Strategic Planning: Areas of Focus for the Senior Leadership Team
May 1, 2024
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4 minute read – In a previous blog, we discussed shifting from the traditional approach to strategic planning toward a more continuous approach in order to help your team be better prepared for the unpredictability of tomorrow. If you haven’t read that blog, we recommend starting there. This blog outlines some of the important topics that have come out of strategic planning sessions in which strategic thinking has played a significant role. The following topics are just a few sparks for conversations. As you approach these topics, practice incorporating the mindset tips from the previous blog:
- Data and Business Intelligence – The world is estimated to have generated 120 zettabytes of data in 2023. (For those of us not familiar with the term zettabyte, one zettabyte is equal to a trillion gigabytes and one gigabyte is about 350,000 emails. That’s a lot of data.) The average financial institution does not have access to quite that much data but compared to even just a few short years ago, we are swimming in data. Having said that, raw data does not provide much insight so for many of our clients the focus is on how to utilize data through business intelligence.
- AI Governance – If you have looked at the news headlines in the last 18 months, you have probably heard about ChatGPT and know that AI has become the buzz across numerous industries. We believe that AI is a powerful tool that can be harnessed broadly within the financial industry from in-depth Business Intelligence to enhancing call center experience. However, like any powerful tool, it is essential to establish policies, practices, and rules that govern how to manage, develop, and use AI. While engaging in discussion around AI governance, consider bias risk, fairness, and safety. And don’t forget that AI policy needs to include third party usage – how are your vendors engaging with AI and how do you mitigate those risks. Keeping your organization’s purpose front and center can help you determine what policies are right for you and your consumers.
- Talent Development – This is not a new topic for most organizations but with the aforementioned shifts in the world of data and technology, the conversations around talent have changed. Financial institutions are rethinking their organizational structures, taking a strategic approach to people planning, and acknowledging that the future of roles and responsibilities are open to changing along with the world at large. Many places are approaching talent development with a focus on critical thinking and adaptability, upskilling precious talent. No one knows what the future will bring but we do know that it will require individuals and organizations to think differently.
- Growth – Similar to talent, this isn’t necessarily a new topic, but organizations are changing how they approach the topic. It has become essential that financial institutions are clear on what is meant by growth and the why behind it. Growth can be measured in membership, assets, loans, branch, revenue, digital footprint, and more so it’s essential that organizations are clear what kind of growth is important and the implications of working towards that growth. Consider environmental factors and the cost of growth. The KPIs of the past ten years may not be as relevant given the rapid and complex pace of change. Bringing stakeholders together to determine what growth looks like can help link strategy, financial performance, and risk tolerance.
These are just a few of the areas of discussion that financial institutions have been pushing their thinking. The crucial component to each of these discussions is to be willing to imagine and prepare for multiple futures beyond the next 12-18 months or even the next 3-5 years. Acknowledging that how the financial industry has functioned for the past three decades is transforming, can enable the thinking behind strategic planning to advance by leaps and bounds.
