Page 48 - Banking Finance February 2023

ARTICLE

successful as a Branch or Unit head, you need to deeply Diagnose Current Strategic Position of
understand your business and your industry. Here are five
your Unit/ Branch
strategic pieces every branch head/unit head should know.
I. The vision of the organization and the long-term Strategic business planning helps us in a better position to
goals: Before you can act, you need to understand accomplish what we set out to do, especially in the future.
where you are headed. Knowing the long-term goals Thus, strategic business planning, is a tool for organising the
will ensure you have the information you need to create present on the basis of the projections of the desired future
the plan to get there. - it is a road map to lead your Unit/Branch from where it is
now to where it would like to be in five next years. Before
II. The current state of the branch/unit: Before you can
developing strategic plan to achieving the desired results,
design the plan of how to achieve the long-term goals,
some ground work needs to be done, which includes the
you need to take a long, hard look at where you are
following analysis-
now. This is commonly called a SWOT analysis, strengths,
1. Unit/Branch Analysis
weaknesses, opportunities, and threats. Take a good,
hard, honest look at the condition of your branch. 2. Market Analysis
III. The state of the industry: What is happening in your 3. Competition Analysis
industry? How is it changing? How is the market 4. Sector and macro environment Analysis
impacting it? What is happening with technology, and
what new products and services are being created?
Unit/Branch Analysis: - First and foremost, identify your
Understanding the industry, what is developing in it, will
unit's strengths. This set of strengths is the basis for strategic
help you make change that will be strategically
decisions about competitive advantage development.
successful.
Strategy should largely be built on developing strengths (do
IV. What are challenges and opportunities of area: What not focus too much on eliminating weaknesses). Some of the
are the business of the competitors, what is the other aspects are:
potential of the area, which segment of the prospects Business figures- Segment wise trends and movements
should you target etc.
Available resources- Staff strength, Infrastructure
V. A good outside perspective: A holistic understanding
Branch image: In the area and among the residence of
of what is happening outside of your branch business.
the area
What trends do you see with society, competition, and
Audit rating & Level of compliance,
with customers? Getting a solid grasp on the external
will ensure you make smarter moves when it comes to Branch/Unit working culture (Behavioural aspects)
the internal.
Market Analysis: - In this step we profile and understands
the target/potential market.
Who are my strategic customers? (Existing & Prospects)
Where to serve? (Potential area/customer segment)
What are the needs, wants, preferences, values and
priorities of the customers you are currently serving or
would like to serve?
Deepen your understanding of current customers
Identify opportunities for future business development.
How to Achieve more effective outreach.

Competition Analysis: - The competition" also includes
the informal sector … (MFIs') ask yourself the following
questions:

42 | 2023 | FEBRUARY | BANKING FINANCE