From Strategic Statement to Control
Category: Strategy Implementation
Four major inter-dependent steps
The whole process linked to the definition of a strategy and to its implementation is made of four major steps, closely inter-dependent. Indeed, the success of a strategy depends strongly on the precise definition of each of the steps, in order to have a clear view of the objectives, the way to reach them and the necessary information to react quickly in case of a problem.
From the strategic to the action plans
A strategic statement is first defined, usually by the senior management of the banking organisation. Then, an operating plan is necessary to support it. It defines the broad objectives to be reached, in financial and non-financial terms. In a third step, the action plan will then details the practical actions to be followed by the sectors being concerned by the strategy implementation (branches, support departments), with the necessary resources and tools.
Importance of the monitoring and control process
Finally, and to be sure that the new strategy is fully and efficiently implemented, and that the results are those expected in the plan, there is a need for a permanent monitoring and control process. Minor issues can be addressed by the local managers. In case of a major problem, a corrective action could be decided, and even the whole strategy could be reviewed. In that respect, the management returns to the first step of the process.