2001: A Survival Guide.

• Author: Graham, John R.
• Position: Banks

Need to keep your bank competitive in the year ahead? Here's a roundup of timely strategic, marketing and branding ideas that could come in handy.

The last several years have been good for the financial services industry. The economy has been outstanding and most banks have done well. Sure, there's lots of competition and customers are more demanding than ever. And, no question about it, banks had to work harder. Still, the overall picture was a good one.

How will financial services fare in the year ahead? Will a change in the calendar make a difference? Or will it be just more of the same? Will the good times continue to roll?

Few experts expect any disruptive economic changes in 2001. Even so, there are disquieting factors in the economy: the housing market has slowed in certain regions, consumer electronics sales have slipped, some once flush city treasuries are feeling a pinch, more than a few high-technology and consumer products stocks are underperforming, and several large retailers are consolidating and closing marginal stores. Is all this merely transitional or is it a trend?

Even with all the indicators, the future is an enigma, of course. Whether the economy remains strong or shows signs of weakening, there are steps to take that can help ensure a successful year ahead for all kinds of businesses--including banks. Here are 10 practical guidelines:

1. Watch out for unnecessary mistakes. There's a contradiction in the current healthy economy. While there is more business, margins are also getting thinner. That's why IBM took its PCs out of retail venues and is selling them online.

   When business is good there is always the urge to "take it to the next level." While the need for improvement should never stop; there is always a tendency in business to look around for the next mountain to climb. We are always looking for the next challenge. What's happening now can be boring. The "new" and "different" turn out to be excuses to rekindle excitement.

   How many "bricks" businesses have ventured off into far more attractive "clicks" country only to discover they had made a mistake. Such mistakes can dose the doors. To its credit, Wal-Mart pulled back from launching a major e-commerce operation until it had reconsidered its strategy.

2. Take a close look at your institution. Are we sharp? Or, do we just think we are? When we sit around the conference table and talk about ourselves, we come away convinced that we are the best. It happens every day...