Fit for Growth in Financial Services Organisations

Practical lessons from Asia and Australia

The financial services industry across the world – from Japan to Australia and South East Asia, to Europe and the Americas – is under threat from a number of factors.

Strategy&’s experience in working with large, complex financial services organisations across developed and developing markets in the Asia-Pacific region has shown us that, for a financial services organisation to combat these threats and transform successfully, its leadership team must do five things:

  1. Be collectively aligned as a leadership team on the problems that must be solved, and what can be traded off in order to solve them – then have the courage to make the big decisions.
  2. Know which capabilities will help the company to differentiate itself, which ones to over-invest in, and which ones are superfluous. This helps them link together strategy, capabilities and costs.
  3. Deeply understand the organisation – not just its unique capabilities and structure, but also the activities and interdependencies that contribute to its cost base. This allows leaders to clearly identify ‘good’ and ‘bad’ activities and their effects on costs.
  4. Make sure the organisation is ready for change. This is particularly important at the early stages of the process.
  5. Recognise that updating an operating model involves not only changing structures and processes – it also means redesigning the business to encompass formal and informal levers of an operating model (as defined in Fit for Growth).

By starting at the right place, and following the steps set out in this paper, your company can transform itself, using the Fit for Growth approach.

Contact us

Eduardo Arnoni

Partner, Strategy&, PwC Australia

Tel: +61 3 8603 0896

Mukund Rajan

Director, Strategy&, PwC Australia

Tel: +61 2 8266 3693

Peter Burns

Partner, Consulting Financial Services Leader, PwC Australia

Tel: +61 2 8266 4726

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