Strategic Planning

&

Execution

in Management Md.Motiar Rahman

SEVP,IBTRA

What is Strategic Planning?

Strategic planning is the art of creating specific business strategies,

implementing them, and evaluating the results of executing the plan,

in regard to a company’s overall long-term goals or desires. It is a concept

that focuses on integrating various departments(Such

as Deposit and Investment ,IT , marketing, and human resources) within a

company to accomplish its strategic goals. The term strategic planning is

essentially synonymous with strategic management.

History of Strategic Planning

The concept of strategic planning originally became popular in the

1950s and 1960s,and enjoyed favor in the corporate world up until the

1980s, when it somewhat fell out of favor. However, enthusiasm for

strategic business planning was revived in the 1990s and strategic

planning remains relevant in modern business.

Strategic Planning

Strategic Planning helps your answer five questions :

Where are we now ?Where do we want to be

How are we going to get

there? Who is going to do what

How will we monitor our

progress

Importance of strategic Plan

Direction

Logari

thm

Targ

et

PR

Q

SY

XO

P=Where are we now

Q=How are we going to get them S=where we want to go

R=How do we measure our progress

What is Strategic Management

Strategic management is the management of an organization’s

resources to achieve its goals and objectives. Strategic management

involves setting objectives, analyzing the competitive environment,

analyzing the internal organization, evaluating strategies, and

ensuring that management rolls out the strategies across the

organization.

What is Strategic Management

(cont’d)

❑ On going planning ,Monitoring, Analysis assessment of all

necessities.

❑ To meet its goals and objectives.

❑ If environment changes then constantly assess strategic for

success.

❑ Analysis the effectives of the implement management

strategies.

❑ Strategic management applies both to on-premise and mobile

platform.

Five stages of strategic

management process

assessing the organization's current strategic direction.

identifying and analyzing internal and external strengths and

weaknesses.

formulating action plans.

executing action plans.

evaluating to what degree action plans have been successful and

making changes when desired results are not being produced.

Influential factors of

Strategic planning in Banks

Political factors

Economic factors

Social factors

Technological factors

Legal factors

Environmental factors

Ingredient of best strategic

planning

Object Result

O=Objective R=Reachable

B=Bracing E=Exponent

J=Judicious S=Significant

E=Exact U=understandable

C=Clearing understandable L=Limited to number

T=Tangible T=Trackable

The planning process

1. Analysis

✓ Preparation and primary assessment

✓ Current vision of business

✓ SWOT analysis

2. Direction

✓ Vision ,mission ,goals and priories

✓ Operational plan

✓ Financial forecasting

3. Execution

✓ Action plan

✓ Implementation /follow-up

How to make a strategic planning

by a Bank Strategic Intent: Strategic intent is, nothing but, the influencing of an

organization’s resource potential and core competencies to achieve what at first

may seem to be unachievable goals in the competitive environment.

Mission Statement:

a) Mission must be feasible and attainable. It should be possible to achieve it.

b) Mission should be clear enough so that any action can be taken.

c) It should be inspiring for the management, staff and society at large.

d) It should be precise enough, i.e., it should be neither too broad nor too narrow.

e) It should be unique and distinctive to leave an impact in everyone’s mind.

f) It should be analytical, i.e., it should analyze the key components of the strategy.

g) It should be credible, i.e., all stakeholders should be able to believe it.

.

How to make a strategic

planning by a Bank (cont’d)

Vision:

a) It must be unambiguous.

b) It must be clear.

c) It must harmonize with organization’s culture and values.

d) The dreams and aspirations must be rational/realistic.

e) Vision statements should be shorter so that they are easier to memorize

Goals and Objectives:

a) These are precise and measurable.

b) These look after critical and significant issues.

c) These are realistic and challenging.

d) These must be achieved within a specific time frame.

e) These include both financial as well as non-financial components.

How to make a strategic planning by

a Bank (cont’d)

Objectives are defined as goals that organization wants to achieve over

a period of time. These are the foundation of planning. Policies are

developed in an organization so as to achieve these objectives.

a) These are not single for an organization, but multiple.

b) Objectives should be both short-term as well as long-term.

c) Objectives must respond and react to changes in environment, i.e.,

they must be flexible.

d) These must be feasible, realistic and operational.

Steps for implementation of

strategic plan by the Banks

Identify Your Strategic Position

a) Start by defining both your short-term and long-term objectives. In

short, what do you hope to achieve?

b) Next, determine what steps we will take to accomplish these

objectives.

c) Remember that your goals should be realistic and measurable

Gather People and Information:

a) Established your strategic position.

b) bring in the people who will be involved in the planning process.

c) Ask other people in your business for their input, such as employees,

customers, or partners.

Steps for implementation of strategic

plan by the Banks (cont’d)

➢ Perform a SWOT Analysis

Factors Beneficial Harmful

Internal Factors Strengths (What do we well) Weakness (What

thing do we need

to works on in our

business )

External Factors Opportunities

(What trends are creating

more opportunities for us)

Threats

(What obstacles

are we facing )

Steps for implementation of strategic

plan by the Banks (cont’d)

Formulated Strategic :

a) successfully identified the strategic position and have a set of goals that

align with Bank’s mission, you can begin working on your strategic plan.

b) With measurable goals you can visibly see improvements as they

happen. Execute Your Strategic Plan.

Execute Your Strategic Plan:

a) This step is the action phase of the strategic planning process.

b) Start by making everyone involved in the plan aware of your strategy.

c) Ideally, you want to distribute tasks among different individuals or

departments to prevent one person or group of people from becoming

overwhelmed.

Steps for implementation of strategic

plan by the Banks (cont’d)

Constantly Monitor Performance:

a) Your strategic planning process will not be effective unless everyone is

doing their part.

b) This requires to constantly monitor and manage performance and

tweak any component

Do sensitivity analysis:

A good idea for your models to include sensitivity analysis—a variety of

scenarios reflecting different possible outcomes.

Update regularly:

You should update a model if conditions change and input actual figures

as you go, in order to see the impacts on projections.

Benefits of Strategic Planning

a) The volatility of the business environment causes many firms to

adopt reactive strategies rather than proactive ones. However,

reactive strategies are typically only viable for the short-term,

even though they may require spending a significant amount of

resources and time to execute.

b) Strategic planning helps firms prepare proactively and address

issues with a more long-term view.

c) They enable a company to initiate influence instead of just

responding to situations.

Benefits of Strategic Planning (Cont’d)

Among the primary benefits derived from strategic planning are the

following:

❑ Helps formulate better strategies using a logical, systematic

approach:

strategic planning process itself makes a significant contribution to

improving a company’s overall performance.

❑ Enhanced communication between employers and employees

a) Communication is crucial to the success of the strategic planning

process.

b) t is initiated through participation and dialogue among the managers

and employees.

c) Showing their commitment to achieving organizational goals.

Strategic Evaluation

a) Success today does not guarantee success tomorrow.

b) Strategy evaluation involves three crucial activities.

c) Reviewing the internal and external factors affecting the

implementation of the strategy.

d) Measuring performance

e) taking corrective steps to make the strategy more effective.

Strategic Evaluation (cont’d)

❑ All three steps in strategic planning occur within three

hierarchical levels: upper management, middle

management, and operational levels.

❑ It is imperative to foster communication and interaction

among employees and managers at all levels.

❑ As to help the firm to operate as a more functional and

effective team.

Guild lines for implementation of

Strategic Planning (Cont’d)

8. Be sure to document and distribute the plan, including

inviting review input from all.

9. Be sure that one internal person has ultimate

responsibility that the plan is enacted in a timely

fashion.

10. The chief executive’s support of the plan is a major

driver to the plan’s implementation.

11. Place huge emphasis on feedback to the board’s

executive committee from the planning participants.

Guild lines for implementation of

Strategic Planning

1. When conducting the planning process, involve the people who will be responsible for implementing the plan.

2. Ensure the plan is realistic. Continue asking planning participants “Is this realistic?

3. Organize the overall strategic plan into smaller action plans.

4. In the overall planning document, specify who is doing what and by when.

5. In an implementation section in the plan, specify and clarify the plan’s implementation roles and responsibilities.

6. Translate the strategic plan’s actions into job descriptions and personnel performance reviews.

7. Communicate the role of follow-ups to the plan. If people know the action plans will be regularly reviewed, implementers tend to do their jobs before they’re checked on.

Optimum result though

strategic Plan Management

O

Y

X

Q

O

Y

Optimum

achievement

Target to improve

Y

3-5 years braking

objectives

Top levels

improvement

Priorities

Annual Objective

The strategic –Planning Gap

Diversification growth

Integration Growth

Intensive growth

Desire Target

Strategic Planning

Gap

Projected target

Time (Year)

1005

Strategic priorities for Islamic

Banks

Commitment for complacence of shari’ah

Best-in-class in quality of service and reputation

Sustainable profitability above cost of capital

Optimisation of capital allocation

Enhance our leadership in banking digitalization

Retain and attract the best talent

THANK YOU