Creating products: new and improved! You won't have much worth marketing until you perfect a workable goods-and-services development process. Here's an 11-step model.

• Author: Karas, Michelle M.
• Position: Fundamentals: product development

Products--both goods and services--are at the heart of the banking business. Success means having the right products, at the right price, at the right time, with file light promotion. In other words, all other marketing elements (price, promotion, place) are contingent upon product.

You not only have to meet these product requirements, but also, as file market evolves, to develop and offer new products at a steady pace.

How your bank handles product development is dependent on file size of the institution and the scope of the project. However. no matter how large or small your organization, a good development plan can mean the difference between product success and failure.

At Citizens & Northern Bank (C&N), Wellsboro, Pa., ($1.1 billion in assets, 19 locations)we follow an 11 step product development process. I present this process below as a series of discrete steps. In the real world, however; the lines between the steps are often blurred. In some cases, an organization might handle several steps at once, or some steps may be skipped due to the small scope of the project. No matter how you decide to handle the development process, sit back after the completion of each step and rake a good look at where you tire. This is the time lot the "go" or "no-go" decision: whether to move ahead with a promising idea or "pull" the one that appears second-rate.

Remember, costs escalate a! each stage.

Here are the 11 steps:

1. Analyze the situation

   With any process or plan, you need to evaluate your product position in relation to your environment, to identify not only your strengths and weaknesses, but also your opportunities and threats.

   This step is where you must determine who will be involved in file process--where you create a product development team. One person or department cannot develop a product in a vacuum; the process must be participatory, to lye successful. Elicit representation from various areas of the organization. In my experience, everyone will think they need to lye on the committee. Try to limit the team to no more than seven people. If you have too few or too many, it will hinder the process. At C&N we created subcommittees to turn to for additional help--i.e., education, compliance.

2. Explore and research product needs

   Brainstorm ideas for new products with your team. Write down all ideas. Remember, no idea is a bad idea. Have an open mind; you will be surprised with the results.

   Solicit ideas from other employees and from your...