Leading legacy institutions through a successful transformation

Thank you for joining the Ross Republic podcast. In our forty-fifth episode, your host Adrian Klee is joined by Anna Werntoft, an independent advisor and ex-CTrO at Ikano Bank, to explore how legacy institutions can achieve successful turnaround and transformation programs.

RR Podcast #45

Together with Anna Werntoft, independent advisor, board member and ex-Chief Transformation Officer at Ikano Bank, we explored the complexities of transformation—specifically, how large-scale changes impact technology, culture, and customer experience. In the podcast, we delve into key insights from Anna’s leadership during Ikano Bank’s transformation journey. Her role offers a rich case study in how to navigate both the challenges and opportunities of transforming legacy banking systems into agile, customer-centric operations.

Transformation vs. adaption

When businesses are constantly in a state of transformation, the term itself can lose its significance. During our conversation, Anna and I agreed that true transformation represents a fundamental shift in an organisation’s operating model—one that impacts all levels and is often triggered when technological and organisational debt reaches a critical point, severely hindering the company’s ability to compete. In contrast, operational improvements and incremental innovation should be ongoing, integrated into the organisation’s daily processes.

The banking sector, particularly in Europe, is facing increasing pressure from high operating costs, regulatory changes, and rising customer expectations. For Ikano Bank, as with many others, incremental adjustments were no longer enough—a full-scale transformation was required. Ikano Bank’s experience mirrors a broader trend in financial services: transformation must be proactive, not reactive. As Anna highlighted, organisations that wait for a crisis to initiate change often find themselves struggling to catch up. Instead, legacy banks should embed continuous organisational improvement and innovation into their core operations, ensuring they remain agile and competitive in a constantly evolving landscape.

Rethinking the operating model

One of the biggest challenges Anna faced was reimagining Ikano Bank’s operating model across its eight markets. The bank’s legacy systems, typical of many traditional financial institutions, had become a barrier to efficiency. As Anna explained, the initial trigger for the transformation was technology—specifically, the need to modernise an outdated tech stack. However, it soon became clear that changing the technology alone wouldn’t be enough.

Anna’s leadership emphasised a holistic approach to transformation. The bank’s governance, processes, and team structures all needed to evolve alongside the technology. This comprehensive rethinking of the operating model was key to ensuring that the transformation would deliver long-term value, not just short-term fixes.

Culture as a transformation enabler

A major theme of our discussion was the critical role of culture in any transformation effort. As Anna and I explored, cultural alignment is often the overlooked but essential ingredient in driving change. Ikano Bank, with its strong entrepreneurial spirit inherited from its IKEA roots, had an advantage: This culture of innovation and adaptability helped smooth the transition to new technologies and ways of working.

However, Anna also acknowledged the challenges of integrating new talent—particularly those with digital and agile expertise—into a traditional banking environment. To manage this friction, she focused on clear communication and fostering a shared vision across the organisation. By aligning everyone around the ‘why’ of the transformation, Anna ensured that teams from different backgrounds could collaborate effectively.

Integrating ESG into the transformation

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