Design-Build vs. Design-Bid-Build in Banking: A Comparison
In this banking transformation comparison, you’ll discover the basics of two popular construction methods plus their advantages and disadvantages. ...
You've mastered the steps to building your transformation budget. No doubt — it’s complicated. Now, you need to tackle two critical pieces of the process:
With scenario planning, you consider potential events that could occur outside your control and create contingency plans. It’s a strategy that helps remove some of the uncertainty from your budget while providing the flexibility to take advantage of unforeseen opportunities.
Scenario planning arms you with the knowledge to determine what decisions to make, no matter what might occur. Your KPIs are established and on a regular basis, and you refresh scenarios and update assumptions based on what is happening.
Basically, you’re prepared for the unexpected and are armed with a competitive edge because you can react quickly and decisively.
How to incorporate scenario planning into budget planning:
From McKinsey, here are the dos and don’ts of scenario planning:
Why does scenario planning matter in our budget planning for a branch or HQ transformation? As the most obvious example: the pandemic.
FIs that had performed scenario planning were prepared technology-wise. Employees could continue serving members while working from home using digital platforms.
Longer-term scenario planning included contingencies for what to do with unused space if fewer employees are permanently in the office, for example, leasing it out or offering it as community event space.
With your team, you've already created the right strategy for your transformation by outlining why you need to take action, what you will do, where to apply it, and by when in an Executive Summary. Then, based on that agreed-upon plan, you created an accurate budget based on like projects, industry averages, and your research (bonus points if it's before your deadline!).
But there's one more (big) step you need to take before you can start executing your (well-planned) Branch Transformation strategy: packaging your budget in the right way to get Board approval!
Here's what often happens:
You've done your Branch Transformation homework. You know the data and research, have a logical plan of attack to address the board's requests, and feel confident in the substance and value of your presentation.
Around three minutes into your presentation, you start getting peppered with questions like,
"Have you considered this as well? What is the cost? Which other options have you evaluated? What impact does this have to the overall experience?"
But you can avoid this budget presentation hijack with a different approach. It’s all about how you format your approval request.
Here's a different approach: begin your presentation by packaging your budget in the format of:
"We've packaged this in the context of the questions we believe you'd want answers to."
Then, state those questions. You will quickly see if there are others.
Here's how this format can help you win:
Once you get board approval, there's only one thing left to do: execute your transformation strategy!
Want some help packaging this to your board? Our team has helped create these presentations and even gone on site for board presentations many times. Pull from our expertise in navigating these conversations and our knowledge base to answer some unforeseen questions around your project.
We're only a few days away from September, but we have a way to shorten the entire process and drive your initiatives more quickly – and it all starts at a place we call the Ideation Center.
You're invited to join DBSI in Chandler, AZ to spend the day with us where more than 500 financial institutions have started their transformation efforts.
By visiting the Ideation Center, you will:
Even better, there's no fee to come – all you need to do is get here!
Click the button to learn more about the unrivaled, interactive experience you can expect from a day at the Ideation Center (plus some of our unexpected elements, like our Batpole and golf simulator!)
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