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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

3Peter Cheverton, Key Marketing Skills, 2nd Edition, Kogan Page, 2004

VOLUME/VALUE

or

SHARE

Decay or Renewal?

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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 MapTargets

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 Goals Corporate Values

STRATEGIC PLAN2007 - 2009

Strategies

Market Focus Financial PerformanceBusiness Process Focus People/Structure

Action Steps

Action Plan Strategy:

Objective:

Officer In Charge Schedule Resources

NeededMonitoring

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/ PresidentProvides 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 presentsBankwide Plan &

Targets

Implementation and periodic

monitoring of annualbank plan and targets;

Strategic Plan

Strategic Management Process

I.200x -200xStrategies

& Goals

II.200x

Business Plan

III.200x

Action Plans

IV.200x

IndividualGoals(PMS)

V.Results

Management/PeriodicReviews

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