1 Strategic Planning Overview and Framework

Alice: Which way should I go? Cat: It depends on where you are going. Alice: I don’t know where I am going. Cat: “If you don’t much care where you go… then it doesn’t really matter which way you go.” The Cheshire Cat to Alice in Through the Looking Glass

Decay Scenario: The Do Nothing or Do Something Option 3 Peter Cheverton, Key Marketing Skills, 2 nd Edition, Kogan Page, 2004 V O L U M E / V A L U E or S H A R E

Decay or Renewal? 4 Introduction/ Launching Growth Maturity Decline/Decay Renewal Growth Maturity Renewal Growth Maturity

Workshop Flow and Outputs Where do we want to go? How do we get there? How do we measure our progress? Where are we now? Internal/ External Assessment Mission, Vision, Goals Action Plan / Strategies Performance Indicators

Planning Objectives  Where are we now? Trends: Have we made significant progress? Accomplished vs. Targets Any breakthroughs? Major strategic challenges?  Where do we want to go? Road Map Targets

Planning Objectives  How do we get there? What are the Strategic Business Issues and what strategies can respond to these issues? What do we need (requirements) to get there? Do we need champions?  How do we measure our progress? Do we need a monitoring team? Reports from AOs, from Branch Reports from Supervisors, Product Heads Consolidated Comparisons of Performance with Targets Microfinance Performance Standards (EAGLE, by Branch)

Vision-Mission Breakthrough GoalsCorporate Values STRATEGIC PLAN Strategies Market FocusFinancial PerformanceBusiness Process FocusPeople/Structure

Action Steps Action Plan Strategy: Objective: Officer In Charge Schedule Resources Needed Monitoring Format/ Process

Operational Planning Activities Strategic Planning Every 3 years Annual Planning Process is Institutionalized (Normally starts every November and ends with adoption of Bank-wide Plan in early January) BOD/ President Provides Broad/ Macro targets Corporate Planning Head/ General Manager distributes target to Branches Branch Managers together with Accountant, Loan Officers/ MF Supervisors/ Account Officers prepare Branch Plan & Targets Senior Management & Branch Managers Meet on Branch Plan & Targets; CorPlan Unit presents Bankwide Plan & Targets Implementation and periodic monitoring of annual bank plan and targets; Strategic Plan

Strategic Management Process I. 200x -200x Strategies & Goals II. 200x Business Plan III. 200x Action Plans IV. 200x Individual Goals (PMS) V. Results Management/ Periodic Reviews 200X Outputs  Market strategies  Functional strategies  3-Year Goals Process  3 - day workshop with Board and Managers/Officers on 3-Year strategies and goals  Consolidation of strategic plan Schedule  3 -days  Strategies  Objectives  Budgets  Action Plans per Department/ Branch  Individual goals using the Performance Management System (System design if PMS is not in place)  Re-planning/ adjustments  Controls  monthly, quarterly review of targets vs. actual  re-planning where needed

The easiest way to reach your destination is to know Where you are going, Why you’re going there, How and When to get there, and What resources you need to get there. Achieving Goals