Implementation, Strategic Control, and Contingency Plans
An implementation plan refers to the detailed listing of schedules, expected difficulties activities and costs involved in the achievement of the objectives and goals of a strategic plan (Hill, 2014). The proposed implementation plan to achieve growth and effective customer services involves the installation of Automated Teller machines to replace the human tellers at drive-thru windows. Through this strategy, J.P Morgan Chase will be able to save costs associated with the employment of tellers in the branches of the bank and also make it more efficient for the customer to make withdrawals, payments and deposit money. The implementation should, however, be executed in the best way ensuring to keep the business operations smooth while satisfying the customers’ needs. The company should consider the objectives, action items, functional tactics, resource allocation, tasks and ownerships, milestones and deadlines for it to accomplish this. The organization also needs change management strategies, a risk management and contingency plan to enhance the proposed strategic plan.
Objectives and Function Tactics
The objective of the plan is to enable the company to be competitive in the banking industry. The company will take specific actions to incorporate ATMs at the banks. Every business must invest in technology for it to remain competitive. The ATMs will enable the organization to move into a new technological arena. J.P Morgan Chase will be able to be competitive in this industry. Technology in any organization is a cost and opportunity to conduct more business. The goal of the plan is to install new ATM’s across different locations of the JP Morgan Chase branches. The ATMs will involve a drive-thru service lane. Customers of the bank will be notified about the proposed changes and also how the drive-thru ATMs are different from the normal ATMs. The company will determine how the customer has received the new ATMs by placing a survey on customers at the places where they have placed them. The key functional areas that handle the successful completion of the project include the finance department, the marketing department, and the human resources department.
The main item in a strategic plan is analyzing how the company will achieve success. Action items refer to the specific statements that explain how the goals of the company can be accomplished (Wheelen, 2011). They include the areas that will move the strategy forward. The action times are normally performed by various teams within a specified time frame that is normally within one and two years.
The first action item will be the confirmation of the locations where the ATMs will be installed. By confirming the locations, the organization will be able to determine the right budget for the number of machines required. This action item will be completed before June 30th. The second action item is to obtain the necessary software programs and equipment for the ATMs to ensure that they function properly. The task will be completed before September 1st. The third action item will involve the collection of quantitative data to determine the different uses of technology in different regions. This action item will be through by December 31st. All the action items will be ready by January 1st so that the organization can fully implement the new ATMs drive-thru in the next year.
Milestones and Deadlines
Milestones and Deadlines are important to ensure that a project is completed successfully. It is important that the schedule accompany the project scope to ensure the success of the project. This is because the schedule will enable the different project sections to be well aligned through to completion. In case any changes are required in the schedule, the regional managers will handle the implementation and monitoring. This will require the use of the project scope. For the regional managers to determine if the project is taking place in the required state, they will be required to match the project scope with the milestones.
Milestones and Deadlines
|Milestone||Due Date||Who’s Responsible|
|Determine the location to install the special ATMs||8/30/15||The regional managers|
|Receipt of the required software||10/30/15||The regional managers|
|Collection and analysis of quantitative data||12/31/15||The regional managers|
|Implementation Activity||Implementation Partner Responsibility|
|Project Proposal and its Validity||Check the project requirements are according to company’s needs, time frame and various departments needed.|
|Project Planning & design|
|Develop a schedule that Regional managers can adhere||Weekly meet ups with the stakeholders to ensure the development meets the customer’s needs.|
|Time and Cost||Budget and development process closely monitored to avoids any shortfall|
|Risk Planning||Risks are properly assessed, and contingency planning are in place.|
|Monitoring & Control|
|Verify/validate||Management will keep track of the project is on track and budget.|
|Quality||Quality Assurance team will be monitoring the quality and final develop product is bug/error free.|
|Deadlines & Milestones||Developer team will strictly maintain the deadline and meets the milestones assigned.|
|Formal acceptance||Final user quality approval is required to meet to planning and requirement for final release of the developed product.|
Tasks and Ownership
Each region has a regional manager. The regional managers will handle the project’s development process. They will be assisted by the project managers, who will manage the success of the project. The finance committee will control the financing at the head office. The personnel will be controlled and managed by the human resources manager at the headquarters assisted by the regional HR officials.
J.P Morgan Chase needs new resources as it progresses into new technology. The resources are essential, as they will assist in the successful implementation of the project. In the process, the company will also have a lot of resources that it will no longer require for the company operations. In the last few years, the sector of information technology has grown rapidly allowing companies to have more capabilities to perform a lot of activities and operations they could not be able to do a few years ago (Davenport, 2013). This advancement has also enabled companies to be competitive. Organizations that fail to adopt new technology lose their competitive edge, and they lose their customers to other competitors in the industry.
During J.P Morgan’s transition to the increase of ATM usage in the financial and banking services industry, various resources need to be allocated while others will be discarded. The most significant resources are the human resources. The introduction of the ATMs will lead to many employees losing their jobs, as they will no longer be needed. Another important resource is the facilities with stand-alone drive-thru lanes. The facilities stand in commercial real estates, and they require a solution. Money is also a major resource that the company needs to take into account. The acquisition of the software and other facilities for the installation of the ATMs will require funding from the reserves and profits of the company. The HR department should also allocate sufficient labor, effort and time to the project.
Organizational Change Management Strategies
To advance to the use of the new ATMs from the stand-alone drive-thru, J.P Morgan Chase will be required to manage the aspects of change that will arise. The employees of the company and the customers may be reluctant to accept the concept. The organization should be able to manage this change effectively. The change agility of the organization should be quick and effective focusing on implementing change (Hayes, 2014). Their agility will ensure a successful strategy formulation.
Introducing the ATMs will require the company to let go many employees. This may attract negativity to the company. The organization should come up with ways or alternatives through which they will be able to retain their personnel. The installation and change of strategy by introducing the ATMs may affect some groups of communities such as the older and less technology accepting population. The organization should acquire additional manpower to assist this group of individuals. They should also communicate the benefits of the concept to ensure that the customers accept it. With the change management strategies, the organization should focus on the different management abilities and skills to accomplish the change and maintain the organization’s strategic alignment.
Financial Forecasting and Budgets
Budgets and financial forecasting are important factors during the implementation of any strategic plan. J.P Morgan Chase operates across the world and it the largest bank in the United States. The company will incur a lot of costs in the implementation of the strategy. The installation of the new ATMs will require labor costs and capital investment in the purchase of the equipment and software needed for the installation. The total budgeted cost estimated include
The total budgeted and estimated cost is $ 40,000. The company is however estimated to cover the costs during the first year of operations after the implementation of the ATMs. The ATMs will be more efficient, and the company will be able to attract and retain more customers.
The profits estimated for the first year of the implementation of the strategy is $100,000. The break-even analysis of the company involves the calculation of the revenues that are required to cover the cost at the point where the production below it will be unprofitable, and the production of it will be profitable. The company needs to earn $40,000 for it to achieve break even. The break-even chart of the company is as follows
costs Variable costs
The break-even analysis graph shows the revenues that J.P Morgan needs to earn for them just to cover the costs incurred for the implementation of the new strategy.
Risk Management Plan and Contingency Plan
By implementing the plan to install ATMs to replace the drive-up windows, leads to various risks that J.P Morgan Chase may face. The organization needs to identify the risks and address them to ensure the success of the plan. The company is facing the risk of losing customers who may be upset with the change in service delivery. People fear change, and this may drive them away. This is a great risk to the company. To mitigate this risk, the organization should educate their customers on the benefits of the new concept and answer any questions that they may ask regarding the concept.
The second risk is the risk of technical problems that my disrupt operations and hence frustrating customers. To mitigate this risk, the organization should put in place rapid maintenance solution for any technical problems that may arise. The company should also maintain some drive-thru windows from where the customers can be served in the case of the ATMs breakdown. J.P Morgan should educate their customers and guide them to avoid ATM frauds. This contingency plan will enable the organization to mitigate any risks that may arise (Hayes, 2014).
To improve customer service, J.P Morgan Chase has decided to install special ATMs that will allow the customer to avoid the long lines to make withdrawals, payment, to deposit money or to check their bank balances. This strategy may face resistance to change, and the company needs to have change management techniques for it to manage the change as discussed. The project will also involve various action items, functional tactics, resource allocation and milestones and deadlines for it to be successful. A contingency plan is also essential for the organization to be able to mitigate risks that may arise due to the implemented strategy.
Davenport, T. H. (2013). Process innovation: reengineering work through information technology. Harvard Business Press.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Wheelen, T. L., & Hunger, J. D. (2011). Concepts in Strategic management and business policy. Pearson Education India.
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