Strategic Planning: Why You Should Include Future Leaders at the Table

Sound strategic plans are essential to the long-term success of a financial institution, and involving the right people in the process is vital to an organization’s success. Too often, senior leaders overlook the value of inviting and including their young future leaders at the table. Mikelle Brady, PRI partner, says PRI has seen in its work the many benefits of including future leaders, and note that they are increasingly important in the current highly competitive environments where margins are tight and the war for talent is on.  

According to Brady, the value of inviting your future leaders into the strategic planning process includes:

• Fresh perspective. Future leaders are unhindered by “the way we’ve always done it” syndrome and can offer a different point of view. They can also be more in touch with what resonates with younger customers and the demographics the institution is targeting for growth.
• Executive-level experience. This is more important than ever as a war for talent rages and Baby Boomer executives retire and scale back on leadership roles. This war for talent can be particularly pronounced in the geographic areas that smaller community banks serve, and developing future leaders now gives the institution choices if it finds itself in a position to be sold or acquired. Getting future leaders involved in the strategic planning process offers a deliberate step in crucial executive succession planning.  
• Increased engagement. Millennials and Gen Z employees want the opportunity to make an impact with their work. Young future leaders are more likely to move on to the next job if they don’t feel they’re contributing or doing something bigger than themselves. Implementing a strategic plan that they have participated in formulating increases engagement and helps with retention.
• Escape from silos. Being involved in strategic planning and implementation gets employees out of their silos and offers more potential leaders a bird’s-eye view of the financial institution.
• Learning by doing. Often, executives are coached up to the next level of leadership through formal education and training like banking school. This form of coaching is valuable and necessary but can also be expensive and time consuming. Involving future leaders in a process that is already taking place gives them exposure to internal directors and long-term planning and provides solid education through experience.

PRI’s strategic planning service and the process for developing a three-year, dynamic strategic plan offers many opportunities to involve the institution’s young leaders, Brady said. Invite young leaders to take part in one or more of these strategic planning steps:

• Pre-planning. This is an area where young future leaders can get a look into every facet of how the financial institution operates and how different departments interact with each other. It also typically provides an in depth-education about who is the customer, what do they want and how does the organization function in and support the community? What are its cost and revenue centers? What differentiates it from its competitors?
• Strategic planning sessions with management and the board of directors. Facilitated sessions bring all the players together to create the strategic plan and implement it. Inviting future leaders to be on a team that focuses on a specific strategic goal is an excellent way to engage them in achieving the desired outcomes of the plan. The Forbes article Building Future Leaders: Proactive Strategies for Talent Development says, “Practical experience is often the best teacher. Giving promising employees the chance to lead projects or initiatives allows them to develop and showcase their leadership skills.”
• Drafting and publishing the plan. Communicating out the goals and later the milestone achievements of the strategic plan is a great assignment for an up-and-coming leader, Brady said. Having to synthesize and effectively share information with colleagues and senior leaders increases engagement and buy-in to the bank’s priorities – for everyone. As implementation progresses, young leaders also can participate in communicating with and educating customers and the community about changes in processes or successes.
• Track and measure quarterly results. Future leaders can be involved in determining the best ways to measure and report results to senior leadership and the board of directors. Seeing results happening on the ground and being able to communicate them to the organization in a timely and effective manner can be highly motivating and meaningful.

Too often, the strategic planning process can be a “check the box” activity to satisfy regulations and requirements. Smart institutions use it instead as an additional vehicle to educate and utilize their young future leaders. When tomorrow’s executives help implement a well-considered strategic plan and achieve the desired benchmarks, it will position them to grow in their careers while strengthening the FI and increasing profitability. That’s a win-win solution for everyone.

Resources 

Strategic Planning – PRI 

Executive Succession Planning Plays Vital Role in Long-Term Bank Health – PRI 

Building Future Leaders: Proactive Strategies for Talent Development – Forbes 

What is Strategic Planning? A 5-Step Guide – Asana 

Profit Resources specializes in identifying profitability improvement areas for financial institutions through revenue growth, cost control, streamlining processes, and effective use of technology. Contact us to learn more about our personalized approach to strategic planning to propel growth and improve profitability.