If an organization is not committed to implementing the strategy, the planning effort may turn into a demoralizing factor . A plan may fail if the right people are not involved in the process.
Or if the effort is just a minor iteration of past annual efforts.
For the past few years, the top trends mirrored the top strategic objectives mentioned by financial services organizations worldwide.
The top five areas that almost every organization agreed upon as being important for success (in slightly different orders each year) were: These are all valid objectives, with the prioritization of these objectives being different at every organization.
Done well, a strategic planning process allows organizations to set a direction, providing objectives and goals that are used for assessing progress across the organization.
Strategic planning also allows organizations to be proactive, by better understanding opportunities and threats that may be on the horizon.Consumers want simple ways to interact with their financial institution that will be contextual to their personalized needs. they do not want to visit a branch unless absolutely necessary.They want financial solutions that are proactive and reflect real-time activities and needs, not pre-scheduled product campaign messages that provide minimal value.Despite being the primary stated strategic objective for most financial services organizations, most customer journeys have not changed much since the early 1980s.This is not because the consumer hasn’t changed — most banks and credit unions have not adjusted to market realities.More than 50% of banking transactions are now conducted through digital channels.This not only impacts how a consumer researches and selects their financial institution, but also how transactions are conducted.But strategic planning without action is worse than doing nothing at all.The benefits of strategic planning are well documented.The biggest barrier is the inability of many banks and credit unions to change.The best planning efforts will never drive positive outcomes if institutions don’t commit to, and invest in, strategies that will change the way they do business.