PRESENTATION TO THE THIRD ANNUAL IADI CONFERENCE

1. PRESENTATION TO THE THIRD ANNUAL IADI CONFERENCE OCTOBER 26 – 27, 2004 Brunnen, Switzerland STRATEGIC PLANNING Winston Carr Chief Executive Officer Jamaica Deposit Insurance Corporation

2. CONTENTS • What is Strategic Planning? • JDIC’s Experience with Strategic Planning • Components of JDIC’s Strategic Management Process • Major Lessons Learned

3. What is Strategic Planning? • Process of developing a framework to determine the direction and identify the focus of an organization. • Organizational efforts at all levels must point in that direction – Team work • An integral part of the Strategic Management Process is to ensure that business operations are planned, authorized, properly implemented and monitored.

4. What is Strategic Planning Continued • An ongoing activity – not an annual event • Purpose is to produce results on a consistent basis through total organizational commitment. • Use the opportunity to also review the Vision, Mission and Core Values of the organization.

5. JDIC’s Experience with Strategic Planning • JDIC is a statutory corporation established in August 1998 to manage an explicit DIS with the least possible exposure of the Corporation to loss • Prior to 2003, JDIC operated on the basis of three consecutive Strategic Plans on its own initiative to guide the Corporation in its early years.

6. JDIC’s Experience with Strategic Planning Continued • Since 2003 under the Public Bodies Management and Accountability Act (PBMA), JDIC was required to submit its Corporate Plan to the Minister of Finance and Planning annually. The PBMA also requires that JDIC makes half-yearly and quarterly reports. • Technical support (generic and specific to deposit insurance) received from Keith Adam in April 2004 for the preparation of JDIC’s 3 year Strategic Plan for FY2005/2006 – 2007/2008. • Decision taken to adopt CDIC’s Strategic Planning Model but with modifications to take account of local peculiarities.

7. Components of JDIC Strategic Management Process • Clear understanding of the Corporation’s Business Objectives informed by its statutory mandate or objects. • Determine the longer term Business Strategies to achieve these objectives. • But before developing these strategies perform an environmental scan/SWOT analysis taking into account internal and external issues.

8. Components of JDIC Strategic Management Process Continued • Decide what are the critical assumptions for the planning period. • Develop the Business Plans and Support Initiatives and targets at the Corporate, Divisional, Departmental and Individual levels in order to implement the Business Strategies • Have a mechanism to measure performance: Corporate Scorecard.

9. Major Lessons Learned • Planning process must be viable and clear so managers and Board of Directors can understand and adopt them. • Organizational commitment to both the planning process and the plan required. • Planning is an ongoing people process and can be very time consuming. • Key performance indicators necessary to track performance against the plan.

10. Major Lessons Learned Continued • Always take into account the impact which the environment (internal and external) affecting the organization and its membership can have on identified risks. • The Plan should be flexible enough to accommodate adjustments due to significant changes in the operational environment during the planning period. • More work is required to integrate our Enterprise Risk Management (ERM) with the Strategic Management process. • Proper Planning Prevents Poor Performance