focus group - leaders in bank consulting · complete swot review 20xx-20xx goals define critical...

Focus Group

Strategy Planning Workshop Session

Current Situation Assessment Complete SWOT Review 20XX-20XX Goals Define Critical Success Factors Close

Agenda

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Approach

• 20XX-20XX Strategic Plan is foundation• First assess• 20XX-20XX Strategic Plan

◊ Accomplishments◊ Misses◊ Learned lessons

• Our environment◊ External◊ Internal

• Top Down – Set Strategic Goals then develop supporting strategies

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Why Plan?

"Would you tell me, please, which way I ought to go from here?”

"That depends a good deal on where you want to get to," said the Cat.

"I don't much care where-" said Alice.

"Then it doesn't matter which way you go," said the Cat.

"-so long as I get somewhere," Alice added

Lewis Carroll, Alice in Wonderland

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Agenda


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Current Situation Assessment

• National Economic‒ Slow Recovery in 20XX‒ Stability in 20XX‒ Improved Growth in 20XX – Maybe

• Regional Economic‒ Lag National by a year or more‒ Probable continuing failures‒ Statewide bankruptcy

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Current Situation Assessment

• Regulatory Impacts‒ Steady to increasing failure rate through early 20XX‒ Continuing TARP restrictions‒ New Regulatory entities on horizon

• Interest Rates & Inflation‒ Likely increase to both‒ Timing unclear

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Agenda


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SWOT Analysis

InternalFactors

ExternalFactors

Strengths Opportunities PositiveFactors

Weaknesses Threats NegativeFactors

The SWOT Analysis

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Strengths

• What advantages does your bank have? • What do you do better than anyone else? • What unique or lowest-cost resources do you have access to? • What do people in your market see as your strengths? • What factors mean that you "get the sale"?

Consider this from an internal perspective, and from the point of view of your customersand people in your market. Be realistic: It's far too easy to fall prey to "not invented heresyndrome". (If you are having any difficulty with this, try writing down a list of yourcharacteristics. Some of these will hopefully be strengths!)

In looking at your strengths, think about them in relation to yourcompetitors - for example, if all your competitors provide high qualityproducts, then a high quality production process is not a strength in themarket, it is a necessity

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Strengths

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Weaknesses

• What could you improve? • What should you avoid? • What are people in your market likely to see as weaknesses? • What factors lose you sales?

Consider this from an internal basis. Again, look from the point of view of yourcustomers and people in your market.

Do other people seem to perceive weaknesses that you do not see? Are yourcompetitors doing any better than you? It is best to be realistic now, and face anyunpleasant truths as soon as possible

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Weaknesses

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Opportunities

• Where are the good opportunities facing you? • What are the interesting trends you are aware of? • Useful opportunities can come from such things as: ‒ Changes in technology and markets on both a broad and narrow

scale.‒ Changes in government policy related to your field.‒ Changes in social patterns, population profiles, lifestyle changes.‒ Local events.

Looking externally consider where there may be opportunities within your customers,markets or industry. A useful approach for looking at opportunities is to look at yourstrengths and ask yourself whether these open up any opportunities. Alternatively, lookat your weaknesses and ask yourself whether you could create opportunities byeliminating them.

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Opportunities

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Threats

• What obstacles do you face?

• What is your competition doing that you should be worried about?

• Are the required specifications for your job, products or services changing?

• Is changing technology threatening your position?

• Do you have loan, deposit or liquidity problems?

• Could any of your weaknesses seriously threaten your business?

Looking externally consider where the many threats from your competitors, markets, industry or regulators.

Consider the 2-3 things that could occur to threaten the existence of the Bank.

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Threats

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Consolidated SWOT

Strengths Weaknesses

Opportunities Threats

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SWOTSTRENGTHS(Leverage)

WEAKNESSES(Improve/Strengthen)

OPPORTUNITIES(Capitalize)

THREATS(Minimize)

1. People • Brightest/knowledgeable• Synergy

2. Teamwork3. Consistency

• We stay in the box• Make the box bigger as

we grow to allow for greater autonomy

4. Leadership/Senior Mgmt• Accessibility to the top

5. Well capitalized6. Quietly successful7. Response time

• Fast decisions• Flexible

8. Creative, innovative9. Non interest income

• Diversified revenue stream

10. Demand deposit focus

1. Employee Training & Development• Systems training• Core System training• Product training• Sales training• “Grow our own”

2. Standardized Communication Tools• Intranet• Forms (online/updated)• Employee

bulletins/newsletter• No coordinated

person/function responsible• Archived reference tools,

resources, policies3. Infrastructure for growth

• Org structure for next level• Bigger boxes to stay within

for autonomy• More boxes re: middle

mgmt4. Customer Relationship Mgmt

• Who is profitable?• How do we measure?• # of services, etc.

5. Marketing tools• Outdated• Haphazard/”hit or miss”

1. Available target market w/existing locations

2. Product Development• Develop more “niche”

products• Remote capture• Wealth management

products• High net worth individual

product needs3. Non-geographic expansion

• Remote Capture allows customers w/regional & national offices to centralize and consolidate accounts/banks

4. Big Banks• Underserved customers

5. Elimination of competition via acquisitions

6. Expansion via brick & mortar• “So many places we’re not!”

1. Hard to find people in the market to match quality of people we have currently

2. Our people more likely to be picked off by competitors • Gen X/lack of loyalty• Succession

3. Competition4. Economy

• Interest rate volatility• Local economy• Residential RE market• Manufacturing customers

importing from overseas5. Increased regulation

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Agenda


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Mission

Accomplishing our Mission includes: Clients first Never-ending client support Business ethics Business orientation Business values Always professional and courteous

To develop lasting customer relationships

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Vision – 20XX – 20XX

• Reducing NPA to below XX% of capital

• Reduce classified assets to less than XX% of capital & reserves

• Maintain and improve profitability to X% ROA

• Improve efficiency ratio to XX% or less at bank level

• $XMM in assets per FTE system wide

• Minimum $XMM in assets per FTE in the regional offices.

Over the next three (3) years, we will address the challenges facing the Bank while maintaining the core competencies of the bank, temper its growth and improve its performance by:

We intend to return to high performance status.

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Vision – 20XX-20XX

The key to achieving this Vision continues to be people, people, and people! • We need to continue to achieve the “extra mile” from all employees to attain our

goals.• Regional offices need to retain existing customers and deposit base while getting

larger. • As we grow, the individual and unit contribution is essential. We need to

recognize non-contributors sooner rather than later and take action as necessary.

Our mantra will continue to be able to resume balanced profitable growth. We need higher levels of production from all regions selective addition of customers focus on deposit acquisition. There will be no “give up” on efficiency or profitability to achieve growth.

Over the next three (3) years, we will continue to be proactive withtechnology and e-commerce, in the forefront with new products andservices, mirroring our continued success with ACH, maintainingsuccess with remote deposit capture and identifying new initiativesthat fit our focus on targeted markets.

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Agenda


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CSFs

Critical Success Factors are any of the aspects of a business that are identified as vital for successful targets to be reached and maintained.

Critical success factors are normally identified in such areas as production processes, employee and organization skills, functions, techniques, and technologies.

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Our CSFs

1.2.3.4.5.

EXAMPLE: Capability to both perform high quality loan underwriting and quick decision making.

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Agenda


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Appendix

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Profitable GrowthPriority 1:

Grow Bank assets to $XXXMM with additional location(s) and a minimum ROE of XX%

Assumptions: Funding:

Demand and Low Cost Deposits 80%

Loan Portfolio Targets: Installment: 3%-5%Real Estate: 30%-40%Commercial & Industrial: 40%-60%SBA Loans: 20%-30%

Strategy 1: Grow Demand and Low Cost deposits 10% to 15% annually.

Strategy 4: Source/find and hire the “right” person to open new location(s).

Strategy 5: Continue to source/consider a strategic acquisition.

Strategy 3: Grow non-interest income.

Strategy 2: Grow loans outstanding by 10% to 15% annually.

Strategy 6: Develop new strategic lines of business (i.e. entertainment industry)

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Marketing and Sales

Priority 2:Develop and/or enhance an effective, coordinated Marketing focus.

Strategy 1: Define the Bank’s marketing strategy/image.

Strategy 4: Effectively and measurably promote current online products, especially ACH and Remote Capture.

Strategy 5: Fully develop/utilize Customer Relationship Management (CRM) tools, including customer profitability.

Strategy 3: Develop new products aligned with targeted customer focus.

Strategy 2: Update/enhance packaging of marketing materials.

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Human Resources

Priority 3:Attract, retain and reward a superior staff.

Strategy 1: Develop a comprehensive bank-wide Training plan, delivering needs identified in 20XX GPS Planning Audit.

Strategy 4: Strengthen the Human Resources function.

Strategy 5: Outline the strategies needed to remain/become the place people “line up” to come to work for.

Strategy 3: Re-recruit the top 20% of staff annually.

Strategy 2: Develop and/or enhance the usage of standardized communication tools.

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Organizational Development

Priority 4:Develop the infrastructure for a $XXXMM bank.

Strategy 1: Develop needed infrastructure for current size.

Strategy 3: More fully define and develop a culture of accountability.

Strategy 2: Re-define duties across the organization with emphasis of accountability on sales, including sales calls, telemarketing and business development

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Action Steps Resp. Target Date

CompletionDate

Comments

1. Close CEO’s management style throughout the organization• Specifically, outline

characteristics and develop management accountabilities accordingly. (i.e. open door, team building)

3/31/XX 12/31/XX

2. Develop a simple, effective Total Compensation outline for every employee in the Bank to demonstrate value of Total Compensation

3/31/XX 12/31/XX

3. Strength systemic Employee Orientation program to cement/teach culture

3/31/XX 12/31/XX

Priority 3: Attract, retain and reward a superior staff.3

Strategy 5: Outline the strategies needed to remain/become the place people “line up” to come work for.

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