Strategy… Why Now?

By Jack Salvetti

Across the country, community banks of all shapes and sizes have renewed interest in strategic planning as they struggle to find an effective road map to future success. Far from the notion of planning as an annual event to meet regulatory requirements, boards and management have turned their attention to the thoughtful analysis of their banks as businesses operating in extremely competitive climates. With this shift in focus from operational “planning” to critical “strategic” thinking, one can’t help but ask: Why?

How simple and secure was the level battle field before “D-day,” deregulation. Swiftly, the rules changed, but the shadows of deregulation lingered. Bankers understood that there was an industry-wide business model that is “a way” to operate a bank. This business model included standard hours of operation, predictable competitive pricing models, an assumed band of risk tolerance, and a confidence that customers both loved and were motivated by the safety and security that community banks delivered in a friendly manner.

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