This study was undertaken within the Branch Banking business unit of YY Bank, amajor player in the South African financial services industry.Following the need to drive superior overall performance within branch banking,while creating an aspiration element for top managers who are career orientated,selected branches were grouped into the Associate model. The Associate modelcan be described as the formalisation of an 'owner–manager' model that empowersthe Associate Manager through a defined mandate with broader or higher discretionrelating to aspects of its operations.During the recruitment and selection process, it became evident that whilecandidates maintained a sound operational perspective of the business, theirstrategic thinking ability was in some instances, somewhat and in others, seriouslylacking.The research objective of this study was to determine the relationship betweenstrategic thinking and overall peak performance among Associate Managers. TheStratified Systems Theory (SST), composed by Elliott Jacques (1989) formed thebasis and guiding principle of this study. The study constituted a dependant variable- the potential capability score (CPP) and four independent performancemeasurement variables.A literature study was pursued to establish the relevance of strategy and thecontribution of strategic thinking towards overall performance. The view ofThompson Jr, Strickland & Gamble (2010: 17) holds that a strategy–focusedbusiness is more likely to be a strong bottom–line performer than a company whosemanagement team does not take strategy–making responsibilities seriously. A furthernotion about strategic thinking is that it implies thinking 'outside the box' and itprecedes strategy formulation. Another citation by Allio (2006: 4), points out that theprime objective of strategic thinking is to place the organisation in a competitiveposition. The study sample constituted all incumbents who were successfully appointed asAssociate Managers. The results of a multivariate statistical analysis suggests norelationship between CPP and overall peak performance. Within the context ofbranch banking and Associate Managers, certain inherent factors point to thisoutcome - a key aspect being the largely operational nature of a bank branch.Despite the result and, taking into cognisance certain study limitations, we cannotconclude that strategic thinking does not contribute towards peak performance andrecommendations are made for further explorative study.A decade of shifts within the industry has promoted an increase of new entrants.These banks are now, with the aid of technological advancement, becomingsophisticated in their product and service offerings and are able to target andpenetrate complex markets. Clearly, competitiveness has heightened which,demands of Branch Banking and the Associate Manager, a new and refreshedperspective towards the business outlook.Associate Managers must now, to a greater degree, interact and adapt to ongoingchanges in an increasingly complex and challenging market. This requires anintegrated, holistic approach towards business planning and strategy execution. Nolonger can Associate Managers sustain profitable returns purely through anoperational orientation but must adopt a balanced approach in their strategic insight,operational and risk management, resource management as well as strategyexecution.For Branch Banking, it becomes increasingly necessary to develop and harnessstrategic thinking skills among individual managers which, in turn, will facilitatestrategic insight and bode well for strategic planning. Further, the business unitshould continue to apply the CPP assessment tool in the recruitment process -particularly for managerial appointments – in order to determine individuals' cognitivepotential and identify skills development opportunities among incumbents.In an effort to encourage strategy formulation among Associate Managers, theresponsibility for certain functional strategies (sales and service) should bedecentralised thereby encouraging strategy formulation at local and branch level. Associate Managers have been generally good at executing strategy but the future,in all its possibilities, demands a certain level of strategic insight in order to enable acompetitive positioning within the local market.
