What is Strategic Management?

Strategy management can be defined as the process to integrate bank functions into groups of actions designed to fit the constraints and demands of the market. “This decision making process is conducted at the highest level of the organization” and aims to position the bank in a competitive advantage that allow generations of revenue, reduction of costs while increasing or consolidating market presence (Amazon, 2011)

The strategic management process starts with the identification of a vision, a mission, and the objectives, as these elements define the values of the bank and ultimately the very purpose of the business.

The Vision defines what the bank wants to be, its “an ideal that points the way” (Tafoya, 2010). As example, TD vision is “To be the better bank”, RBC is to “Always earning the right to be our clients’ first choice”, CIBC “To be the leader in client relationships”; these are intangible statements but so powerful that they define the purpose of each of these organizations.

The Mission articulates the Vision into an accessible and realist state that outlines the bank’s working culture, values and key measurements. As example; the TD mission is: “We will be the Best Run, Customer-Focused, Integrated Financial Institution, with a Unique and Inclusive Employee Culture”, CIBC’s is “Help our clients achieve what matters to them, Create an environment where all employees can excel”.

Finally, the objectives are SMART: specific, measurable, attainable, realistic and timely activities “that define what must be accomplished to achieve the mission”.

How Portfolio Management help to achieve Banks Strategy?

Portfolio management as defined by the Project Management Institute in the Standard for Portfolio Management, is “the coordinated management of one or more portfolio to achieve organizational strategies and objectives, It included interrelated organizational processes by which an organization evaluates, selects, prioritizes, and allocates its limited internal resources to best accomplish organizational strategies”.