Management Planning

A brief overview of the different plans and their objectives

A bank is a complex and dynamic organization that operates in a competitive and regulated environment. To achieve its goals and fulfill its mission, a bank needs to have a clear vision and a coherent strategy that guides its decisions and actions. A strategy is a long-term plan that outlines the direction, scope, and priorities of a bank. It defines what the bank wants to achieve, how it will achieve it, and how it will measure its progress and performance.

A strategy is not a static document that is written once and forgotten. It is a living and evolving framework that needs to be reviewed and updated regularly to reflect the changing internal and external factors that affect the bank. A strategy also needs to be translated into more specific and actionable plans that cover different aspects and functions of the bank. These plans are the tools that help the bank implement its strategy and monitor its results. They provide the details of what, when, who, and how the bank will do to achieve its strategic objectives.

We have created a listing of strategic plans that a bank needs to have and suggest what plans are missing.

STRATEGIC PLAN

A strategic plan is a document that outlines the long-term vision, goals, and direction of an organization. It helps to align the organization’s resources, capabilities, and actions with its mission and values. A strategic plan is different from a business plan, which is a more detailed and specific document that describes how the organization will achieve its short-term objectives, such as revenue, market share, or profitability.

A bank’s long-term strategic plan should consider the following questions:

  • What is the bank’s core values and purpose?
  • What are the bank’s strengths, weaknesses, opportunities, and threats in the current and future market environment?
  • Who are the bank’s target customers and segments, and what are their needs and preferences?
  • How does the bank differentiate itself from its competitors and create value for its stakeholders?
  • What are the bank’s strategic goals and priorities for the next 5 to 10 years, and how will they be measured and monitored?
  • What are the key initiatives and actions that the bank will undertake to achieve its strategic goals and priorities?
  • How will the bank allocate its financial, human, and technological resources to support its strategic initiatives and actions?
  • How will the bank manage the risks and uncertainties associated with its strategic plan?

A Strategic plan is usually developed by executive management of the bank and the board of directors. The plan is reviewed and updated annually or as needed to reflect the changing circumstances and performance of the bank.

BUSINESS PLAN

A business plan is a comprehensive and integrated plan that outlines the overall goals, strategies, and actions of the bank. It covers the financial, operational, and organizational aspects of the bank and provides a roadmap for its growth and development. A business plan answers the following questions:

  • What is the vision, mission, and value proposition of the bank?
  • What are the target markets, segments, and customers of the bank?
  • What are the products, services, and solutions that the bank offers or plans to offer?
  • What are the competitive advantages and differentiators of the bank?
  • What are the revenue streams, cost drivers, and profitability indicators of the bank?
  • What are the key performance indicators (KPIs) and targets of the bank?
  • What are the resources, capabilities, and partnerships that the bank needs or has?
  • What are the risks, challenges, and opportunities that the bank faces or anticipates?
  • What are the action plans, timelines, and responsibilities of the bank?

A business plan is usually developed by the senior management of the bank, with input and feedback from the different departments and stakeholders. It is approved by the board of directors and communicated to the employees and external parties. It is reviewed and updated annually or as needed to reflect the changing circumstances and performance of the bank.

TECHNOLOGY PLAN

A technology plan is a specific and detailed plan that outlines the technology goals, strategies, and actions of the bank. It covers the hardware, software, network, data, and security aspects of the bank and provides a blueprint for its digital transformation and innovation. A technology plan answers the following questions:

  • What are the current and future technology needs and requirements of the bank?
  • What are the technology trends, developments, and best practices that the bank should follow or adopt?
  • What are the technology projects, initiatives, and investments that the bank will undertake or support?
  • What are the technology standards, policies, and procedures that the bank will adhere to or enforce?
  • What are the technology risks, issues, and challenges that the bank faces or anticipates?
  • What are the technology performance indicators and targets of the bank?
  • What are the technology resources, capabilities, and partnerships that the bank needs or has?
  • What is the technology action plans, timelines, and responsibilities of the bank?

A technology plan is usually developed by the technology department of the bank, with the input and feedback from the other departments and stakeholders. It is aligned with the business plan and supports the strategic objectives of the bank. It is approved by the senior management and the board of directors and communicated to the employees and external parties. It is reviewed and updated regularly or as needed to reflect the changing technological environment and performance of the bank.

PAYMENTS PLAN

A payments plan is a specific and detailed plan that outlines the payments goals, strategies, and actions of the bank. It covers the payment products, services, and solutions that the bank offers or plans to offer to its customers and partners. It also covers the payment systems, platforms, and networks that the bank uses or plans to use to process and facilitate the payments. A payments plan answers the following questions:

  • What are the current and future payment needs and preferences of the bank’s customers and partners?
  • What are the payment trends, developments, and best practices that the bank should follow or adopt?
  • What are the payment products, services, and solutions that the bank offers or plans to offer?
  • What are the payment systems, platforms, and networks that the bank uses or plans to use?
  • What are the payment standards, regulations, and compliance requirements that the bank should adhere to or meet?
  • What are the payment risks, issues, and challenges that the bank faces or anticipates?
  • What are the payment performance indicators and targets of the bank?
  • What are the payment resources, capabilities, and partnerships that the bank needs or has?
  • What is the payment action plans, timelines, and responsibilities of the bank?

A payments plan is usually developed by the operations department of the bank, with the input and feedback from the other departments and stakeholders. It is aligned with the business plan and the technology plan and supports the strategic objectives of the bank. It is approved by the senior management and the board of directors and communicated to the employees and external parties. It is reviewed and updated regularly or as needed to reflect the changing payments environment and performance of the bank.

DIGITAL PLAN

A digital plan is a specific and detailed plan that outlines the digital goals, strategies, and actions of the bank. It covers the digital channels, platforms, and tools that the bank uses or plans to use to interact and engage with its customers and partners. It also covers the digital marketing, sales, and service activities that the bank performs or plans to perform to acquire, retain, and satisfy its customers and partners. A digital plan answers the following questions:

  • What are the current and future digital needs and expectations of the bank’s customers and partners?
  • What are the digital trends, developments, and best practices that the bank should follow or adopt?
  • What are the digital channels, platforms, and tools that the bank uses or plans to use?
  • What is the digital marketing, sales, and service activities that the bank performs or plans to perform?
  • What are the digital standards, policies, and procedures that the bank should adhere to or enforce?
  • What are the digital risks, issues, and challenges that the bank faces or anticipates?
  • What are the digital performance indicators and targets of the bank?
  • What are the digital resources, capabilities, and partnerships that the bank needs or has?
  • What are the digital action plans, timelines, and responsibilities of the bank?

A digital plan is usually developed by the digital department of the bank, with input and feedback from the other departments and stakeholders. It is aligned with the business plan, the technology plan, and the payments plan and supports the strategic objectives of the bank. It is approved by the senior management and the board of directors and communicated to the employees and external parties. It is reviewed and updated regularly or as needed to reflect the changing digital environment and performance of the bank.

LENDING PLAN

A lending plan is a specific and detailed plan that outlines the lending goals, strategies, and actions of the bank. It covers the lending products, services, and solutions that the bank offers or plans to offer to its customers and partners. It also covers the lending processes, systems, and models that the bank uses or plans to use to assess, approve, and monitor the loans. A lending plan answers the following questions:

  • What are the current and future lending needs and demands of the bank’s customers and partners?
  • What are the lending trends, developments, and best practices that the bank should follow or adopt?
  • What are the lending products, services, and solutions that the bank offers or plans to offer?
  • What are the lending processes, systems, and models that the bank uses or plans to use?
  • What are the lending standards, regulations, and compliance requirements that the bank should adhere to or meet?
  • What are the lending risks, issues, and challenges that the bank faces or anticipates?
  • What are the lending performance indicators and targets of the bank?
  • What are the lending resources, capabilities, and partnerships that the bank needs or has?
  • What is the lending action plans, timelines, and responsibilities of the bank?

A lending plan is usually developed by the Chief Lending officer of the bank, with input and feedback from the other departments and stakeholders. It is aligned with the business plan and supports the strategic objectives of the bank. It is approved by the senior management and the board of directors and communicated to the employees and external parties. It is reviewed and updated regularly or as needed to reflect the changing lending environment and performance of the bank.

RISK MANAGEMENT PLAN

A risk management plan is a specific and detailed plan that outlines the risk management goals, strategies, and actions of the bank. It covers the identification, assessment, mitigation, and monitoring of the various risks that the bank faces or anticipates. It also covers the risk governance, culture, and appetite of the bank. A risk management plan answers the following questions:

  • What are the types, sources, and levels of risks that the bank faces or anticipates?
  • What are the risk management trends, developments, and best practices that the bank should follow or adopt?
  • What are the risk management frameworks, tools, and techniques that the bank uses or plans to use?
  • What are the risk management standards, policies, and procedures that the bank should adhere to or enforce?
  • What are the risk management roles, responsibilities, and accountabilities of the bank?
  • What are the risk management performance indicators and targets of the bank?
  • What are the risk management resources, capabilities, and partnerships that the bank needs or has?
  • What is the risk management action plans, timelines, and responsibilities of the bank?

A risk management plan is usually developed by the risk management department of the bank, with the input and feedback from the other departments and stakeholders. It is aligned with the business plan and supports the strategic objectives of the bank. It is approved by the senior management and the board of directors and communicated to the employees and external parties. It is reviewed and updated regularly or as needed to reflect the changing risk environment and performance of the bank.

MERGER AND ACQUISITION PLAN

M&A can be a powerful tool for achieving strategic objectives such as growth, diversification, innovation, or efficiency. However, M&A also involves significant challenges and risks, such as valuation, integration, culture, regulation, and competition. Therefore, a well-designed and executed M&A strategic plan is essential for ensuring the success of any M&A deal.

M&A STRATEGIC PLAN COMPONENTS

An M&A strategic plan consist of the following components:

  • Vision and objectives: This component defines the rationale and goals of the M&A transaction, such as increasing market share, entering new markets, acquiring new capabilities, or creating synergies. It also identifies the criteria and metrics for evaluating the success of the deal.
  • Target identification and screening: This component involves conducting a comprehensive market analysis and identifying potential targets that align with the vision and objectives of the M&A transaction. It also involves screening and prioritizing the targets based on their strategic fit, financial performance, valuation, and feasibility.
  • Due diligence and valuation: This component involves conducting a thorough investigation and assessment of the target’s business, financial, legal, operational, and cultural aspects. It also involves determining the fair value of the target and the optimal deal structure and financing.
  • Negotiation and closing: This component involves negotiating the terms and conditions of the deal with the target’s management and shareholders, as well as obtaining the necessary approvals and consents from regulators, lenders, and other stakeholders. It also involves finalizing the deal documents and closing the transaction.
  • Integration and value creation: This component involves planning and executing the integration of the target’s business, processes, systems, and people with the acquirer’s organization. It also involves monitoring and managing the post-merger performance and realizing the expected synergies and benefits of the deal.

M&A is a complex and dynamic process that requires a clear and coherent plan. A well-crafted M&A strategic plan can help the acquirer achieve its desired outcomes and avoid potential pitfalls.

MARKETING PLAN

A marketing plan for a bank is a document that outlines the objectives, strategies, and tactics that the bank will use to attract and retain customers, increase its market share, and achieve its business goals. A marketing plan for a bank typically consists of the following sections:

  • Executive summary: This is a brief overview of the main points and highlights of the marketing plan, including the target market, the value proposition, the competitive advantage, and the expected results.
  • Situation analysis: This is an in-depth analysis of the current market situation, including the customer needs, preferences, and behavior, the competitive landscape, and the opportunities and threats facing the bank.
  • Marketing objectives: This is a clear and measurable statement of what the bank wants to achieve with its marketing efforts, such as increasing brand awareness, customer satisfaction, loyalty, retention, referrals, or profitability.
  • Marketing strategy: This is a description of how the bank will achieve its marketing objectives, including the segmentation, targeting, and positioning of its customer base, the differentiation and positioning of its products and services, and the pricing and distribution channels.
  • Marketing tactics: This is a detailed plan of the specific marketing activities and campaigns that the bank will implement to execute its marketing strategy, such as advertising, promotion, content marketing, social media, email marketing, events, public relations, or partnerships.
  • Marketing budget: This is an estimation of the costs and resources required to implement the marketing tactics, including the allocation of funds, personnel, time, and tools.
  • Marketing evaluation and control: This is a system of measuring and monitoring the performance and effectiveness of the marketing plan, using key performance indicators (KPIs), metrics, and feedback mechanisms, and adjusting the plan as needed to optimize the results.

OTHER PLANS

Some other plans that we are engaged on are:

  • A human resources plan that outlines the talent management goals, strategies, and actions of the bank. It covers the recruitment, retention, development, and engagement of the employees and the culture and values of the bank.
  • A customer experience plan that outlines the customer experience goals, strategies, and actions of the bank. It covers the design, delivery, and evaluation of the customer journey and the satisfaction and loyalty of the customers.
  • A social responsibility plan that outlines the social responsibility goals, strategies, and actions of the bank. It covers the environmental, social, and governance (ESG) aspects of the bank and the impact and contribution of the bank to society and the planet.

These plans are important for the bank to enhance its competitiveness, reputation, and sustainability. They should be developed, approved, communicated, and reviewed in a similar manner as the other plans and aligned with the business plan and the strategic objectives of the bank.

CCG Catalyst planning services are essential for banks and credit unions that want to thrive in the fast-changing and competitive banking industry. At CCG Catalyst we advise banks on development and implementing their strategy. Contact us today to learn more about our planning services and how we can help you.

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Paul Schaus

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As Founder, President and Chief Executive Officer he leads a successful team of subject matter experts. Throughout his successful career Paul has been a banker, management consultant, strategist, thought leader and strong advocate to the financial services industry.

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