Planning for Transformation at Liberty Bank Dr. Fred Mugambi Mwirigi ESF Apex Strategies Limited

Introduction  Strategic planning is the process of identifying the corporate destination, working out the corporate roadmap from the present to the desired destination and filling the gaps backwards by allocating resources, actioning the roadmap and controlling the process

Contd.  Strategic planning demands that we open ourselves to possibilities of radical changes in how we perceive, think, and act  We must stretch our horizons and widen our boundaries  Is liberty Bank just a citizen of Juba, South Sudan, Africa, or a citizen of the world?

12/13/ Remember…Opportunities only come to those whose senses remain open to possibilities

5 Shifts to Transformation  To move forward we must plan to transform both the company and ourselves  We must trigger shifts in corporate philosophy and values and in the numerous structures and organizational arrangements that shape our current position

6 Contd.  The process of transformation is essentially a death-and-rebirth process  It is a movement from what is to what is not but should be  The movement must begin with a change of mindset  Only then can the organization begin to shift

7 It’s a movement. it begins in the mind! Closed-up status- quo-oriented Mindsets Open and receptive mindsets

8 It’s a movement… Growth stagnation Focused Growth with clear objectives And milestones

9 It’s a movement… Shrinking Resource Base Growing and sustainable Resource Base

10 It’s a movement… De-motivated inactive Workforce Engaged and motivated workforce

11 It’s a movement… Ineffective and inefficient technologies Cutting edge Objective-driven technologies

12 It’s a movement… Hierarchical Bureaucratic Structures Flat efficient Structures

13 It’s a movement… Individualistic performance Team Performance

14 It’s a movement… Market Irrelevance Market Leadership Orientation

Rediscovering our Mission  What business are we in  Who are our customers  What are their real needs  Do we, in serving them, truly solve their problems

Pyramid of strategic planning Stages are interrelated and interlinked Vision Mission Strategic Goals Strategic Objectives Performance Indicators Activities/Projects

Strategies, Goals and Policies 17 Vision Medium term objectives Mission Strategic Objectives Short term objectives Operational Policies Grand Strategy Tactical Policies Strategic Policies Tactical Strategies Operational Strategies C.Vs

18 Key Questions 18 StageOutputs Where are we?  External environmental analysis  Internal environmental analysis Where do we want to go?  New vision, mission & core values  Strategic objectives HOW do we get there?  Strategies  Results and operational plans  Required resources What practical next steps must be made to get there?  Short-term budgets  Short-term organizational, managerial, HR, etc. decisions and managerial, HR, etc. decisions and actions (“Quick Wins”) actions (“Quick Wins”) How do we monitor & evaluate the plan?  M&E plan

General Requirements for Planning 1.Organizational readiness  Recognition of need to plan  Commitment to plan 2. Organizational commitment  Board and volunteer commitment  Staff commitment 3. Organizational Capacity  Human resources  Financial resources  Time  Technology

Specific Requirements for Planning 1. Strategic Planning Team Board, staff, 2. Strategic Planning Budget Establish budget, identify and allocate funding 3. Strategic Planning Facilitator(s) Identify a facilitator to lead the process 4. Strategic Planning Partners Internal board and staff External community groups/government departments/others

Support structure. 21 Strategic Planning Resources Good-will Shared values Action Vision, Mission, Strategic goals Structures/ Systems

The transition  We plan in order to transform disjointed inputs into one whole that has capacity to solve customer problems  In Planning we begin from the known and then transit into the unknown  It is a challenging journey that requires unwavering commitment to the course

From planning to reaping Transition comes with challenges….. 23 Strategic Goal Setting Strategy Development and Implementation Activities Results

Transition Challenges  Structures  Systems  Processes  Politics  People (staff)  External dynamics (shifts)  Resources

Transition results  Overcoming transformational challenges makes our company an adaptive organic company that respects and embraces learning and reciprocal interdependence  We stop working in cubicles (departmental boundaries) and start working in realization that we all need each other  An intricate web of interdependence (nested company) is then born

Key Planning areas  Strategic Issues  Strategic objectives  Strategies  Activities

Planning Grid: Activities Liberty Bank Limited Strategic Objective One: Growing Corporate Loans to X Billion Dollars Per Year By 2017 Key Activities 2013/ / / / /

Planning Grid: Departmental Milestones Liberty Bank Limited Departmental Milestones ICT Activities 2012/ / / / /

Planning Grid: List of Key Company Projects Liberty Bank Limited Summary of Key Company Projects Activities 2012/ / / / /

Planning Grid: Budget Allocations Department2012/ / / / /2017TotalRemark Marketing Accounts and Finance ICT Security HRM Branch A Branch B Total Liberty Bank Limited Departmental Budgetary Allocation to meet outlined Strategic Objectives

Monitoring and Evaluation Performance Level Strategy Time Frame OutputPlanned to Date Actual to Date Varianc e In % Impeding or Impelling Factors Responsible Person Liberty Bank Limited Monitoring and Evaluation Instrument

Conclusion  Planning is not an activity but a process  As a company we are as good as we plan and follow through to action the plans  Planning must be aligned with current reality  Benchmarking is key to effective planning and corporate growth

Thank you