Strategic planning for deregulation in a Canadian bank

Abstract The Toronto-Dominion Bank was a leader in profitability and stability for major North American banks during the 1980s. It had a strong average return on total assets for the banking industry of almost 1·00 per cent and held the highest ‘AAA’ credit rating. Its experience is an illustration of the importance of balancing historical values amidst rapid change. With rapid deregulation of the financial services industry, the TD Bank decided to change its previous focus as a niche player and to diversify into many of the new financial services now allowed, ranging from insurance to some trust services. The TD was gradually evolving from being a low-cost producer, to developing and offering differentiated or value-added services. Amidst major economic changes, such as free trade and an increasingly global economy, it decided to retain its regional focus in the province of Ontario. For a company with $65bn in assets, its long-range plan was short and simple. The TD Bank did not have or attempt to develop a state-of-the art strategic planning process, but it emphasized selected aspects of planning, including synthesizing ideas and developing a summary ‘game plan’ for the management team.