Collaborative Leadership in Action: Elevating Customer Communications

How can companies stay ahead in the fast-moving digital landscape while enhancing their customer communication? The key is fostering collaborative leadership, a vital force in driving impactful, sustainable change in today’s competitive environment.

As businesses navigate demographic shifts and technological advancements, the need for effective digital communication strategies has never been more apparent.

We spoke with Poppy Achilles, Co-Founder of Accelerator Labs, to explore how companies can successfully rally customer communications change through collaborative leadership and strategic initiatives.

The Driving Forces Behind Digital Transformation

Digital transformation is reshaping how businesses communicate with customers, driven by key factors that necessitate change.

From Regulatory Compliance to Demographic Shifts

Historically, transformation projects in the financial services sector have been driven by regulatory requirements.

Initiatives like the Retail Distribution Review (RDR) and the Markets in Financial Instruments Directive (MiFID) compelled firms to mobilise and adapt.

"Digitisation allows you to scale efficiently as opposed to recruiting more real human people."

— Poppy Achilles, Co-Founder of Accelerator Labs

However, the current wave of digital transformation is propelled by demographic changes.

The rise of digitally native generations—those who have grown up with the internet and mobile technology—means that customers now expect seamless digital experiences.

Investors want their providers to offer digital experiences on par with leading born-digital companies.

This sets a high bar for financial services firms traditionally rooted in legacy systems.

Aspiring to Be the "Apple of Financial Services"

Companies are now aiming to deliver customer experiences comparable to tech giants.

"Firms should be setting the vision of being the Apple of financial services."

— Poppy Achilles, Co-Founder of Accelerator Labs

This ambitious goal encourages businesses to innovate and rethink their approach to customer communications, aiming for simplicity, efficiency, and engagement.

According to Kentico, adopting a customer-centric approach similar to Apple can significantly enhance customer satisfaction in the finance sector.

The Importance of Leadership in Driving Change

Effective leadership plays a pivotal role in guiding organisations through digital transformation.

Top-Down Commitment and Mobilising the Right Team

For successful transformation, leadership must champion change from the top.

Leaders are responsible for authorising change, allocating resources, and being accountable for outcomes.

Their commitment signals to the entire organisation the importance of the initiative.

"If it's not championed by those at the very top, staff just don't buy into it."

— Poppy Achilles, Co-Founder of Accelerator Labs

However, leadership alone isn't enough.

Only 27% of employees agree that their leadership is trained to lead teams through change.

This highlights the necessity for leaders to be adequately prepared to guide their teams effectively.

Assembling a dedicated team is crucial.

This involves selecting individuals across departments who can contribute effectively to the project.

Clear roles and responsibilities, along with strong communication, ensure that everyone understands their part in the transformation journey.

"Change is change. It doesn't matter how big the organisation is. Communication is key."

— Poppy Achilles, Co-Founder of Accelerator Labs

Despite this, 70% of change initiatives fail, and only one-third fully meet organisational goals.

A significant factor is that 51% of managers and employees say leaders do not outline clear success metrics for change.

This underscores the importance of clear objectives and success criteria from the outset.

Overcoming Challenges in Change Management

Navigating the complexities of change management requires addressing common obstacles that hinder progress.

Resistance to Change and the Role of Communication

Change often meets resistance, whether from leadership or staff. Addressing concerns transparently and involving all stakeholders can mitigate resistance.

Effective communication is the linchpin of successful change management.

"People want to be told what's going on and have the opportunity to vent frustrations and ask questions."

— Poppy Achilles, Co-Founder of Accelerator Labs

However, communication gaps are common.

According to Firstup, 29% of employees say change isn't communicated clearly in their organisation, and 28% do not receive necessary information about change.

Regular updates and open dialogues help keep teams aligned and engaged, reducing uncertainty and building trust.

Furthermore, organisations employing leaders with different leadership styles attain mixed results on transformation journeys.

A study from the Journal of Business Research indicates that digital transformational leadership and organisational agility positively influence digital transformation.

Transformational leaders can promote organisational agility through relationship building and encouraging innovation.

Creating Meaningful Digital Customer Experiences

To meet evolving customer expectations, businesses must move beyond traditional methods and embrace innovative solutions.

Beyond Digitising Paper Processes

There is a significant difference between merely digitising existing documents and creating engaging digital experiences.

Simply converting a lengthy document into a PDF does not enhance customer engagement.

Instead, interactive and user-friendly platforms are needed to truly meet customer expectations.

"Are you really thinking about the customer, or are you just making paper digital?"

— Poppy Achilles, Co-Founder of Accelerator Labs

Embracing innovative solutions can lead to better customer satisfaction.

For instance, FinTech Magazine highlights that digital collaboration in banking could generate new value of $30 billion or more.

Platforms that enable digital collaboration can reduce customer onboarding costs by 15% and time by 20% in banking.

Embracing Innovation Through Collaboration

Technology vendors and businesses must work together to design solutions that truly meet customer needs.

This collaborative approach can lead to more effective and satisfying customer communications.

"Maybe the vision for this needs to come from the businesses using the technology rather than the technology vendors themselves."

— Poppy Achilles, Co-Founder of Accelerator Labs

Companies with more diverse teams are 27% more likely to outperform peers in innovation.

Empowering employees and encouraging collaborative leadership can increase customer satisfaction scores by up to 10%, according to Gallup.

Preparing for the Future of Digital Communications

As technology continues to evolve, organisations must prepare to adapt and thrive in the changing landscape.

Adapting to Rapid Change and Upskilling the Workforce

The digital world evolves quickly, necessitating agile teams comfortable with constant change.

Organisations must foster a culture that embraces adaptability and continuous learning.

"It requires a big shift in how people approach work and the skills they will need going forward."

— Poppy Achilles, Co-Founder of Accelerator Labs

Investing in employee development is essential for sustaining digital transformation efforts.

Resources like the Financial Services Skills Commission offer valuable tools for upskilling teams in both technical and behavioural competencies.

Moreover, with estimates that 10–25% of work across bank functions will be carried out by machines in the coming years, the need for a skilled workforce to manage and collaborate with digital tools is paramount.

In Summary

Collaborative leadership is essential for elevating customer communications in today's digital age.

By setting ambitious visions, mobilising dedicated teams, and fostering a culture open to change, businesses can create meaningful digital experiences that meet evolving customer expectations.

Effective leadership, clear communication, and employee empowerment are key drivers in successful organisational change and improving customer experiences.

References

State of the Connected Customer Report, Salesforce, 2022

Why 70% of Organizational Change Efforts Fail, Wits University

Organisational Change Management Statistics, Changing Point

Digital Transformational Leadership, Journal of Business Research

7 Reasons Why Communications Is the Key to Digital Transformation, Firstup

Impact of Collaborative Leadership on Customer Satisfaction, Voltage Control

Why Banks Need Customer-Centric Digital Collaboration, FinTech Magazine

Financial Services Skills Commission

Seven Digital Trends in the Finance Sector in 2023, Kentico

Reviewed By:

Sabrina McClune, 10.10.24

Sam Kendall, 10.10.24