Explore how a strong organizational culture is becoming the crucial capability for companies to thrive in a fast-changing technological landscape.

Culture is the New Competitive Advantage

The world seems to be going at a million miles an hour - what's crazy  is that we are sitting in the calm before the storm. With AI amongst other technologies, we find ourselves at a n inflection point. To survive,  it’s essential for organizations to build a culture that genuinely cares for the customer. This customer-centric focus isn't just a nice-to-have; it’s fundamental for success.

Organizations with a deep commitment to their customers place a strong emphasis on core values like integrity. These values are crucial for transitioning from a centralized to a decentralized structure. Why is this shift so important?

Technology is advancing rapidly, making old strategies quickly outdated. In the past, companies could stay on top for extended periods by creating barriers to entry that kept competitors at bay. Those days are over. Markets have become more dynamic, and sticking to outdated strategies can lead to disruption and failure.

Innovation is no longer just a challenge; it’s a critical necessity. Companies must manage innovation effectively and continuously reinvent their value propositions to remain relevant. This requires empowering employees across the organization to make decisions.

A centralized approach, where decision-making is concentrated at the top, can’t keep up with the pace of change. Organizations that cling to this model risk falling behind. Centralized structures often struggle with innovation and adaptability, making them vulnerable to more agile competitors.

On the other hand, companies with a strong, customer-focused culture are better positioned to decentralize effectively. When employees are aligned with the company's values and empowered to make decisions, they prioritize the customer’s needs. This results in a more agile organization that can adapt and thrive in a rapidly changing environment.

In summary, for organizations to succeed today, they need to embrace a culture that puts the customer at the center. By focusing on core values and decentralizing decision-making, companies can innovate continuously and stay competitive in an ever-evolving market.

My Experience at ANZ Bank

At ANZ Bank, where I spent a decade as a Commercial Banker, the focus on customer centricity was more than just a strategy—it was deeply embedded in the organization’s culture. My experience at ANZ was marked by growth and alignment with core values, making it a standout example of customer-focused obsession. I rate their care for the customer a 10 out of 10, and here’s why.

About seven years ago, ANZ Bank began implementing significant organizational changes to enhance it's competitive positioning. This evolution started around 2018, following the Royal Commission, which prompted a major overhaul in their approach to employee incentives and rewards. Instead of traditional sales-based metrics, ANZ shifted focus towards customer mindset and alignment with company values - Integrity, Collaboration, Accountability, Respect and Excellence.

Under this new system, bonuses were replaced with benefits like an additional week of vacation, and commissions with extended paternity leave. Another major change was how performance was measured, moving from rewarding employees based on there sales outcomes to rewarding performance on how employees demonstrated the organisations values and care for the customer. The idea here is that ultimately, doing the right things by the customer and inline with ANZ's mission and value system, the sales numbers will organically manifest. It was a hard pill to swallow for many of the staff, however, in my opinion this was exactly the right approach. I disliked that the traditional system could tempt employees to act unethically at the detriment to the customer and company, and be praised for a job well gamed. 

At ANZ Bank, the shift towards a customer-centric approach wasn’t limited to changes in the remuneration system. The transformation extended deeply into the way we operated internally. ANZ embraced the Scrum methodology, integrating it into the organizational culture, right out to the front line.

Under this new model, we started by listing assumptions based on the information we had and applying theories to predict the outcomes of various activities. We then conducted experiments to test these assumptions. If the results didn’t meet expectations, rather than facing criticism, the team shared the failure openly.

Why? Because transparency in failure allowed us to learn collectively. By sharing these insights, other team members—regardless of their department—could avoid similar pitfalls in the future. This culture of openness and shared learning transformed ANZ from a large, traditionally slow-moving organization into one that thrives on continuous improvement and agile responses.

These changes not only reflected ANZ’s commitment to its values but the risk paid off and reinforced its position as the best employer in Australia with staff who felt good about what they did day in and day out. Adapting to these changes wasn't easy,  They embraced these challenges with resilience and readiness. Today,  having embedding a culture of values and care for the customer,  with learning and agility embedded into it's core, ANZ stands strong in the face of change.

Add to the discussion, share any of  your experiences with how you are preparing for what lies ahead. More on that another time.