Business Strategy for Banks and Credit Unions
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Business Strategy for Banks and Credit Unions

  • 1,189 views
Uploaded on

Webinar presented on August 7, 2013 on WhyBusiness Strategy is Essential for Community Banks and Credit Unions. Recording of the webinar can be accessed......

Webinar presented on August 7, 2013 on WhyBusiness Strategy is Essential for Community Banks and Credit Unions. Recording of the webinar can be accessed http://bankblog.optirate.com/business-strategy-essential/

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,189
On Slideshare
723
From Embeds
466
Number of Embeds
5

Actions

Shares
Downloads
24
Comments
0
Likes
2

Embeds 466

http://bankblog.optirate.com 458
https://www.linkedin.com 4
http://www.linkedin.com 2
https://twitter.com 1
https://demo2test.gameffectiveapplication.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Achieving  Growth,  Loyalty  and  Profitability     Through     Concrete,  Effective,  and  Executable     Business  Strategy     for       Community  Banks     and     Credit  Unions August  2013 Serge  Milman,  Principal  Partner 415.294.1110 Serge.Milman@SFOconsultants.com Optirate.com  (blog) SFOconsultants.com  (website)
  • 2. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Agenda n State  of  the  State n Challenges  Facing  Community  Banks  and  Credit  Unions n Why  Strategy  is  Essential? n What  is  a  (true)  Strategic  Assessment? n Wrap  and  Special  Offer 2
  • 3. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 3 Serge  Milman  is  the  principal  consultant  of  SFO  Consultants.     Serge  is  a  recognized  leader  in  the  areas  of  strategy  development,   innovation,  and  operational  excellence.   Serge  has  served  clients  in  numerous  industries  &  sectors,  including   banks,  credit  unions,  insurance  companies,  brokerages,  credit  card   companies,  payment  processors,  airline  companies,  manufacturers,   universities,  and  technology  companies  during  his  more  than  20  year   career. Serge  was  a  former  founder  and  CEO  of  Optirate  –  a  service  that   aimed  to  enable  Banks  and  Credit  Unions  acquire  profitable   customers.    Previously,  Serge  was  a  vice  president  of  Wells  Fargo  Bank,   where  he  was  responsible  for  innovation  and  operational  efficiency  of   a  nearly  $2  billion  business  unit.    Serge  also  held  consulting  positions   with  Mitchell  Madison  Group  and  McKinsey  &  Co,  where  he  served   clients  in  various  industries  in  the  areas  of  corporate  finance,  strategy   and  operational  efficiency.    In  addition,  Serge  was  a  Sr.  Director  for   Exigen  Group,  where  he  founded  and  grew  an  internal  cross-­‐‑ functional  consulting  team  that  was  tasked  with  generating  revenue   based  on  a  consultative  sales  approach. Serge  contributes  to  Optirate.com,  a  blog  of  strategic  and   operational  insights  relevant  to  Community  Banks  and  Credit  Union. He  received  his  MBA  from  the  Stern  School  of  Business  at  NYU,  and   earned  an  undergraduate  degree  in  business  and  economics  from  the   University  of  California  at  Santa  Barbara  (UCSB).
  • 4. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Community  Banks  Not  Participating  In  Banking  Industry’s   Growth  And  Profitability  Recovery 4  $141    $120    $11    $11   2012  Profits >$5b $1b  -­‐‑  $5b Community   Banks 2012  Banking  Industry  Profitability     ($b) Community  Banks  earned  less  than   8%  of  the  $141b  profitability  enjoyed   by  the  industry 2012  Banking  Population  $20    $673  $21    $1.8   2012  Profits >$5b $1b  -­‐‑  $5b Community   Banks 2012  Banking  Industry  –  Average   Per  Bank  ($MM) Community   Banks 6,424  /  91% >$5b 178  /  2% $1b  -­‐‑  $5b 490  /  7% Community  Banks  represent  91%   of  the  Banking  Industry  with  a   total  of  ~6,400  institutions An  average  Community  Bank   earned  just  $1.8MM  (<10%  of  the   industry  average)
  • 5. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Competitive  Pressure  Continues  To  Skyrocket  From   Traditional  Competitors  And  Non-­‐‑Bank  Entrants   5 Mega-­‐‑Banks   and  Regionals Moving  strongly   into  Community   Bank  turf  –  small   business  banking • Mind-­‐‑Share • Product  Pricing • Technology • Value  Added   Services Non-­‐‑Bank   Entrants Winning  large   swath  of   traditional  Retail   Banking  Base • Awareness  /  PR • Low  Cost • Technology • User  Experience Community   Banks  and   Credit  Unions Cut  throat   competition  for   best  customers • “Local”  factor? • Perception  of   berer  service? Impact Leverage
  • 6. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Competition  Beginning  To  Impact  Community  Banks 6  $1195    $1183    $1176   2010 2011 2012 Deposit  Base   (Banks  with  Assets  <  $1b) 1.37% 1.02% 0.76% 2010 2011 2012 Deposit  Rates (Banks  with  Assets  <  $1b)  $922    $874    $853   2010 2011 2012 Loans (Banks  with  Assets  <  $1b) 3.79% 3.82% 3.72% 2010 2011 2012 NIM (Banks  with  Assets  <  $1b) 77% 74% 73% 2010 2011 2012 Loan  /  Deposit  Ratio (Banks  with  Assets  <  $1b) Source:  FDIC  SDI
  • 7. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Competitive  Impact  Not  As  Severe  On  Slightly  Larger  Banks 7  $778    $770    $785   2010 2011 2012 Deposit  Base  ($b) (Banks  with  Assets  $1b  -­‐‑  5b) 1.24% 0.90% 0.65% 2010 2011 2012 Deposit  Rates (Banks  with  Assets  $1b  -­‐‑  $5b)  $624    $599    $603   2010 2011 2012 Loans (Banks  with  Assets  $1b  -­‐‑  $5b) 3.63% 3.84% 3.74% 2010 2011 2012 NIM (Banks  with  Assets  $1b  -­‐‑  $5b) 80% 78% 77% 2010 2011 2012 Loan  /  Deposit  Ratio (Banks  with  Assets  $1b  -­‐‑  $5b) Source:  FDIC  SDI
  • 8. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Weak  Franchise  Value  Plague  Community  Banks 8 Ø  Anemic  Growth Ø  Weak  Profitability  (fueled  in  part  by   unsustainable  cost  structure) Ø  Heightened  Regulatory  Pressure Ø  Changing  Consumer  Preferences Ø  Escalating  Competitive  Pressure þ  New  Capital  available   at  a  steep  discount þ  Lirle  or  no  interest   from  acquirers þ  70%  -­‐‑  90%  P/B
  • 9. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Overcoming  Challenges  Requires  Proactive  Action 9 R e v e n u e s P r o f i t s Growth  of  Existing  Business Growth  of  Existing  Business q  Wallet  Share q  Lending q  Fee  Income Growth  from  New  Business Growth  from  New  Business q  New  Geog  Markets q  New  Products  /  Services q  Fee  Income q  Acquisitions Cost  Management Cost  Management q  Channel  Rationalization   q  Staff  Rationalization q  Sourcing
  • 10. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Challenges  in  Growing  Existing  Business 10 Wallet  Share q  20%  customers  =  240%  Profits q  Most  Banks  don’t  know  which   customers  are  their  “20%” q  Avg  10%  -­‐‑  20%  wallet  share q  2  Products  /  customer q  Products  &  services  offered  on   a  “spray  &  pray”  approach q  Segmentation q  Needs  Assessment Lending “60%  of  Community  Bankers  expect  to  grow   through  C&I  lending  in  2013”   –  Desperately  Seeking  Loan  Growth,   BankDirector.com Yields T&Cs Competition Limited  Asset  Growth   with  continued   pressure  on  NIM Fee  Income q  Retail  checking  fee  income  (account  fees,  OD,  interchange   fees)  likely  to  evaporate   q  Free  offers  from  Community  Banks  (and  Credit  Unions) q  Prepaid  (goBank,  BlueBird) q  Schwab,  Fidelity,  etc. q  Simple,  Moven,  Discover q  Few  other  meaningful  Fee  Income  streams
  • 11. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Challenges  in  Achieving  Growth  From  New  Businesses   11 New  Geographic  Market  Entry q  Requires  extensive  planning q  Expensive  in  cost,  management  and   staff  time  commitment q  Most  new  locations  fail  to  generate   expected  revenue q  Most  new  locations  are  unprofitable q  Few  retail  customers  want  /  need   branches;  business  customers  best   serviced  at  their  location New  Product  &  Service q  Requires  deep  understanding  of   customers’  needs q  “Me  too”  strategies  likely  to  lead  to   further  commoditization  and  inability   to  generate  profit q  Products  &  Services  must  increase   loyalty  (wallet  share)  and  profitability q  Expand  into  “non-­‐‑traditional”  Retail   Bank  Services New  Fee  Income q  Product  Development  charged  with   creation  of  differentiated  and  value-­‐‑ add  products q  “Me-­‐‑too”  products  may  result  in   customer  acceptance  but  not   profitability  or  increased  loyalty q  Cross-­‐‑sell  programs  essential  to   generate  customer  acceptance Acquisitions q  Requires  access  to  capital q  Target  assessment  and  due  diligence   require  specialized  (and  costly)  skills q  Recognizing  synergies  requires   focused  execution  with  laser-­‐‑like   focus  on  metrics
  • 12. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Challenges  With  Cost  Management 12 Operational  Efficiency  requires   Focus  on   Customer   Needs Slaying  The   “Sacred   Cows” Channel   Rationalization Staff Rationalization Sourcing
  • 13. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 13 Strategy  is  a   coherent  set  of  choices  about where-­‐‑to-­‐‑play  (WTP)  and   how-­‐‑to-­‐‑win  (HTW)   and,   if  that  WTP  &  HTW  is  significantly  different  than  the  current  one,   a  credible  path  for  gering  from  the  present  to  the  targeted  state.                                                                                                                        -­‐‑  Roger  Martin,  Dean  of  the  Rotman  School  of  Management   and  author  of  Playing  to  Win:  How  Strategy  Really  Works
  • 14. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 14 But  I  don’t  need   no  stinking   strategy…
  • 15. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 15 But  my  Bank  …   is  the  most  respected  ,   has  the  highest  rating   in  the  community…   much  higher  than  the   larger  Banks Then  performance  should  reflect ✖  20%+  annual  revenue  growth  rate ✖  15%  -­‐‑  20%+  ROE ✖  2x  Book  Value
  • 16. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 16 6.90% 2.51% 1.52% 1.29% 1.05% 0.87% 0.77% 0.72% 0.59% Branch  Operating  Costs,  %  Deposits But  my  Bank  can   just…   open  a  branch  to   generate  incremental   growth  and   profitability Source:    Optirate,  Will  the  Bank  Branch  Ever  Return  to  Profitability,   hrp://bankblog.optirate.com/bank-­‐‑branch-­‐‑profitability/      
  • 17. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 17 Yes,  but ?  Will  the  “high-­‐‑tide”  come? ?  When? ?  Will  the  Bank  be  around  to   enjoy  it? Are  you  willing  to  bet  your  Bank   on  the  ‘hope’  strategy? But  my  Bank  can   just…   wait  for  the  “high-­‐‑tide   to  lift  all  boats”
  • 18. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 18 Yes,  but ?  Most  consumers  don’t  need   more  than  a  set  of  basic  services   (DDA,  Debit,  Direct  Deposit,   Bill  Pay)  which  generate  non-­‐‑ operating  losses ?  80%  customers  =  140%  Profit   Loss But  my  Bank  can   just… sell  more  to  existing   customers  (or  sell   more  DDAs)
  • 19. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 19 “60%  of  Community  Bankers  expect  to   grow  through  C&I  lending  in  2013”   –  Desperately  Seeking  Loan  Growth,   BankDirector.com Yields T&Cs Competition Limited  Asset   Growth  with   continued  pressure   on  NIM But  my  Bank  can   just  …   write  more  C&I   loans
  • 20. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 20 But… ?  PFM  lacks  widespread  awareness   and  even  weaker  usage  rates ?  Uncertain  business  case  for   revenue  &  profit  growth 19% 8% Awareness Use PFM  Penetration But  my  Bank  can   just… Grow  loyalty  with   PFM  (or  merchant   funded  discounts,  etc.) Source:  Optirate,  ComScore’s  2011  State  of  Online  &  Mobile   Banking  Raises  Red  Flags,   hrp://bankblog.optirate.com/comscore-­‐‑2011-­‐‑online-­‐‑mobile-­‐‑ banking-­‐‑red-­‐‑flags/      
  • 21. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 21 But… ?  Most  lack  clear   pathways  to  growth   and  ROE ?  Require  expertise  and   investment  that  are  not   readily  available ?  There  are  many  good   opportunities,  but   ?  which  ones  are  the   right  one  for  your   bank?  your   customers? ?  in  what  order   should  they  be   deployed? ?  how  best  to  extract   value  from  each? But  my  Bank  can   just… PFM Mobile P2P Under-­‐‑ banked Un-­‐‑ Banked Merchant   Funded   Rewards Free   Checking Prepaid Reward   Checking Wealth   Management Asset   Based   Lending Investments Life   Insurance Financial   Literacy Treasury   (SMB) Payroll   (SMB) Merchant   Services   (SMB) E-­‐‑ Commerce   (SMB) Cash   Flow   Mngmt   (SMB) GenY OD   Transfer ACH,  Cash   Concentr,   Positive   Pay  (SMB)
  • 22. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com 22 76% 91% 100% 132% 173% 165% 84% 94% 118% 126% <$250MM $250  -­‐‑   500MM $500  -­‐‑  1b $1  -­‐‑  5b $5b  -­‐‑  25b >$25b McAdams,  Wright,  Ragen Mercer  Capital But  my  Bank  can   just… Sell  itself  to  the   highest  bidder Community  Banks -­‐‑37% 0% -­‐‑14% 38% <$250MM $250  -­‐‑  500MM $500  -­‐‑  1b $1  -­‐‑  5b Volume  of  Acquisitions,  6mo  2013 %  Increase  from  2012 Source:  CB  Resource 146  /  <44%> 152  /  <20%> 141  /  <15%> 183  /  <30%> 35  /  <5%> 63  /  354% 31  /  317% 117  /  121% 101  /  <9%> 118  /  9% 79  /  16% 144  /  <1%> <$250MM $250  -­‐‑  500MM $500  -­‐‑  1b $1  -­‐‑  5b Low,  Avg  and  High  P/B  Acquisition  Multiples   YTD  2013  (%  Increase  from  2012) Source:  CB  Resource Trading  Multiples  -­‐‑  Price  /  Book  Ratios Source:  McAdams,  Wright,  Ragen,  Q1  2013  and   Mercer  Capital  Public  Bank  Peer  Report,  4/9/2013
  • 23. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com T a c t i c s T a c t i c s T a c t i c s T a c t i c s More  Than  Ever,  Knowing  ‘What  To  Do’  Requires  A   Comprehensive  Strategy 23 Strategy Results Business  Strategy  serves  as  the   foundation  guiding  and   enabling  adjustments  to  ensure   success Results  are  a  function  of  both  a   clearly  spelled  out  strategy  and   strong  execution  and  serve  as   the  basis  for  ongoing  review  &   improvement Tactical  execution  must  always   support  business  goals  which   help  to  set  priorities
  • 24. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 24 Business   Strategy ?  How  does  Value   Proposition  address  the   needs,  wants  and  demands   of  our  current  and   prospective  customer  base?     ?  Is  the  Value  Proposition   compelling?     ?  How  does  it  differentiate   us  from  the  competition?     ?  What  is  our  competitive   advantage  (how  are  we   berer,  faster,  cheaper,  how   do  we  add  more  value,  do   we  provide  a  unique   offering  as  compared  to  the   competition)?     ?  How  do  our  customers   recognize  our  Brand?    Why   is  this  important  to  us?     ?  How  does  this  enhance  the   value  of  the  organization? Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 25. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 25 ?  What  are  the   needs  &  wants  of   our  current  and   prospective   customer  base?   Today?   Tomorrow? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 26. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 26 ?  What  are  the  profiles   of  the  current   customer  base?     ?  Which  customer   profiles  are  more   important  to  our   organization? ?  Are  we  targeting  the   right  customers   given  our  Value   Proposition? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 27. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 27 ?  How  do  our   products  &   services  deliver   on  our  Value   Proposition?     What  are  the   gaps? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 28. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 28 ?  What  channels  are   we  using  for  sales   and  support?     ?  Are  these  the  most   efficient  and   effective  channels?     ?  What  other  channels   are  available  and   why  have  we   determined  not  use   them?     ?  How  do  we  align   channels,  products  /   services,  customer   profiles,  VOC  and   pricing? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 29. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 29 ?  What   geographies  and   locales  are   important  to  us   and  why?     ?  Are  we  currently   dominating  in   these   geographies?    If   not,  why  not?   How  will  we   change  this?     ?  What  are  the   compelling   reasons  for   geographic  focus?     ?  Is  our  Value   Proposition   restricted  to   specific   geographies?     Should  it  be? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 30. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 30 ?  What  resources  are   required  to  deliver   on  our  Value   Proposition?     ?  Do  we  own  the   necessary  resources   in  sufficient   quantities? ?  Have  we  leveraged   the  right  capabilities   so  as  to  focus   extending  our   differentiation  in  the   market  place?     ?  Do  we  have   sufficient  capabilities   and  resources  to   deliver  on   customers’   expectations?   ?  Should  we  address   the  gaps  or  should   we  choose  to  abstain   from  providing  those   products  &  services? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 31. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 31 ?  What  is  revenue   and  cost   implications  for   the  various   products  /   services,   customer   profiles,  and   channels?     ?  Do  we  have  the   capability  of   participating  in   all  of  the  current   segments?     ?  What  other   sectors  should  be   investigated  that   further  Value   Proposition  and   customers’   needs? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 32. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Assessment  Begins  With  Explicit  Definition  of   Business  Strategy  (WHAT  &  WHY) 32 ?  What  factors  /   events  have  a   likelihood  to   disrupt  our   Value   Proposition,   our   differentiation,   and  impact  our   Revenue  and   Cost  Models?     ?  How  do  we   anticipate  such   events  and   negate  these   impacts? Business   Strategy Value   Proposition Voice  of  the   Customer Customer   Profile Products  &   Services Channels Geographies  &   Locales Resources,   Partners  and   Competency Revenue  &   Cost  Models Sustainability
  • 33. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategic  Plan  must  then  be  distributed  across  the   organization  to  ensure  alignment,  enhancement  and   required  change-­‐‑management  (HOW,  WHO  &  WHEN) 33 Operationalization  of  strategic  plan q  Technology  assessment q  Customer  segmentation,  acquisition   &  retention q  Relationship  Management  planning q  Product  management q  Pricing  plans  and  target  revenue  &     profitability q  Marketing  Channels  &  Messages q  Staff  retention  &  incentive  plans q  Channel  rationalization q  Performance  Tracking  and   Improvement  Planning IT   Strategy Staffing Channel   Management Pricing  /   Credit Product   Development Corporate Development Marketing   Strategy •  LT  Goals •  ST  Business   Objectives  &   Value  Drivers •  Performance   Metrics
  • 34. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Measurement  and  Continual  Improvement  Programs  are   Essential  for  a  successful  Business  Strategy  Implementation 34 Business   Strategy IT   Strategy Staffing Channel   Management Pricing  /   Credit Product   Development Corporate Development Marketing   Strategy Ongoing  Performance   Measurement  &  Improvement •  Benchmark  all  operations  to   a  small  number  of  essential   business  KPIs •  Measure  daily  /  weekly  and   share  performance  widely •  Implement  improvement   program  as  necessary
  • 35. 415.294.1110    |    info@SFOconsultants.com  |  SFOconsultants.com  |  Optirate.com Strategy  and  Tactical  Planning  timeframes  vary,  but  can  be   completed  in  as  likle  as  10  weeks 35 Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10 Business  Strategy Initial  Data  Gathering Business  Strategy  Prep  Meeting Business  Strategy  Planning Draft  Plan Plan  Approval Tactical  Execution Product  Development  Plan Relationship  Management  Plan IT  Plan Marketing  Plan Internal  Operations  Plan Finalize  Plan Implementation
  • 36. Q&A:  Achieving  Growth,  Loyalty  and  Profitability  Through   Concrete,  Effective,  and  Executable  Business  Strategy     for  Community  Banks  and  Credit  Unions August  2013 Serge  Milman,  Principal  Partner 415.294.1110 Serge.Milman@SFOconsultants.com Optirate.com  (blog) SFOconsultants.com  (website) Special  Offer:   60  Minute  Consultation  At  No-­‐‑Charge