If a bank aims to increase profits by 7% and reduce customer wait time by 20%, what type of planning is essential for achieving this?

The correct answer is tactical planning. Tactical planning is focused on the specific actions and short-term goals necessary to implement a broader strategy. In this scenario, the bank has clear objectives: increasing profits by 7% and reducing customer wait time by 20%. Tactical planning would involve determining the specific steps, resources, and methods needed to achieve these goals, such as staffing adjustments, process improvements, or technology upgrades that directly address customer service and operational efficiency.

This type of planning translates strategic objectives into actionable tasks and is typically focused on the medium term. While strategic planning outlines the overall vision and direction of the organization (like increasing profitability and enhancing customer experience), tactical planning is about how to accomplish those objectives efficiently and effectively.

Other types of planning, like operational planning, would deal with the day-to-day operations, and contingency planning would focus on preparing for unexpected events. However, in this case, tactical planning is the most appropriate choice for setting out the actionable steps needed to meet the specified targets.