Crafting and Executing Strategy
Strategic planning is vital for the success of an organization since it enables several business ideas to be realized (Pirraglia, 2012). Business professionals should use strategic planning models so as to shape the business towards its success. In this paper, the author will focus on the importance of strategic planning for the success of RAK Bank (UAE).
A strategic plan refers to a step-by-step guide that determines where an organization is going, how it will get there, as well as realize when it gets there (Steiner, 1997). The current threats that come from the effects of globalization make strategic planning valuable; therefore, it is highly likely that an organization will fail without it. Strategic planning, therefore, will be incredibly essential to the success of RAK bank because it will help in the actualization of the following:
- Establishment of a platform that will help to attain comprehensive planning.
- Explanations of the organization’s functions to other members so as to inform, motivate, and involve such parties (Mercer, 1991).
- Serves as a framework for making decisions or for obtaining support/approval.
- Helps in benchmarking and performance monitoring within the organization.
- Helps in the stimulation of change and serves as the building block for upcoming plans (Dransfield, 2001).
As mentioned, strategic planning is critical in guiding the growth of the bank towards future success. While establishing the bank’s strategic plan, it is critical to creating a mission statement that would be essential for the bank’s success.
“We shall provide the best personal banking services to customers and strive to be the best service provider in retail and small business banking.” With this mission statement, it will be easy to measure the progress and success of the bank as this will be accomplished through the measurement of the following: Customer satisfaction, staff satisfaction, and shareholder satisfaction. Provision of the best banking services will mean that customers will get first-class services that will create customer loyalty. Hence, the bank’s high customer retention levels and growth will increase its overall profitability.
Similarly, the bank’s growth and profitability will increase its financial muscles; hence, it will be capable of rewarding its employees handsomely (Steiner, 1997). Shareholders will enjoy the company’s growth because of increased benefits linked to the growth of the bank’s financial worth. This will result from the satisfaction of both the bank’s staff and shareholders. Therefore, t is valid to assert that the above mission statement will help the bank’s operations to be successful since it will result in customer, staff, as well as shareholder satisfaction. Progress on the bank’s mission will be measured through the following:
- Customer satisfaction,
- Staff satisfaction,
- Shareholder’s satisfaction.
“Our vision is to become the best personal bank within the United Arab Emirates (UAE) and attain market leadership in retail and small business banking by the end of the year 2014.” This vision statement is in line with the bank’s mission that aims at realizing customer, staff, and shareholder satisfaction. Through the implementation of this vision, we can make strategic decisions that will enable the bank to grow towards the intended direction.
In connection, the implementation of effective strategies will benefit the bank due to high customer loyalty and retention levels; thus, turn out to be the best personal bank within the region. Customers will be happy with the efficient services offered by the bank and will register with the bank in large numbers. This would result in satisfaction from their cooperation with the bank. As a result, the bank’s financial worth will significantly improve results in the subsequent satisfaction of staff and shareholders. This vision statement, therefore, supports the bank’s mission statement because it guides the business towards the right direction that would result in the realization of the company’s mission statement.
In an effort to realize the vision and mission of the organization, we must establish key objectives that will guide us during the implementation process. Objectives play a critical role in the success of a business (Snyder & Michelle, 2011). In the same way, the following objectives are imperative for the success of RAK bank.
To be the best service provider in the industry: This objective is essential for the success of the business as it will assist in making effective strategies in line with the efficiency of the business services. This objective will be realized within the next two years, and will increase the number of potential customers; thereby, improving the company’s market share, as well as retention of customers.
To increase the market-share among corporate and personal: the realization of this objective will help in the success of the business through the establishment of a firm base among corporate and personal.
To retain current customers and increase loyalty and sales: The realization of high customer retention levels will increase the bank’s customer database, which will result in the generation of substantial finances for the business (Pirraglia, 2012).
To build a customer experience by focusing on new products and services: The bank will create an excellent customer experience by introducing new products and services such as GOLD ATM, which will allow customers to access their funds from any part of the world (Steiner, 1997).
Involvement of operations staff to reduce lead times for implementing changes: The realization of this objective will contribute to the success of the business since effective changes will be implemented within reasonable spans of time; this would be attained by engaging staff members in such activities.
Justification of Objectives
All the established objectives support the company’s mission and vision statements in the sense that they are in line with the established expectations as will be discussed below (Snyder & Michelle, 2011).
- Objective One: The bank will realize its mission and vision statements that stand by the company’s commitment to providing excellent services. This would be true so long as the bank becomes the best service provider in the region
- Objective Two: This objective also supports the bank’s vision as it will direct the business toward new growth levels that would increase its market share within the region.
- Objective Three: Also, retention of customers will increase customers and sales; hence, support the mission and vision of becoming establishing high customer, staff, and shareholder satisfaction.
- Objective Four: New product and service development will increase the bank’s efficiency in line with its mission to become the best service provider in the region.
- Objective Five: The engagement of staff members in business operations will ensure that various changes are attended to with significant levels of urgency; hence, meeting the company’s mission of becoming the best bank.
As established, strategic planning is imperative in establishing the future direction of the business. In conclusion, strategic planning within RAK Bank ensures the alignment of the business’ mission with its objectives; hence, allowing the realization of the company’s vision statement.
Dransfield, R. (2001). Corporate Strategy: Studies in Economics and Business. Jordan Hill, OX: Heinemann Educational Publishers.
Mercer, J. (1991). Strategic Planning for Public Managers. Westport, CT: Greenwood Publishing Group, Inc.
Pirraglia, W. (2012). Why is Strategic Planning Important to a Business? Web.
Snyder, N., & Michelle, G. (2011). Leadership and Vision: Importance of goals and Objectives in Leadership. Web.
Steiner, G. (1997). Strategic Planning: A Step by Step Guide. New York, NY: Free Press Paperbacks.