ING: AN AGILE ORGANIZATION IN

A DISRUPTIVE ENVIRONMENT
Presentation by Syndicate 4:
Arifa Rizki Syaputra 29120549
Khalisa Nudiya H. 29120360
M. Raihan Iqbal 29120619
Nabilah Rofifah 29120491
Richardus Sanjaya W. 29120510
Company Background
ING was founded in the Netherlands in 1991 through a merger between companies
that had their origins in the 19th century: Nationale-Nederlanden, an insurance
company, and NMB Postbank Group, a bank.

ING’s Global Presence Market Leaders (Netherlands, Belgium, Luxembourg)

● Leading retail and wholesale banks in Benelux
● Evolving into “direct first” banks
● Improving operational excellence

Challenges (Germany, Austria, Spain, Italy, France, Australia, Czech Republic)

● Leading “direct first” banks
● Further integrating retail and wholesale banking capabilities
● Broadening lending capabilities

Growth Markets (Poland, Romania, Turkey, and Asia)

● Strong positions in fast-growing countries
● Evolving into “direct first” banks
● Developing digital leadership capabilities

Wholesale banking network and global franchises

● International network: > 40 countries
● Extensive international client base across all regions
● Global franchises
Disruption in the Financial Services Sector
● The financial services sector was undergoing a significant
transition as a result of the digital revolution. Customers' needs
in terms of banking product delivery and their connection with
banks were shifting. → The Dutch banking giant ING embarked on
such a journey in the summer of 2015, transforming its traditional
organization into a "agile" one influenced by companies like
Google, Netflix, and Spotify.
● Prior to the financial crisis of 2008, banks mostly built
shareholder value by using financial leverage. Digital revolution,
along with negative interest rates, higher regulatory requirements,
and competitive difficulties, forced banks to deleverage and seek
other sources of revenue a decade later. Consumers would have
greater input in how they interacted with financial providers
under a new value model that was emerging.
Business Issue
Should ING accelerate and
scale the initiative to other
business units, function, and
even countries or should it
pause and allow the
organization to absorb the
changes and capture learnings?
Implementing the agile way of
working and how fast to extend it to
other business units, but
● Some of the necessary agile
capabilities were not yet mature.
● The bank hasn't rolled out agile to
all units and departments globally,
gave rise to complex organization in
which agile methods and traditional
principles coexisted
Current ING’s Agility
Agile Implementation at ING
In 2012, the company's IT department began experimenting
with agile methods. ING opted to continue with the
organizational transformation of the Netherlands headquarters
in 2015, commencing with the complete deployment of agile
in the main areas of marketing, product management, channel
management, and IT development once these efforts proven
effective. This include:
● Reduce the number of employees in order to make the
company smaller and more efficient.
● In order to assess and match competence and skill set
to new responsibilities, current employees should
submit fresh applications for jobs inside the reformed
business.
● The Orange Code and connection with the company's
values are more important in evaluating employees
than technical skills and expertise.
The Building Blocks of Agile: Squads, Chapter, Tribes and Coach
Crucial Choices: The Future of Agile at ING
Tribe’s lead Herman Tange (Dutch)
● It was at this location (ING direct) that the bank began its digital revolution. Focused on
consumers with advanced digital skills and high-tech services.
● returned to the Netherlands (2012). Chosen as the Tribe Lead Cust Exp Business
Banking (2015), a group for marketing, product, and feature development for current and
new business customers has been. (15 teams, 650.000 customers and 1.2 billion euros in
income make up the tribe)
● "empowering individuals to keep a step ahead in life and in business" is the goal of agile
working. Took a moment to reflect on the current pace, achievements, and obstacles of
my trip so far.
Crucial Choices: The Future of Agile at ING
Restoring the Sense of Customer-centricity

● Herman was able to see for himself how ING's agile transformation had improved the company's competitiveness. To meet the
demands of its consumers, ING used digital technology in a way that allowed it to adjust its services and create an omni-channel
experience. In the past, ING employed a variety of IT platforms for its mobile app, internet, contact center, and branch locations.
● It was as a result that not all of the client data was easily accessible across all channels. The agile manner of working solved
these problems by putting app programmers and product development and marketing colleagues at the centre of each team.

Change Is Not for Everyone

It was believed that the agile working method would not be suitable for everyone at ING. In many cases, the loss of conventional
"command and control" capabilities was seen by many managers and senior managers as a demotion or a decline in their perceived
authority.
Crucial Choices: The Future of Agile at ING
Seeking Smart Efficiency

● Herman was keen to showcase the tribe's enhanced efficiency to the CEO as the most outstanding advantage. Every day, each
team met in front of a scrum board for stand-up meetings.
● Communication and alignment between team members were assured by the short meetings, which lasted around 10 minutes.

Resolving New Challenges

● Feedback loops with consumers, including user monitoring, i.e. clicks and hits, as well as comments in social media platforms,
created a lot of data.
● New consumer insights and a more data-driven product development firm may be achieved via better data use.
● The ability to entirely shift IT resources to a system that fully supported the agile organization.
Crucial Choices: The Future of Agile at ING
Leading Differently
● Following the adoption of an agile working methodology, employee
morale and commitment had skyrocketed.
● A flurry of uncertainty and layoffs accompanied the rapid adoption
of agile methods.

Hard Choices

The net results for the Netherlands rose by 54% from 2015 to 2017 in
comparison. A new manner of working introduced in the Netherlands,
according to Herman, was a major factor in these achievements. There
was disagreement, however, over the bank's next steps in implementing
an agile method of operating.
Hard Choices
Mandy Brouwer, Expert Lead Learning and Way of Working in the HR tribe.

● Implementing agility before all of the Netherlands' learnings have been transcribed and documented is a dangerous step. There is
hardly enough time to digest the changes caused by our agile transition. There are much too many reorganizations taking place,
and personnel are far too occupied.

Maarten van Beek.

● Without discipline in agile development, it will fail.

● Probably need to embrace additional procedures in the manner in which a firm such as Spotify does.
● Give consumers a sense of security and predictability with that level of discipline.

Bart Schlatmann Chief Operating Officer of ING.

● Agility needs a willingness to give up some of the most basic aspects of your existing method of doing things.
● It is necessary to go beyond your own business and to allow yourself to make errors and learn from them.
Does ING need to be
“AGILE”?

For every company, agility is not necessarily a prerequisite for long-term sustainability.
Some businesses may be characterized by a severe lack of adaptability,
notwithstanding their continued success.

Agile, on the other hand, will assist organizations in increasing efficiency and
productivity by using the organization's capacity to anticipate or react to market
developments by swiftly adjusting itself.

It is necessary for ING to do an external analysis, referred known as "Agility Driving

Forces," before implementing Agile in order to determine if the existing external
conditions are adequate for implementing Agile or not.
Global Marketplace
Competition in the global economy is fierce, particularly in the
banking sector. In order to get people to use their goods and/or
services, organizations must distinguish themselves sufficiently.
It was ING's competitiveness that pushed them to adopt Agile. As a
result of this transition, they were able to use digital to better meet
the demands of their clients and provide a more personalized
experience for those who use their services online.
Technology
Since they are already used to purchasing products and services
through the internet, an estimated 66,67% of European banking
clients say they want to be "self-directed" and "digitally proficient"
by 2019.
Agility Driving Forces
Disruptive Innovation
Fast-moving Fintech businesses and other disruptors were
acquiring a solid presence in financial services with an increasing
emphasis on customer experience and continual development. It is
essential that the company maintain its relevance and prevent
obsolescence by enhancing its adaptability, focusing on the needs
of its customers, and cutting costs.
A Market Society
To stay up with the market, Herman said that ING needs to remain
flexible. For example, clients' expectations in terms of ease and
connection were being redefined by their experience with non-
banking businesses.
Demographics
Customers in 2019 are anticipated to be self-directed, based on
their online buying and transactional behaviors, according to
current estimates of consumer demographics. Purchasing products
and services such as airline tickets and books through the internet
is one such example.
Agility Driving Forces
Can Competitive Advantage be Sustained?
ING aims to empower its customers by offering unique
experiences, such as simple and straightforward goods, products
that can be accessed at any time and from any location, and so on.
This competitive edge may be maintained if it adapts to the current
market trends and client preferences. They're not only focused on
what they have, but they also keep up with the latest market trends.
Competitive
Advantage
 Think Forward Strategy
The blueprint of digital banking leadership to suit
the customer’s current lifestyle, operational
excellence, emphasize customer experience, and
enhance performance culture
Orange code and RIO progr.
Launched in 2014, outlined values and behaviour
of ING employees. Striving for excellence in
delivering banking service across channel,
“redesign into omni-channel” (RIO program)
Stacey Matrix Analysis

We can deduce from the Stacey Matrix that

ING is situated somewhere between chaos and
certain decision-making; complicated
decision-making. Even while organizational
agility can be effective, according to Mandy
Brouwer, expert lead learning & style of
working in the HR tribe, applying it before all
learnings have been transcribed and
documented in the Netherlands is problematic.
There's barely enough time to assimilate the
information, and there are too many internal
reorganizations to complete.
Tararengkyu