Instructions for Strategic Plan
A strategic plan is a roadmap to grow your bank. Use the strategic plan template provided and complete each of the key sections. Your plan should be between two and three pages (three pages max) in length. Instructions for each section follow:
Section 1: Executive Summary
The Executive Summary of your strategic plan should be completed last, and this section merely summarizes each of the other sections of your plan.
The Executive Summary is important since it will help other key constituents, such as investors, quickly understand and support your plan.
Section 2: Goals
Setting and achieving goals is a critical element of your strategic plan. The key is to first identify your five-year or long-term goals. Next, identify one-year goals that you must achieve in the next year for it to be successful and to put your bank on the right trajectory to achieving your five-year goals.
Section 3: Key Performance Indicators (KPI’s)
Great businesses understand their metrics and KPI’s. By setting targets and tracking your KPI’s, you know exactly how your bank is performing and can adjust as needed.
For example, a basic KPI such as Net Interest Margin is critical for understanding if the company is performing well. Comparison of your KPI’s to your competitors may indicate areas of strength or weakness. “Underlying” KPIs are equally as important. For example, the Net Interest Margin is affected by the average yield on loans, and/or the average yield on deposits. You may want to set targets and track these underlying KPI’s as well (or not).
It is critical to identify three or four of the KPI’s you will track in your bank and list them in this section of your strategic plan.
Section 4: SWOT Analysis
The reason to include a SWOT analysis (analysis of your Strengths, Weaknesses, Opportunities and Threats) in your Strategic Plan is to help you determine the best opportunities to pursue to achieve your growth goals. It also helps you identify which strengths you must develop in the near future to improve your bank.
Section 5: Industry Analysis & Target Customers
Your industry analysis doesn’t have to be a comprehensive report on what’s going on in your market. However, you should conduct an analysis to determine which segments within the market provide opportunities for growth.
Section 6: Marketing Strategy
Identify the wants and needs of each of your target customer groups and how you intend to satisfy those needs. What will be your differentiating factors? How will you determine your pricing and risk parameters.
Low cost / Low price
High touch / High margin
Boutique niche lender
Relationship oriented
High tech delivery
