Embracing Agility: Examining Agile Leadership in Effective Digital Transformation Initiatives

Abstract

Digital transformation is crucial for organizations aiming to stay competitive in today’s fast-paced business environment. The integration of digital technologies has proven essential for improving business performance. However, there is limited understanding of how different leadership styles influence the outcomes of digital transformation processes. To address this gap, this study builds on the practice-based view (PBV) to explore how managers in the banking sector can effectively lead these transformative processes. The interviews were conducted with 20 leaders from the banking sector in Saudi to gather valuable insights into this phenomenon.
The findings reveal how agile leaders drive successful digital transformation by promoting fast decision-making cycles, maintaining continuous involvement in digital transformation initiatives, and employing both evolutionary and revolutionary practices that make the organization leaner and more efficient. The deployment of agile leadership in these banks made employees feel more involved in the decision-making process, fostering a greater sense of ownership. This shift significantly boosted employee morale, as they began to feel more connected to the future direction of their organization. Therefore, agile leadership proves to be an effective approach for engaging employees in digital transformation efforts, ensuring a more cohesive and motivated workforce.