Chapter-10
IMPLEMENTATION/ACTION PLAN
Every organization has its own strengths, weaknesses and possesses opportunities for improvements. Nothing is impossible in this world, as someone has rightly said, an impossible is often untried”.
Here are the implementation/action plans for the recommendations concluded in the previous chapter.
BUSINESS DEVELOPMENT PLAN:
In order to develop the implementation procedure to reach business development objective, the following steps should be taken:
1. CAMPAIGNS TO OPEN MORE ACCOUNTS:
The volume of business, profits and size of bank depends significantly upon the number of account holders banking with it. In order to increase the number of accounts, There should be a clear market plan. The strategy should be to either penetrate a new market or increase the share of a given market.
The staff, branch managers and executives involved in business development should prepare lists of different groups of prospective account holders and their neighbors, friends and influential people and make efforts to open their volume of business and deposit composition. This should be done in coordination with the various branches of the Bank.
The campaign to op0en more and more accounts should be launched on yearly basis by fixing monthly targets to open new accounts, and targets should be reviewed after every month by the circles concerned in the Head Office.
2. CAMPAIGNS FOR MOBILIZATION OF DEPOSITS:
Deposits are the main source of commercial bank funds and without them banks cannot exist. It is very important for an individual bank to get funds, as its one basic function is to put them to work safely and profitably.
The act of attracting funds is important but, likes so many other processes of a salesmanship, is intangible. The bank can get funds by advertising for them, by direct salutation, by contact through their officers, managers and executives. Thus, they can get the customers and hold them ultimately by furnishing the kinds of banking services that depositors feel is what they want should have.
One of the best way to retain deposits and increase is by courteous and efficient services for the satisfaction of the needs and requirements of the customers, because:
“A satisfied customer is a best advertisement”.
3. CAMPAIGNS TO INCREASE BUSINESS SHARE:
Campaigns to secure highest share of business like imports, exports, issuance of guarantee, remittances, bills identification of productive, secure and easily realizable advances etc. should be launched. The management of the bank should prepare a business developments plan strategy by taking into accounts the overall market position of the banks in the business, the market share of the Bank and the proposed plan to achieve the market share in the banking industry. In the light of the market share, business development targets should be fixed on annual basis by fixing monthly targets for imports, exports, issuance of letters of guarantee, bills etc. The achievement of targets should be reviewed every monthly by the respective circles at the Head Office and necessary instruction and guidelines provided to the respective area control and zones where the business performances are not accordingly the set targets.
4. TRAINING OF PERSONNEL:
We all know that the profitability, growth and survival of a bank depend upon the business development. Therefore, the Banks should take steps to impart training to the probationary officers, senior officers, managers and executives in modern business and public relation.
Business development training is the process of imparting knowledge creating skills and shaping attitude, work habits, and consists of testing, showing and teaching the trainee and then monitoring his/her results and making constructive correction.
MARKET RESEARCH & ANALSIS PLAN:
Before launching any venture or expansion plan, a detailed market research/analysis must be carried out using any and/or of the following methods:
Ø The best method is collecting first hand data from potential market through surveys. The questionnaires must be unbiased and should not prompt the desired result.
Ø Historical data, if available could be very useful in determining the potential and trends.
Ø In case, the lack of awareness about the service or non-existence of historical data makes it impossible to conduct a research, data of the location, which have similar or close characteristics, can be used.
PRODUCT DEVELOPMENT PLAN:
The method to achieve strategic objectives is to develop new products or services to meet he needs of a target market segment. New product development plan of the Bank should incorporate the following:
Ø A description of the key elements of the new product or service.
Ø The return on investment to be achieved at certain specified demand levels.
Ø Degree of exclusivity of schemes to be developed.
Ø Effects on existing schemes or services and whether alternatives are available by upgrading or improving existing products.
Ø Printing and packing techniques that may be incorporated in the new service or scheme in order to increase sales of existing service.
Ø Interest rates of the new scheme or new service.
PLAN FOR MONITORING & EVALUATION OF SYSTEMS:
The systems and procedures of the Bank must be dynamic, flexible and subject to continuous monitoring and evaluation. The pre-requisites of an effective monitoring and evaluation process are as follows:
Ø A good, open and unbiased feedback system should be established to identify the problems and suggesting improvements.
Ø The feedback system must include the customers and all the staff members from top to bottom within the Bank.
Ø The feedback system must allow both, as needed and fixed interval information.
Ø The problems and errors must be analyzed and removed. The suggestions should be discussed at all concerned levels and implemented if found useful.
PERFORMANCE EVALUATION PLAN:
Periodic performance evaluation is very important function to be performed. The objective of evaluation must not be limited for salary review only. It should include and be performed in the following manner:
Ø Objectives for each employee must be clearly defined in a measurable quantifiable manner.
Ø A methodical system must be adopted, whereby the employees also participate in the evaluation process.
Ø The system must be such that where the performance against the given objectives can be measured numerically,
Ø The performance review must be done at short intervals say quarterly. The periodical performance reporting and meetings could be effective tools.
Ø The performance review must be aimed at improving employees, skills and productivity by identifying training needs.
Ø The system must be adopted where personal liking and disliking could not pave through.
HIRING PROCESS & JOB DESCRIPTION PLAN:
The human resource people believe that the failure of sub-ordinate is in fact failure of manager as either he/she has not made the right selection or he/she has not able to manage the will. The problem could be in the hiring process or unclear job description. To enable employees most productive at all levels the Bank should improve its hiring process and job description.
This can only be attained through the following.
Ø Requirement analysis of the position.
Ø Preparing qualification and experience specification in accordance with the objectives to be from achieved the position.
Ø Implementing standardized selection criterion.
Ø Offering reasonable compensation package in accordance with job of the existing, experience, and qualification keeping in view the salary packages of the existing stuff at the level.
Ø Preparing detailed job description.
Ø Arranging detailed orientation programmers.
Ø Setting objectives for the period.
INTERSHIP PROGRAMME PLAN:
Although the above selected method would help the selection of right employees a lot, yet there are chances that candidates having stupefaction knowledge can get through and be selected. Thus a lot of organization resources in term of time and money have to be spent on them for their proper training.
One of the best and cost effective methods to select the right kind of people is to hire graduates from business and management’s schools as internees. The internship programme should spread over a period of at least six months. During the internship period, a close watch should be kept on the internees. At the end of the internship period, the performance of the internees should be evaluated and competent, diligent and energetic internees should be hired on permanent basis.
CUSTOMER RETENTION PLAN:
Retaining a customer is more difficult than acquiring a customer. Any disruption in continuity and quality of the service may result in a quick chum in the presence competitive environment.
The bank should set up the following for customer retaining:
Ø Effective and efficient complaint management system.
Ø Customer feedback system through independent source.
Ø Effective and efficient management information system.
Ø Proactive curtsy calls.
BIBLIOGRAPHY
1. Asrar H. Siddiqi, practice and law of banking in Pakistan, Karchi: Royal Book Company, 1998.
2. Bowlin, Oswald D. (1990). Financial Analysis. USA: McGraw Hills International.
3. Block, Stanely B and Hirt, Geottrey A. (7th edition) Foundation of Financial Management. Sydney: Ed. Von Hoffmenn Press.
4. Horngren, Sundem. (1999). Introduction to Financial Accounting. New Jersey: Pentice Hall Press.
5. Kock, Timothy W. (1998). Bank Management. Orlando: Dryden Press.
6. Morton, S. John and Ronald (1983). Consumer Action. USA: Houghton Mifflin Company, Boston.
7. Brigham F. Eugene and Joel F. (2001). Fundamentals of Financial Management. Indian Edition: Harcourt Asia PTE. Ltd, Dehli.
8. Meenai, S.A. (2001). Money and Banking in Pakistan. Karchi: Oxford University Press.
9. Muslim Commercial Bank, (2005). Annual Report, Karachi.
10. Muslim Commercial Bank, (2006). Annual Report, Karachi.
11. Muslim Commercial Bank, Brochures of products & Services.
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