I’ll Take BOSS for $1,000, Alex
Answer: “Because the OCC says so.”
What is “Why should I care about strategic planning?”
More specifically, Thomas J. Curry, Comptroller of the Currency says so.
The good news is that surveys say 90% of banks polled have a strategic plan. But here it is, and it won’t surprise you: the biggest barrier to the success of a plan is lack of execution (duh!).
But why? Fewer than 45% of those who have a plan meet quarterly or more often to track the progress. Over 55% barely give it a second thought – so why burn your time creating a plan in the first place?
More from Mr. Curry:
“Strategic planning helps a community bank position its business, identify its best opportunities, and make hard choices about the unknown and uncontrollable.”
The process of creating the plan - forcing you as business owners to get together and answer those hard questions – is the real value. It’s here where you will get creative and honest about opportunities in your market.
Strategic planning for banks is a journey that starts with a solid understanding of your bank’s vision and core values. Think long-term – say 3-5 years – set your objectives and identify the target results that will tell you whether you are succeeding.
Create your playbook, execute, monitor, and adapt. One great person I know says it’s like a diet plan:
“If you plan what to eat (playbook), cook your meals i.e. no processed foods, (execute) and weigh yourself occasionally (monitor), you’ll eat more or less as needed (adapt) have a better chance at success.”
Time for Double Jeopardy: I'll take Execution for $2,000
Answer: "It starts at the top"
What is "Who drives the strategic execution?"
What about the doing? First and foremost, the CEO has to be committed to the plan. In fact CEO's should take on one of the more difficult objectives in order to demonstrate leadership.
Second, the CFO needs to drive the reporting. They should know before anyone else when something is off center and report it promptly.
Third, and maybe the most important (and fun), celebrate all the victories. Completing an objective is a big deal so treat it that way.
This started with "Another reason to do strategic planning". In reality there is only one reason: it's just good business practice.