You’re probably already aware that the 2020-21 strategic cycle will prove to be the most important in more than a decade. Banking – and the world at large – has seen tremendous change because of the COVID-19 global health crisis. Customer behaviors are shifting, as are their needs and expectations. The economy is uncertain. Financial institutions are feeling the earnings pressure and organizations must be agile to address and face these challenges in the months and year ahead. It could mean the difference between success or merely surviving.
The Gap between Ambition and Performance
The majority of strategic initiatives that fail do so because of poor execution. Poor execution can look like a lot of different things: misjudged market opportunity, lack of alignment with core competencies, stakeholders who didn’t understand or commit to the strategy, or having the wrong people in the wrong seats (HBR, 2016).
These shortcomings are often a result of a traditional, linear strategic planning process, which puts planning in front of vision, and vision in front of execution. This process falls short at both ends: Research into customers and markets isn’t always up to date and reflective of the current situation and execution only begins months after the planning process is completed. As a result, plans become misaligned quickly, priorities can’t be shifted, and a disconnect between vision and implementation gets in the way.
No team ventures into the strategic planning process hoping their initiatives fail. However, the current situation demands that organizations do things differently.
Insight powers vision
The planning process should invite your leadership team to look thoroughly, thoughtfully, and closely at your organization and do the hard work required. Assumptions must be challenged. An honest appraisal of who you are and what you need to be allows you to uncover both the challenges and opportunities that you will face in the coming year and beyond. Your planning should be informed by insightful analysis of your customers, markets, and competitors that will help block threats and shape opportunity. Conducting a thorough review of your customer base will provide you with a greater understanding of their needs and wants, and allow you to move forward in a relevant and valuable capacity.
Aligned Urgency
You could have the best plan in the world, and it will still fail without effective implementation. Your vision is important – but it’s not as important as accountability, focus, and discipline in execution. This focus is crucial, and yet 85% of leadership teams spend less than one hour per month discussing strategy (Kapler, HBR 2011).
There’s a Better Way
We believe there’s a better way to plan. Galapagos has partnered with EOS Worldwide on a new approach to strategic planning. Galapagos provides expertise in the Financial Services industry, while EOS facilitates the introduction and application of planning concepts and practical tools that have helped thousands of businesses in the U.S. and worldwide, face challenges and maximize performance. Our approach places joint emphasis on insight and traction to better frame – and execute – your vision.
Insight provides the knowledge to assess the customer and market opportunity and challenges the status quo. Traction builds the organizational discipline and accountability needed to execute on the vision and connects your daily activity to strategic priorities. Once insight and traction are aligned, teams are better able to define the road map to achieve superior performance while ensuring that everyone is 100% on the same page.
It’s not always ambition that wins the strategic planning race. It’s focus, accountability and discipline that will keep your team on track in their plan implementation.
The 2020/2021 planning cycle will prove to be the most important in over a decade. The impact of COVID-19 on all aspects of the business is huge and potentially long lasting. Galapagos has been working to monitor what we think are the major challenges our clients will face. We’ve pulled together our research around these six strategic priorities. We’d love to meet with you to share our findings.