CHALLENGES AND RISKS OF IMPLEMENTING INNOVATIVE PROJECT MANAGEMENT APPROACHES IN UZBEKISTAN’S BANKING SECTOR

Аннотация

The banking sector is increasingly adopting innovative project management methodologies such as Agile, Scrum, and Lean to support digital transformation and improve agility. Yet, banks in emerging markets face specific challenges. This study analyzes managerial risks of adopting modern project management in Uzbekistan’s banking sector amid ongoing reforms and digitalization. Using literature review and qualitative surveys, the research identifies key barriers: cultural resistance, regulatory constraints, lack of skills and resources, and rigid legacy systems. Findings show that while Agile and Lean can enhance efficiency and customer focus, their implementation is limited by hierarchical culture, low awareness of frameworks, strict compliance demands, and outdated infrastructure. The discussion links these issues to global experience and proposes recommendations for managers and policymakers to enable agile transformation in a regulated transition economy. Overcoming these challenges is vital for Uzbekistan’s banks to unlock digital potential and remain competitive in a rapidly changing financial sector. Keywords: Project Management; Agile; Scrum; Lean; Banking Sector; Digital Transformation;Uzbekistan;Organizational Change;RegulatoryCompliance Introduction. The global banking industry is undergoing rapid transformation driven by digital innovation and evolving customer expectations. To keep pace, banks increasingly adopt modern project management approaches such as Agile, Scrum, Kanban, and Lean. These methodologies, originally popular in software development, are now gaining traction in financial services as tools forenhancing flexibility, efficiency, and customer orientation. Agileemphasizes iterative development, cross-functional collaboration, and adaptability, while Lean focuses on eliminating waste and improving processes. Together, they promise faster delivery of digital products, operational improvements, and thefostering ofinnovation cultures. Despite these advantages, banks have been slower than other industries in adopting such methods due to their size, complexity, hierarchical structures, strict regulatory frameworks, and risk-averse cultures. Implementing Agile and Lean is not merely a process change but a cultural and managerial transformation, requiring leadership support, organizational restructuring, and mindsetshifts. In Uzbekistan, these challenges are particularly relevant. As a transition economy, the country has undertaken broad reforms in its banking sector since 2020, including privatization of state-owned banks, modernization initiatives, and alignment with international regulatory practices. The national “Digital Uzbekistan” agenda has further accelerated the push toward digital transformation, prompting banks to invest in new technologies, financial products, and partnerships. Some banks in Uzbekistan have begun experimenting with Agile and Lean in digital transformation programs, establishing project management offices and introducing iterative methods. Early experiences suggest gains in transparency and reduced time-to-market. However, significant obstacles remain: entrenched hierarchical cultures, limited familiarity with Agile https://ijmri.de/index.php/jmsi volume 4,issue5,2025 328 principles, resistance withincompliance functions, and outdated legacy systems. This context highlights a clear research gap. While extensive studies exist on Agile adoption in software firms and Western banks, there is little research on its application in post- Soviet or emerging market banking systems. The unique combination of reform, regulatory transition, and traditional organizational culture in Uzbekistan creates a distinctive environment forexploringtherisks and challenges ofintroducing modern project management. This study addresses these issues by examining the managerial challenges and risks associated with implementing Agile, Scrum, and Lean approaches in Uzbekistan’s banking sector. Drawing on a literature review and qualitative data from industry practitioners, it identifies the primary barriers to adoption and assesses their implications. The contribution lies in offering insights for bank executives and policymakers on how to align modern project management practices with regulatory requirements, overcome cultural resistance, and foster organizationalconditions for successful transformation. Methods. In preparing the article, such research methods as the method of horizontal and vertical analysis, the formal-logical method, the method of scientific abstraction, and econometric analysis were used. Results. The study reveals that organizational, cultural, and regulatory factors significantly hinder the adoption of Agile, Scrum, Lean, and similar project management methods in Uzbekistan’s banking sector. Despite strong interest in modernization, several persistent challenges remain. 1.CulturalandOrganizationalResistance Uzbek banks operate with hierarchical, bureaucratic, and siloed