ABU DHABI ISLAMIC BANK LEADERSHIP STRATEGIES

1. Introduction

Leadership strategies are crucial for guiding organizations through challenges and driving them toward their goals (ADIB, 2024). This study evaluates ADIB's leadership strategies and their impact on organizational effectiveness. It covers the assessment of various leadership models, the effectiveness of digital transformation initiatives, and the role of AI in overcoming challenges. Recommendations will focus on enhancing team performance, improving employee engagement, and driving sustainable growth.

2. Evaluation and analysis of leadership strategies and approaches

2.1. Leadership Approach of ADIB

The current CEO of ADIB is Nasser Abdulla Al Awadhi and he too practices transformational leadership in Abu Dhabi Islamic Bank (ADIB). This style is defined by his capacity to mobilize people for change, encourage them to innovate, and advance beyond measure (ADIB, 2024). The described leadership of Al Awadhi implies the encouragement of organizational flexibility that helps the bank both to develop strategies for new advantageous positions and to implement them into practice when the tendencies in the sphere of Islamic finance are rather active. It is about digital transformation, understanding customer needs, and creating products that are sustainable; all those objectives resonate well with Islamic finance and are, therefore, conducive to ADIB's development. Since Al Awadhi took over the leadership in ADIB, the organization has achieved much in the area of digitalization. Embracing technologies like Artificial Intelligence and facial recognition, ADIB empowers the customers, increases efficiency, and devises security. One of the strategic focuses of the bank is, therefore, digital innovation to meet the needs of the new clientele base. Through such operations, Al Awadhi aims at the new generation and it initiated an online-only banking operation known as Amwali for the youthful generation (ADIB, Sustainability, 2020). This strategy enables young customers to have good financial management; and provides them with financial products and services hence, designing a longterm relationship with the bank and creating a new market segment. Alliance and affiliation form part of the strategic frameworks within the bank under the Al Awadhi administration. This allows the bank to continue serving customers while responding to changes in the financial system due to fintech sharpened by partners from the government. These collaborations improve the services that ADIB provides and help in meeting the regulatory conditions. Sustainability and ESG commitment are fully integrated into ADIB's plans with significant spending on renewable power sources and compliance with global ESG benchmarks. The goals that Al Awadhi addresses are not only APGs but also help in achieving the Abu Dhabi Economic Vision 2030, making explicit the efforts of the bank towards responsible banking. This is especially the case because the GTB team under the leadership of Al Awadhi constantly explores ways of extending services to meet clients' demand without violating relevant regulations. This approach ensures that ADIB provides the clients with state-of-the-art products and services, in order to keep confronting the market challenges.

2.2. Critically evaluating leadership strategies to be implemented

Combining a transactional leadership process could add to the development of more stability and sustainability of the bank in the long run (Budur & Poturak, 2021). Transactional leadership is characterized by set goals, work assignments, and a well-defined organizational structure that involves the use of reward power to influence employees. Hence, this leadership style can help in improving the efforts of the ADIB in achieving short-term goals and objectives while at the same time being forward-looking in its strategic goals. The long-term solution is the culture of individual and company learning and development, where the employee is supported and enabled to learn new skills and to prepare for new technologies. This approach will help to ensure that ADIB keeps up with trends practiced in the industry thus guaranteeing it a competent employee (Farhan, 2024). Making data analytics and artificial intelligence key components of the business strategy can bring more detail to customer behavior and market patterns and help to make proper decisions, foresee customers' needs, and create solutions that would make customers happier and more loyal to ADIB. Risk management and compliance are relatively good pillars that should be built and developed at ADIB to protect the bank and its shareholders from uncertain changes in the regulation and the market. Providing feedback and incentives, creating a culture that empowers the employees, and rewards them, provides the staff with challenging career paths increases the satisfaction level of the employees, and boosts general organizational performance. Furthermore, there is an opportunity to enhance ADIB's commitment to the stakeholders through increasing the number of community engagement and socially responsible programs. , thus contributing to the improvement of the social well-being of the community and by extension the bank's stakeholders, if the projects in which the bank invests are adopted into the community development projects and those of the locals; In combination with the transactional leadership model, all these leadership approaches can help to build a positive work culture and organizational performance at ADIB, actively respond to the competitive environment and market challenges, and ultimately, ensure the company’s success and sustainability (Weller, Evanschitzky, & von Wangenheim, 2020). Therefore, it is for the same reasons that the outlined strategies could open the doors to growth and sustainability for the long term within the organization.

3. Leadership models and approaches and the challenges involved in the implementation

3.1. 5 models and approaches suitable for implementation

The Drexler-Sibbet Team Performance Model

Drexler-Sibbet seven stage team performance model can be implemented to improve team performance at ADIB, especially in terms of gender equality in the recruitment, training, and development process (Suherni, Wahyudin, & Gunawan, 2023). Returning to the questions this paper was considering, it can be suggested that by paying more attention to orientation and trust-building, managers secure the environment.

Katzenbach and Smith's model

Katzenbach and Smith's model can help ADIB in abetting gender-related imbalance and improving team outcomes considerably. In this case, instead of limiting the practices to the hiring of female employees, ADIB needs to strive to change the status of a pseudo-team to that of a high-performance team, so that all potential workers, including women, are engaged. Mandatory group work product creates balance in the distribution of talents, skills, knowledge, and experiences.

GRPI model

The application of the GRPI model will enhance the degree of understanding and management of the development programs and activities at a team level within ADIB. Through setting goals, the model also guarantees that all the people involved in the development will have the set objectives at their fingertips and hence become more active in their development (Alkaabi & Ab Rahman, 2022). Increased clarity also enables the employees to view the aspects of their responsibilities in the team activities.

Lencioni Model

In ADIB, the Lencioni Model could promise to build more trust among employees in order to foster their engagement with developmental programs as well as reconcile several core issues that hurt team performance (Akdere & Egan, 2020). In addressing the key lack of trust the model enhances employee relations and promotes an organizational culture that is receptive to team and individual needs. Managing the fear of conflict guarantees that there is a healthy practice of conflict and advocacy of change and creativity.

T7 Model

The T7 Model can handle dysfunctions and empower the teams at ADIB if the center

pinpoints both the external and internal components relevant for successful team performance.

Thus, with regard to thrust, the model helps to maintain the unity of the team’s direction at the

level of shared goals.

3.2. Assessment of implementation challenges of the models

One possible weak point in ADIB is that the Drexler-Sibbet Team Performance Model may be too time-consuming. A time and resource-consuming effort is needed to follow the seven stages to have a transition from orientation to high performance. Weaknesses of the Katzenbach and Smith Model might be associated with the appositeness of the model to major groups or those that are situated in different locations. Its usability is best in settings where the working parties are more compact and closely-knit, capable of assembly on a focal basis, and where face-to-face contact is feasible (Farhan, 2024). It might be difficult, thus, to implement this model for larger teams located in different places at ADIB because of the larger number of people in those teams. The GRPI Model may lead to struggle due to the fact the assessment is cross-sectional or at a given moment in time rather than capturing different moments in time in the life cycle of the team. The positive thing with the model is that in a constantly changing organizational setting such as ADIB for instance teams and challenges change dynamically in the institution. The Lencioni Model could prove problematic in ADIB given that is based on dysfunction, whereby, at first glance, it would only draw attention to the problems in the organization without offering clear solutions. The five dysfunctions involve a radical transformation of the paradigm of work and organizational culture that is hard to implement and can evoke either resentment or mild distress in the people. Challenges that might limit the implementation of the changes from the T7 Model in ADIB include a tendency of internal strengths such as trust and talent to have development dependencies on external situations like the team leader appointment and organizational support. As might not be easily addressable in a large and complex system such as ADIB.

4. Development of Proactive Leadership Strategies and using AI to Solve Leadership Challenges

4.1. Development of Practical Strategies for meeting uncertainties and global challenges Create a Resilience-Driven Culture

ADIB could create awareness and build a resilience culture within it by creating training on mental resilience, flexibility, and handling problems (Cheng & Zhou, 2023). Managers have to create proactive resilience programs to prepare workers for failure and show that change is a strength. Forcing the issue of resilience throughout the company, ADIB would buffer its workforce and secure its organizational performance against change and shift market forces, which produces a more agile and sustainable organization.

Implement Scenario Planning and Forecasting

There is also a need for the ADIB to ensure that adequate resources are spent on research and development mainly on unique technologies and trends in the market (Suherni, Wahyudin, & Gunawan, 2023). This is achieved by either setting up innovation labs or incorporating research centers to tap into new ideas that the bank has not ventured in. R&D expenditure will enable more innovations to be developed and implemented for the bank.

Invest in Future-Oriented Research and Development (R&D)

There is also a need for the ADIB to ensure that adequate resources are spent on research and development mainly on unique technologies and trends in the market. This is achieved by either setting up innovation labs or incorporating research centers to tap into new ideas that the bank has not ventured in. R&D expenditure will enable more innovations to be developed and implemented for the bank thus putting the bank in a better standing to adapt to new changes within this fast-growing market thus increasing the bank's growth capacity.

Adopt Decentralized Decision-Making

ADIB could implement decentralized decision-making in order to empower different teams at the bank. It is by decentralizing authority level through frontline managers and employees that the bank can fast-track decision-making to harness local knowledge. Such an approach enables the staff to feel more committed and therefore likely to proactively perpetuate change and bring about efficiency.

4.2. Use of AI to resolve leadership challenges

Enhanced Decision-Making and Predictive Analytics

The COVID-19 pandemic also presented ADIB with problems of decision-making in an uncertain environment while dealing with large amounts of data (Purwanto, 2022). This can be done by AI because of its capability to process big amounts of data in a short time and give forecasting and valuable information. This enables those in leadership positions to predict the markets and the customers thereby being in a better place to make decisions.

Improved Customer Engagement and Personalization

It was a major challenge for ADIB to reorganize numerous calls from customers, let alone in rush hours or emergencies, while, at the same time, delivering personalized services. The following are some benefits of AI in engaging its customers: AI can employ the use of Chabot and virtual assistants to make responses to inquiries possible and timely at all times.

Bias Detection and Inclusive Hiring Practices

In traditional hiring, ADIB faced challenges of CAB where bias potentially distorted the diversity and equity of candidates. AI can assist by designing bias mitigation algorithms that review and improve job descriptions and selection (Weller, Evanschitzky, & von Wangenheim, 2020). This helps in making fair recruitment decisions so as to admit culturally diverse employees as well as encouraging equality within the job market.

Crisis Management and Resilience Building

ADIB had inadequate crisis response and made little progress in readiness and recovery in the case of disruptions. This can be done using AI in the following ways: this involves creating a number of crisis models to draw realistic risk management contingency plans and analyzing realtime data to look for early indications of emerging issues (Alkaabi & Ab Rahman, 2022). Similarly, these AI tools boost the capability of the bank to respond to emergent crises and recover swiftly thus sustaining the stability of the business.

5. Conclusion and Recommendations

It is recommended that ADIB should use AI for the enhancement of the customer offering, as well as for optimizing operations. Adopting smart and higher artificial intelligence will assist the bank to gain competitive capabilities to meet customer needs, and optimize processes. As for the second recommendation, the dimension of team dynamics and reinforcement of inclusiveness in teams ADIB should widen the prerequisite of training and development. By conducting focused workshops and providing long-term and efficient guidance to the employees, the organization will improve the 'participation ratio' and employee satisfaction ratio. To avoid the shift from digitally innovative to customer-intimate focusing, ADIB should commence progressive development of online services while concentrating on its branches as important suppliers of individually customized services.

In conclusion, leadership models such as Drexler-Sibbet, Katzenbach, and Smith models, ADIB could work for the success and to increase the employee participation and reduce dysfunctions of the teams. It was found that Artificial Intelligence could increase the effectiveness of decision-making and organizational performance as well as enhance the future readiness of the given enterprise.

 

References

ADIB. (2024). ADIB. Retrieved from https://www.adib.ae/en: https://www.adib.ae/en/pages/personal.aspx

ADIB, Sustainability. (2020). Sustainability Report. Retrieved from https://www.adib.ae/: https://www.adib.ae/en/pages/adib_sustainability.aspx

Akdere, M., & Egan, T. (2020). Transformational leadership and human resource development: Linking employee learning, job satisfaction, and organizational performance. Resource Development Quarterly, 31(4). Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1002/hrdq.21404

Alkaabi, M. K., & Ab Rahman, Z. (2022). A Literature Review on the Impact of Work Environment, Leadership Styles and Resilience on Job Performance in UAE. Retrieved from https://pnrjournal.com/index.php/home/article/download/2199/1893

Budur, T., & Poturak, M. (2021). Transformational leadership and its impact on customer satisfaction. Measuring mediating effects of organizational citizenship behaviors. Retrieved from https://www.researchgate.net/profile/TaylanBudur/publication/343696526_Transformational_leadership_and_its_impact_on_custom er_satisfaction_Measuring_mediating_effects_of_organisational_citizenship_behaviours/ links/636fdd3354eb5f547cc879e9/Transformationa

Cheng, P. L., & Zhou, L. (2023). Transformational leadership and emotional labor: the mediation effects of psychological empowerment. International journal of environmental research and public health, 20(2). Retrieved from https://www.mdpi.com/1660- 4601/20/2/1030/pdf

Farhan, B. Y. (2024). Visionary leadership and innovative mindset for sustainable business development. Case studies and practical applications. Research in Globalization, 8. Retrieved from https://www.sciencedirect.com/science/article/pii/S2590051X24000285

Purwanto, A. (2022). The Role of Digital Leadership, e-loyalty, e-service Quality and esatisfaction of Indonesian E-commerce Online Shop. International Journal of Social and Management Studies, 3(5). Retrieved from https://www.ijosmas.org/index.php/ijosmas/article/download/180/132

Suherni, E. S., Wahyudin, A., & Gunawan, A. (2023). Analysis of Adaptive and Participatory Leadership Models Study of Educational Institutional Leadership Models. Journal of Educational Analytics, 2(4),. Retrieved from https://journal.formosapublisher.org/index.php/jeda/article/download/6732/6932

Weller, I. S., Evanschitzky, H., & von Wangenheim, F. (2020). Transformational leadership, high-performance work system consensus, and customer satisfaction. Journal of Management, 46(8). Retrieved from https://journals.sagepub.com/doi/pdf/10.1177/0149206318817605