In the last post, we discussed the responsibilities and planning software opportunities of the Asset Liability Committee (ALCO), Investments/Funds Management, and the CFO. This post will address the role of the Community Bank's Branch/Department Managers, the Marketing Department, and the CEO/The Board.

Branch/Department Managers:

Responsible for executing tactics outlined in the marketing plan for the acquisition and allocation of the financial resources at an acceptable level of operating expense.

Branch managers should utilize reports that indicate the budget/plan execution for the year and most importantly the company action plans on the desired execution.  Performance tracking is highly needed for the branch manager to communicate objectives and make course adjustments throughout the year.

The Marketing Department:

Responsible for developing effective strategies to compete for gathering of funds and making loans.

The marketing manager is often overlooked in the planning process and yet they are a key contributor to how and how much of the company’s resources will be used to pursue a strategy. New product development, pricing, anticipated growth, imbedded customer options, fees as well as promotional cost are all part of a full simulation. Ultimately choosing the strategy that optimizes the combination of growth and earnings.

The CEO and Board of Directors:

Responsible for providing direction and leadership, setting policy, determining goals and monitoring progress.

A planning model has to assist management to determine corporate strategies that obtain collaborated goals agreed on by the board of directors. Consolidated information regarding the current company status as well as its potential long-term direction must be easily conveyed across a diverse group of people. At the same time, senior management must have the capability to drill down easily to investigate strengths and weaknesses within its plan as it applies to the organizations current environment.

In conclusion, a planning system should be used throughout your organization. Test ideas, document desired changes and anticipated reactions. Test in a protected environment that allows you to abandon ideas that don’t pan out and put time and effort into those that look promising. A planning system doesn’t just provided conclusions in the form of numbers but should be used to support those decisions numerically and verbally in the form of an action plan. Your planning model then becomes a true decision support tool, one that measures and communicates goals to those throughout your organization.