9 Class Hours

Instructor: Matt Miller

This course will incorporate real world strategic planning concepts utilized by the top performing banks in the industry.  The class will discuss the following key items: current external environment issues, value creation concepts, defining success in a strategic planning process, identifying a strong strategic planning process, utilizing decision tree methodology, and identifying top strategies in the current environment.  The goal is to allow students to understand strategic planning and apply these principles to their individual banks.

Course goals and objectives include:

  • Understanding how the current environment will affect a bank’s strategic plan
  • Learning the key metrics to define success in a strategic plan including how these metrics can change depending on corporate structure and key constituents
  • Defining a strong strategic planning process including decision tree methodology that can be implemented at community banks
  • Discussing key strategies used by banks in the current environment
  • Applying these lessons to a real case study to understand how all of these factors drive planning

Agenda:

Day 1 – Current External Environment Issues that need to be addressed

  • Discussion of key external issues that are facing the banking industry that need to be addressed in strategic planning

Day 2 – Value Creation and Defining Success in a strategic planning process

  • Value Creation metrics: Stock Price, EPS, TBVS, and cash dividends
  • Defining Success: Quantifiable Objectives and Goals
  • Understanding structure of your Bank and the competition
    • Public vs. Private
    • Mutual vs. Stock
    • S corp. vs. C corp.

Day 3 – What defines a strong strategic planning process

  • Typical Process and Board interaction
  • Table of Contents of the plan
    • Situation Assessment Chapters
    • Strategic Planning Chapters
  • Understanding the value of SWOTS, Vision, and Mission
  • How to get the hard discussions on the table
  • Aligning culture for strategic success

Day 4 – Decision Tree methodology

  • Decision Trees
  • Remain Independent vs Sale
    • How is this math done
  • Value Model
  • Required Detailed Modeling
    • What if scenarios and Stress Testing

Day 5 – Top Strategies in Current Environment

  • Loan growth and lender strategies
  • Deposit growth and strategies
    • Incremental cost of funds
  • Liquidity position and analytics
  • Non-interest expense reduction strategies
  • M&A

 

Annual School Session

Second Year Core Course

Competency: Financial Management & Strategy