Successful planning prepares bank to control its future

by Donna Busking

Abraham Lincoln is quoted as saying that if he had eight hours to cut down a tree, he would spend seven hours sharpening his ax. The concept makes lots of sense, but most of us would rather "do" than "plan" what we're going to do.

Strategic planning actually begins with a series of questions: Who are we? What do we want to be? Where are we going? How do we get there? What do we do? Who is responsible? How do we monitor progress?

Strategic planning is about focus. It begins with the planning process and development of a plan, which can take from six weeks to three months. The final step is implementation, which is usually a two-to three-year process. Planning is not about predicting the future but in becoming focused so that you can control the future.

The planning team should be composed of five to seven individuals who are broad thinkers and team players, individuals who are creative, visionary and willing to accept change. However, information about the organization must be gathered from every level - employees, managers, directors, customers, and non?customers. A vision and mission statement should be developed. This addresses the questions of "Who are we?", "What do we want to be?" and " Where are we going?"

Formulating strategies and action plans are critical to full implementation of the plan. Specific dates must be established for achievement. Measurements must be established by which success can be determined and on which feedback can be received.

Objectives must be defined clearly and logically enough to be understood by all of those responsible for achieving them. They should be comprehensive, covering all departments of the bank. But departmental objectives should not extend to areas beyond the control of the department managers concerned.

The objectives must be realistic, demanding only the achievable. They must be valuable - i.e., worth the price of the commitment of resources. And, last but certainly not least, they must be adaptable and flexible so they can be revised in response to unforeseen developments and performance can be maximized in a changing environment.

Strategies or objectives answer the question: "How do we get there?" Action steps must be established to answer the question "What do we do?" " Who is responsible?" is answered by assigning action items to specific individuals or departments. This is where accountability enters the picture.

The final question deals with measuring progress and is critical to the success of the plan. If your plan is dog?eared and a covered with coffee stains, you are probably monitoring your goals and objectives. If you can blow dust off it, chances are the plan was placed on a shelf and never reviewed again after it was written. Measurements also must be communicated on a regular basis to employees, managers and the board of directors. It's not enough for the bank's team to know what the finish line is. They must know at all times where the bank is in relation to that finish line.

This can take lots of time, effort and energy in your bank. But it really can be summed up saying that strategic planning is figuring out the relatively few things that really matter, figuring out what you are going to about them, and then DOING IT!

Abe would feel certain that you had sharpened your ax adequate before chopping down that tree.

Busking is a consultant and trainer with more than 20 years experience in the banking industry. Her professional background includes sales, service, strategic planning, quality management, operations, training and management experience. She previously served as Senior Vice President of two financial institutions and currently is a member of the Board of Directors of First American Bank. Her clients include banks as well as other businesses and organizations.

First published on BankersOnline.com 2/18/02