them grow and
thrive.
“It is important to have different dynamics in the team. Not just gender but cultural background and
age. It helps you open up and see how people perceive and consider things from different perspectives.
I have had very diverse teams at ANZ.”
“The future of banking is not boring. A lot of our work is about breaking the mould and innovating in an
industry that is hundreds of years old,” says Ho. “Young people with bright and highly adaptive minds
are always in demand. They will excel if they demonstrate the versatility and new ways of thinking to
disrupt and transform.” (Ref: https://news.efinancialcareers.com/hk-en/3002612/success-is-a-path-best-shared-when-you-work-at-anz-heres-how-the-bank-
helped-me-on-my-career-path-sc_

Limitations / Challenges
ANZ Banking Group has revealed the full impact of its large-scale agile transformation, including how it
created a new class of leaders and now handles the same workload with up to 30 percent less staff.
ANZ recently revealed it's faced some substantial challenges getting the NWOW cultural fit right,
including making many people in the 9000 strong push re-apply for their jobs using video interviews.
Elliott made it plain there are operational limits into how far and fast enterprise agile programs like
NWOW can travel.
“I don’t have a target, I don’t really care what the number is, if it works we want more of it,” Elliott
expounded... before listing where new ways of working, well, doesn’t really work.
“It doesn’t work in some areas. It won’t work in contact centres, it won’t work in branches, it won’t work
in a dealing room,” Elliott said before pouring some very cold water on the overuse of the great agile
managerialist meme.
“It’s not about agile, that’s why we called it New Ways of Working,” he contested.
ENDNOTES
1 This case has been written on the basis of published sources only. Consequently, the interpretation and
perspectives presented in this case are not necessarily those of Australia and New Zealand Banking Group Limited
or any of its employees.
2 Andrew Cornell, “ON THE COUCH: Culture, Growth and Purpose with Shayne Elliott,” bluenotes, April 11, 2017,
https://bluenotes.anz.com/posts/2017/04/on-the-couch-culture-growth-and-purpose-with-shayne-elliott ; “The New
ANZ Way: A Message from Shayne,” ANZ, August 2017,
www.anz.com.au/content/dam/anzcomau/images/career/pdfs/AU21543%20%20Letter%20%20Final.pdf.
3 Julian Bajkowski, “ANZ's Boss Hits Pause Button on Massive Agile Expansion,” itnews, May 2, 2019, accessed June
8, 2019, www.itnews.com.au/news/anzs-boss-hits-pause-button-on-massive-agile-expansion-524529.
4 Joanne Gray, “ANZ Blows Up Bureaucracy as Shayne Elliott Takes the Bank Agile,” Financial Review, May 1, 2017,
www.afr.com/business/banking-and-finance/anz-blows-up-bureaucracy-as-shayne-elliott-takes-the-bank-
agile20170428-gvumc2.
5 James Thomson, “ANZ Examines New Pay Structures to Improve Culture,” Sydney Morning Herald, March 23,
2016, www.smh.com.au/business/anz-examines-new-pay-structures-to-improve-culture-20160320-gnmkym.html

6 Paul Karp, Nick Evershed, and Christopher Knaus, “A Recent History of Australia's Banking Scandals,” Guardian,
April 19, 2018, www.theguardian.com/australia-news/ng-interactive/2018/apr/19/a-recent-history-of-
australiasbanking-scandals.
7 Luuk Bolijn and Nikoo Delgoshaie, “Why Many Agile Ttransformations Fail, and How Yours will Succeed,”
accenture, July 29, 2019, www.accenture-insights.nl/en-us/articles/why-many-agile-transformations-fail-and-how-
yours-will-succeed.
8 “Some Features of the Australian Banking Industry: Background Paper 1,” Royal Commission into Misconduct in
the Banking, Superannuation and Financial Services Industry, 2018,
https://financialservices.royalcommission.gov.au/publications/Documents/some-features-of-the-australian-banking-
industrybackground-paper-1.pdf.
9 “2017 Ranking & Reviews Top Ranking Banks in Australia,” AdvisoryHQ, accessed December 5, 2018,
www.advisoryhq.com/articles/best-banks-in-australia/; the four largest banks held total assets of A$933 billion,
A$915 billion, A$839 billion, and A$778 billion, respectively.
10 “The Structure of the Australian Financial System,” Reserve Bank of Australia, March 2006,
www.rba.gov.au/publications/fsr/2006/mar/struct-aus-fin-sys.html.
11 Paresh Kumar Narayan and Deakin University, “An assessment of the Australian financial services sector,”
International Labour Office, July 29, 2015, www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilojakarta/
documents/meetingdocument/wcms_396163.pdf , page 3; Sam Jacobs, “Here's how much the major Australian
banks contributed to tax revenues in 2016,” Business Insider, June 28, 2017, www.businessinsider.com.au/bank-
lobby-goeson-the-attack-with-a-new-report-showing-the-industrys-contribution-to-tax-revenue-2017-6.
12 “ANZ Submission to the Inquiry into Consumer Protection in the Banking, Insurance and Financial Services
Sector,” ANZ, March 2017, www.anz.com.au/content/dam/anzcomau/documents/pdf/aboutus/
wcmmigration/consumer-protection-2017.pdf
13 “The Future of Banking in Australia,” Strategy&: Escaping the Commodity Trap, pwc, 6–7,
www.pwc.com.au/pdf/pwc-report-future-of-banking-in-australia.pdf.
14 Deleveraging referred to the practice of reducing the level of debts by selling assets; financial repression was
associated with governmental policies to allow banks to provide inexpensive loans to companies and governments
to reduce the burden of repayments.
15 “ANZ 180 Years,” ANZ, 2015, accessed November 25, 2018, https://shareholder.anz.com/pages/180-years.
16 A$ = Australian Dollar; A$1 = US$0.75 in January 2017; all currency amounts are in A$ unless otherwise
specified.
17 ANZ, “2017 Full Year Results,” October 26, 2017, accessed November 25, 2018,
https://shareholder.anz.com/sites/default/files/fy17_results_presentation_and_idp_lodgement_-_26_oct_2017.pdf,
page 48.
18 ANZ, 2017 Full Year Results, 6–10, October 26, 2017, accessed November 25, 2018,
https://shareholder.anz.com/sites/default/files/anz_-_annual_report_2016.pdf.
19 “About Mike Smith,” bluenotes, accessed November 26, 2018, https://bluenotes.anz.com/authors/k-o/mike-
smith.
20 Aaron Patrick, “Inside story: How ANZ Paid Mike Smith $88M for Failed Asian Strategy,” Financial Review, July 28,
2016, accessed November 25, 2018, www.afr.com/business/banking-and-finance/inside-story-how-anz-paid-mike-
smith-88m-for-failed-asianstrategy-20160610-gpgbp3.
21 Ibid.
22 Anne Hyland, “How Will ANZ's Mike Smith be Remembered?,” Financial Review, October 1, 2015, accessed
November 26, 2018, www.afr.com/business/banking-and-finance/how-will-anzs-mike-smith-be-remembered-
20151001-gjyx95.
23 Jemima Whyte, Jonathan Shapiro, Sarah Thompson, and Joyce Moullakis, “Inside ANZ's Toxic Culture: The High-
Octane World of Dealing Rooms,” Financial Review, January 15, 2016, accessed November 26, 2018,
www.afr.com/business/banking-andfinance/inside-anzs-toxic-culture-the-highoctane-world-of-dealing-rooms-
20160114-gm5mk6.
24 Sarah Kimmorley, “Here's the Full Statement from ANZ in Response to the ASIC Probe for Alleged Market
Manipulation,” Business Insider: Australia, March 4, 2016, accessed December 6, 2018,
www.businessinsider.com.au/heres-the-full-statement-from-anz-inresponse-to-the-asic-probe-for-alleged-market-
manipulation-2016-3.
25 Jonathan Shapiro, James Eyers, and Patrick Durkin, “ASIC Sues ANZ for Rate Rigging,” Sydney Morning Herald,
March 4, 2016, accessed November 26, 2018, www.smh.com.au/business/banking-and-finance/asic-sues-anz-for-
rate-rigging-20160304-gna7gg.html.
26 Thomson, op. cit.
27 Jane Wardell, “ANZ CEO Says Taking Steps to Change Culture after Scandals,” Reuters, November 30, 2016,
accessed December 9, 2018, www.reuters.com/article/anz-bank-ceo-culture-idUSL4N1DV28A.
28 Ibid.
29 Jamie Smyth, “ANZ Chief Embraces Bowie in Search for Culture Shift,” Financial Times, July 31, 2017, accessed
November 26, 2018, www.ft.com/content/a8771f92-75c5-11e7-90c0-90a9d1bc9691. For the exclusive use of C.
Robinson, 2020. This document is authorized for use only by Craig Robinson in 2020. Page 13 9B20M006
30 Ibid.

31“The New ANZ Way,” op. cit.
32 “Great Place to Thrive,” op. cit.
33 Ibid.
34 Ibid.
35 “Agility: It Rhymes with Stability,” McKinsey & Company, December 2015, accessed June 10, 2019,
www.mckinsey.com/businessfunctions/organization/our-insights/agility-it-rhymes-with-stability.
36 Lucille Keen, “Banking Gets Speedy with Agile Delivery,” pwc: Digital Pulse, October 24, 2017, accessed
December 4, 2018, www.digitalpulse.pwc.com.au/banking-speedy-agile-delivery/.
37 Asha Barbaschow, “ANZ Bank to Adopt Google-Like 'Agile' Approach to Customer Experience,” ZDNet, May 2,
2017, accessed December 4, 2018, www.zdnet.com/article/anz-bank-to-adopt-google-like-agile-approach-to-
customer-experience/.
38 “Business Transformation, Adaptive Leadership Coach & Social Architect, Challenging the Status Quo: ANZ Agile
Transformation to Create a Learning Organisation,” Hi, I’m Chris Chan, accessed November 26, 2018,
https://chrischan.com.au/2017/09/19/anz-agiletransformation-to-create-a-learning-organisation/.
39 “ANZ to Implement Scaled Agile Approach to Transform Customer Experience,” ANZ: Media Centre, May 2, 2017,
accessed November 26, 2018, https://media.anz.com/posts/2017/05/anz-to-implement-scaled-agile-approach-to-
transform-customer-exp.
40 “Business Transformation,” op. cit.
41 Ibid.
42 Ibid.
43 “‘This Email Confirms That your Current Position Will No Longer Exist,’” news.com.au, October 20, 2017,
accessed December 3, 2018, www.news.com.au/finance/business/banking/this-email-confirms-that-your-current-
position-will-no-longer-exist/newsstory/b785bb4c8ce15c36dc96737668de9db7.
44 “ANZ Bank’s New Ways of Working: Driving Transformation Company-Wide,” BrightTALK video, 9:22, posted by
“Ana Marinkovic Head of Transformation,” December 4, 2017, accessed December 2, 2018,
www.brighttalk.com/webcast/12821/294935/anz-bank-snew-ways-of-working-driving-transformation-company-wide.
45 Ibid.
46 “Business Transformation,” op. cit.
47 “ANZ Bank’s New Ways,” op. cit.
48 Ibid.
49 Angela Priestley, “Staff at ANZ Are Now in ‘Tribes’ and Attend ‘Ceremonies’: Is it too Much?,” smartcompany,
February 2, 2018, accessed November 27, 18,
www.smartcompany.com.au/people-human-resources/managing/staff-anz-now-tribes-attend-ceremonies-much/.
50 “BusinessTransformation,” op. cit.
51 Clancy Yeates, “ANZ Bank Restructure to Create '150 Start-Ups',” Sydney Morning Herald, September 10, 2017,
accessed November 27, 2018, www.smh.com.au/business/banking-and-finance/anz-bank-restructure-to-create-150-
startups-20170906-gybxr8.html.
52 Priestley, op. cit.
53 George Nott, “ANZ Pitches 'NWOW' Agile Approach to Employees as Roll-Out Begins,” CIO: Australia, August 21,
2017, accessed January 12, 2020, https://www2.cio.com.au/article/626245/anz-pitches-nwow-agile-approach-
employees-roll-out-begins/.
54 Fintech (financial technology) was a new industry that employed technologies (e.g., smartphone and
cryptocurrency) to improve or replace traditional financial activities. The industry consisted of both startups and
established companies, which tried to implement fintech solutions to improve and develop services to gain
competitive advantages.
55 Nott, “ANZ pitches 'NWOW',” op. cit.
56 “‘This email confirms,’” op. cit.
57 David Marin-Guzman and James Frost, “ANZ Restructure Raises Job Cut Fears,” Financial Review, July 31, 2017,
accessed December 4, 2018, www.afr.com/business/banking-and-finance/anz-restructure-raises-job-cut-fears-
20170731-gxme4t.
58 Ibid.
59 “ANZ Reports 2016 Full Year Result,” ANZ: Media Centre, November 3, 2016, accessed December 4, 2018,
https://media.anz.com/posts/2016/11/anz-reports-2016-full-year-result.
60 Ry Crozier, “ANZ Reveals the Good and Bad of its Agile Transformation,” itnews, April 8, 2019, accessed August
10, 2019, www.itnews.com.au/news/anz-reveals-the-good-and-bad-of-its-agile-transformation-523277.
61 Ibid.
62 ANZ, ANZ 2019 Half-Year Results, 5, March 31, 2019, accessed August 11, 2019,
https://shareholder.anz.com/sites/default/files/anz1h19_results_presentation_final_lodgement.pdf.
63 Chris Pash, “ANZ Bank Lifts Cash Profit 18% to almost $7 Billion,” Business Insider Australia, October 26 ,2017,
accessed January 14, 2019, www.businessinsider.com.au/anz-bank-lifts-cash-profit-18-to-almost-7-billion-2017-10.
64 Asha Barbaschow, “ANZ Bank Reports AU$6.4B Profit in Year of Reshaping,” ZDNet, October, 25 2017,
www.zdnet.com/article/anzbank-reports-au6-4b-profit-in-year-of-reshaping/.
65 Ibid.

66 George Nott, “ANZ Scaled Agile Roll Out to Reach 13,000 Employees this Year,” CIO: Australia, May 1, 2018,
accessed January 12, 2020, http://cdn.cio.com.au/article/670194/amazon-autogluon-automates-deep-learning-
devs/; Ry Crozier, op. cit.
67 Paul Scott, “Time Out on Agile—for Now,” Medium: Growthops, Ma
When to Use the McKinsey 7-S Model
You can use the 7-S model in a wide variety of situations where it's useful to examine how the various
parts of your organization work together.
The model categorizes the seven elements as either "hard" or "soft":
Hard Elements Soft Elements
Strategy Shared Values
Structure Skills
Systems Style
Staff
Strategy : Agile Transformation. to transform financial performance by building a simpler, better
capitalized, and better balanced bank
Structure : Spotify model. No hierarchy. NWOL.
System: New way of funding. to embrace digital technology to create a greater experience for people
and customers with the ability to build strong mutual trust and relationships
Shared values: NWOW
to use ANZ’s purpose and values to drive change and solve society’s challenges, strengthen
relationships with customers, and inspire people;
ANZ’s vision was to shape a business world where people and communities could thrive. This vision
would be achieved through fair and responsible banking, social and economic participation, and
sustainable growth.
The crucial elements in ANZ’s business were its new cultural values, which included integrity,
collaboration, accountability, respect, and excellence (ICARE).
Skills : To support the changes, ANZ organized teams to lead four streams of work—services,
connectivity, agility, and culture—with clear objectives and performance measurements.31
Style: NWOW + NWOL
Staff: 30% less. Look at Diverse mavericks section