Strategic planning can mean different things from one bank to another, and its complexity often varies based on size and goals. Some banks lean more toward short-term operational planning and may not look out five years. Others incorporate operational planning as part of a broader strategic process. In any case, planning is essential to understanding where the bank is today, where leadership and shareholders envision the bank in five years, how those goals are communicated across departments, and how the organization will get there.
A strategic plan should establish a clear direction with input from all levels of the bank. The process should leverage appropriate resources throughout the organization to drive progress toward the bank’s long-term vision and goals.
In my opinion, a strategic plan should look out over a one- to five-year period. While years four and five can be more uncertain due to the many challenges a bank may face, they remain tied to the direction established in the plan. The near-term years, meanwhile, serve as the roadmap for reaching the five-year objective.
To begin the strategic planning process, I recommend reviewing the bank’s mission and vision to ensure they still align with where the organization stands today. All employees should know and understand these statements, as they help define the bank’s values and guiding principles. Open communication around the mission and vision also builds shared ownership across the organization.
The next step we use at our bank is a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. This exercise identifies the strengths to leverage, organizational weaknesses to improve, opportunities to pursue and threats to prepare for as the bank charts its long-term direction.
After completing these foundational steps, the process of defining strategic goals and how to achieve them becomes clearer. While short-term operational planning may involve numerous actions and objectives, the strategic plan should focus on a smaller number of initiatives that will have the greatest long-term impact on the bank.
Once the strategic goals are established, the bank should develop strategies and processes to achieve them, incorporating input from multiple departments. A well-designed strategic plan aligns all levels of the organization and clarifies how each contributes to long-term success. After implementation, it is important to assign accountability, track progress, and adjust as conditions change. At our bank, we review the plan’s goals and SWOT analysis around midyear to determine whether any updates or course corrections are needed.
Strategic planning requires time, effort and ongoing reassessment. While no one has a crystal ball to predict the future, a thoughtful strategic plan provides the best framework for establishing long-term direction and priorities.
From both research and experience, I have found that strategic planning varies widely among organizations. No plan is one-size-fits-all, and the level of detail should reflect your bank’s unique needs and goals.
What matters most is not the format of your strategic plan, but the discipline behind it — setting clear direction, engaging the organization and consistently measuring progress. When strategic planning becomes an ongoing leadership practice rather than a periodic exercise, it strengthens decision-making, builds alignment and positions the bank to adapt and succeed in a changing environment.
