New Evolutions in Strategic Planning that Drive Execution

Transcription

1 New Evolutions in Strategic Planning that Drive Execution Tuesday, June 27 4:00pm Presented by: Kevin Stang Strategic Advisor PLANSMITH Schaumburg, IL P: E:

2 It s in our name Help Banks Achieve Provide Objectivity Platform and Services

3 Strategic Planning Research Study 2016 PLANSMITH Research How Effective is your Execution? Strong 21% Weak 79%

4 Presentation Overview PURPOSE: EXECUTION 4 of 5 banks are weak at execution PLANSMITH Survey Results PROCESS: Knock down the barriers to execution PAYOFF: Compete, Earn, Grow Execution can lead to up to 50bp increase in ROA

5 Top 3 Barriers to Plan Execution 1. Lack of Customer Driven Strategies 2. Objectives: Too Many, Too Vague 3. Failure to Monitor and Adapt

6 Top 3 Barriers to Plan Execution 1. Lack of Customer Driven Strategies 2. Objectives: Too Many, Too Vague 3. Failure to Monitor and Adapt

7 Barrier # 1 to Plan Execution: Lack of Customer Driven Strategies Goal: Let the Customer Drive the Strategy Bank Driven: Budget is Created, then we decide how to spend it Customer Driven: Determine what the Customer wants, then try to fund it Problem: Planning Session is spent assigning costs instead of discussing customer needs

8 Barrier # 1 to Plan Execution: Lack of Customer Driven Strategies Example: Customer Driven Strategy Yellow Circle = Low Income Red Circle = High Income Both Locations have same volume of lobby traffic, and # of employees Red Circle = 2X Potential, but higher demands on service Strategy: Add New FSR at the Red Location Image Taken from Plansmith StrategyGPS Cloud based Planning Tool

9 Core Values Barrier # 1 to Plan Execution: Lack of Customer Driven Strategies BENEFIT: Focus on the 4 Levers of Strategic Planning Strategy Must Balance: Customer, Internal Capabilities, People & Culture and then Financial Vision SWOT, Situational Analysis Customer Internal Capabilities People and Culture Objectives and Goals Financial Core Values Playbook of Strategies Mission

10 Barrier # 1 to Plan Execution: Lack of Customer Driven Strategies Example: 4 Key Levers of Strategic Planning Customer Internal Capabilities People and Culture Financial FOCUS Understand Customers Needs Seamless Flow of Business Make it a Great Place to Work Drive Earnings RESULT Deepen Relationships Greater Share of Wallet, Channel Adoption Staff AND Customer Satisfaction Improved Margins, Non- Int. Inc., ROA

11 Barrier # 1 to Plan Execution: Lack of Customer Driven Strategies DISCUSSION: How to stay focused with so many pieces? Excel Flip Charts Cloud Sticky Notes Chalkboard

12 Top 3 Barriers to Plan Execution 1. Lack of Customer Driven Strategies 2. Objectives: Too Many, Too Vague 3. Failure to Monitor and Adapt

13 Barrier # 2 to Plan Execution: Objectives: Too Many, Too Vague DISCUSSION: Do s and Don ts when Creating Objectives Allocate Resources? Cram Ideas into a weekend retreat? Prioritize and Shrink List? Quantify Alternatives?

14 Barrier # 2 to Plan Execution: Objectives: Too Many, Too Vague BENEFIT: Evaluate Risks Did you test scenarios? % Indicated Yes. 100% Strong Weak 70% Example: What will it take to get a return on mobile deposit capture? Product Sales Retention Cross Sales New Customers Competitive Advantage Competitive Disadvantage Disintermediation Saying we can t is easier than saying we can Strong Weak

15 Barrier # 2 to Plan Execution: Objectives: Too Many, Too Vague BENEFIT: Preparation and Collaboration Planning Session Time Pre-Planning Time Poor Time Budgeting Gather Ideas Prior to Session

16 Barrier # 2 to Plan Execution: Objectives: Too Many, Too Vague DISCUSSION: Benefits of Pre-Planning Exercises Ownership Better Ideas. Thoughtful Ideas

17 Top 3 Barriers to Plan Execution 1. Lack of Customer Driven Strategies 2. Objectives: Too Many, Too Vague 3. Failure to Monitor and Adapt

18 Barrier # 3 to Plan Execution: Failure to Monitor and Adapt BENEFIT: Track Plan and Meet Quarterly Automate / Virtual Coach Commitment Maintain Flow

19 Barrier # 3 to Plan Execution: Failure to Monitor and Adapt DISCUSSION: When to Make Course Corrections On Track but not seen in Results Competition Changes Staffing Changes

20 Summary 1. Lack of Customer Driven Strategies Strategy Must Balance Customer, Internal Capabilities, and People/Culture, Financial Utilize technology to organize all pieces of the house 2. Objectives: Too Many, Too Vague Pre-Planning brings Preparation and Collaboration Evaluate Risk to bring more Customer-Centric Strategies 3. Failure to Monitor and Adapt Track your plan and meet quarterly to review Act quickly to make course corrections

21 Please Visit and learn more about our Strategic Planning Software and Coaching Services Presented by: Kevin Stang Strategic Advisor PLANSMITH Schaumburg, IL P: E: