Open AccessStrategic planning in financial institutions
Author(s) -
Kenneth C. Krogh
Publication year - 1982
Publication title -
south african journal of business management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 15
eISSN - 2078-5976
pISSN - 2078-5585
DOI - 10.4102/sajbm.v13i2.1173
Subject(s) - strategic planning , strategic business unit , mission statement , business , strategic financial management , strategic control , process management , action (physics) , control (management) , action plan , strategic human resource planning , service (business) , plan (archaeology) , unit (ring theory) , strategic management , strategic alignment , financial plan , finance , marketing , management , economics , physics , mathematics education , mathematics , archaeology , quantum mechanics , history
The article outlines an approach to strategic planning for financial institutions in which functional strategic plans are first developed for each business unit or unique area of service in the organization. The bank's overall strategic plan is then developed by approving or modifying individual plans so that resources are channelled into areas offering the greatest potential for achievement of the bank's goals. The strategic planning cycle for each line of business should include eight planning elements: mission statement; internal analysis including the unit's strengths and weaknesses; external analysis which includes opportunities and threats in the environment; goals and objectives; strategies for action; management review action; planning for implementation; and continuous evaluation of performance of both people and products in terms of the strategic plan and stated objectives. Several models are shown to illustrate the process.