Strategic Statement
Category: Strategy Implementation
Role of top management
The strategic statement is the long-term view the top management of the bank has over its activity. The management defines precisely the strategy, the organisation and the framework to implement it. It is only when this overall framework is clearly defined that short-term actions can remain consistent with the long-term target.
Need of a clear and well-defined plan
Such a strong statement is part of an efficient process, but also is necessary to have all the staff understanding the business orientation of its bank, and to be motivated by it. Ambiguities, unclear formulation of the strategy can therefore be inefficient internally (lack of staff motivation and of commercial and financial performance) and externally (negative views by the customers, the shareholders and the markets).
Discussion about possible strategic statements
Here, ask participants to give examples of strategic statement, that is a long-term target, precise enough. A list could be written on a paperboard. It can be real cases or pure examples:
— Banks targeting a specific market share on its domestic market
— Banks deciding to focus on a level of profitability within a certain time horizon
— Banks trying to diversify their products / customers basis. For instance, a bank located in a industrial area with a concentration on the oil industry, could like to decrease its dependency on this sector and on export credits, and develop other activities
Other profiles exist, such as banks focusing on asset management, with a precise amount of funds under management to be reached within a certain period of time