strategy and strategic planning for government ministries and departments february 3, 2010 arun...
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Strategy and Strategic Planning for Government Ministries and Departments
February 3, 2010
Arun MairaMemberPlanning Commission
2Strategic Planning - initial thoughts.ppt
Context: Performance management in Government
The Government of India is putting in place a Performance Management framework under the guidance of the Cabinet Secretariat,
As part of this framework, all departments have developed a Results Framework Document (RFD). The RFD includes:
• An overall vision for the department• Translation of the vision into a set of measurable goals
What is now required is for each department to develop a strategy and a strategic plan to achieve these goals (or perhaps rethink the goals)
• An implementable strategy to achieve the goals, linked to specific measurable milestones• To be in place by end of December 2010
This workshop is designed to provide a common framework and principles for developing this strategy in each department
• Guidelines and thought starters, rather than rules• Minimum critical steps, rather than full exposition on strategy
3Strategic Planning - initial thoughts.ppt
Strategic planning is always done in dynamic settings “Re-design the aircraft while flying"
Change trajectory
External
opportunities
and challenges
Internal hurdles
Small window of opportunity
Redesign the aircraft
4Strategic Planning - initial thoughts.ppt
Strategy defined
Strategy is an integrated set of choices to reach an objective
5Strategic Planning - initial thoughts.ppt
Strategy defined
Strategy is an integrated set of choices to reach an objective.
The choices, and thus the
activities, are internally
consistent.
The organization chooses to do some things—and not others—based on a data-driven process
that reveals and compares alternative paths.
Resources are deployed toward chosen activities
and away from others.
The objective is to create sustainable
impact for the public
6Strategic Planning - initial thoughts.ppt
Re-design the aircraft while flying
External
opportunities
and challenges
Internal hurdles
Action
- Plans
- Resources
Involvement
- Implementation
- Enablers/Disablers
Learning
- Broadening horizons
- Building capabilitie
s
7Strategic Planning - initial thoughts.ppt
Deeper Learning, Deeper Engagement
Issue/concern
Superficial action Results
What needs to be understood
about this issue?
Location of high leverage action agenda
Who needs to be included to understand it?
Who should be included in the action team?
Creative tension
9Strategic Planning - initial thoughts.ppt
"The gods put dreams in the hearts of men – dreams, desires, aspirations that are often much bigger than they are. The greatness of a man corresponds to that painful discrepancy between the goal he sets for himself and the strength nature granted him when he came into the world."
Alexander the Great to his
Secretary-General Eumenes
[From: 'Alexander: The Ends of the Earth' by Valerio Massimo Manfredi]
Creative tension
10Strategic Planning - initial thoughts.ppt
Strategy making: head in clouds, feet on ground
Current reality
Aspirations
Painful discrepancyRational - fact based assessment
Creative (emotional) energy – passion
Creative tension in strategy making
"Fulfilling the purpose of our existence"
11Strategic Planning - initial thoughts.ppt
Overall, four key components of strategy
2. Assess the situation
- External forces
- Internal strengths
- Stakeholders
- Knowledge and skills
External
opportunities
and challenges
Internal hurdles
3. Develop the strategy
- Initiatives
- Internal actions
- Stakeholders
- Learnings
- Priorities
1. Define the aspirationWhere we aspire to be?
What is our purpose?
4. Plan implementation- Implementation plans- Resources- Measures of success
12Strategic Planning - initial thoughts.ppt
What is the detailed implementation plan?
4A
What resources will be required?
4B
How will we track and measure success?
4C
4. Plan implementation
What are potential strategies?
3A
How will we engage the stakeholders?
3B
How will we build our knowledge and capabilities?
3C
What are the priorities?
3D
3. Develop the strategy
Overall, four key components of strategy
What is our Purpose?
Where we aspire to be?
GAP & Creative Tension
1A
1B
1. Define the aspiration
What external factors will impact us?
2A
Who are our stakeholders?
2B
What are our strengths and weaknesses?
2C
What do we need to learn?
2D
2. Assess the situation
13Strategic Planning - initial thoughts.ppt
What are potential strategies?
3A
How will we engage the stakeholders?
3B
How will we build our knowledge and capabilities?
3C
What are the priorities?
3D
3. Develop the strategy
What is the detailed implementation plan?
4A
What resources will be required?
4B
How will we track and measure success?
4C
4. Plan implementation
2. Assess the situation
What is our Purpose?
Where we aspire to be?
GAP & Creative Tension
1A
1B
1. Define the aspiration
What external factors will impact us?
2A
Who are our stakeholders?
2B
What are our strengths and weaknesses?
2C
What do we need to learn?
2D
2. Assess the situation
14Strategic Planning - initial thoughts.ppt
Overall mindset when assessing the situation
Use data to challenge commonly held perceptions• Often we have strong views on topics based on experience• However it is important to be brutally open in this phase and use data to challenge our views
Broaden perspectives when looking at the external situation• Take the time to include other people with different perspectives, other sources of knowledge
Start with exploration but narrow down to specific elements• Include broad indicators and factors• However prioritise and narrow down to critical ones• Fully explore the implications of the key factors deeply
Don't settle for answers – debate actively
2. Assess the situation
15Strategic Planning - initial thoughts.ppt
2A. What external factors will impact us?Which factors will help and which will hinder us in achieving our objectives?
2. Assess the situation
What external opportunities?
What external threats?
What external "tail winds?"
What external "headwinds?"
16Strategic Planning - initial thoughts.ppt
2A. What external factors will impact us?Think broadly
Political
Economic
Socio-cultural
Technological
Political landscape, other government policy and initiatives, international politics and relations
Business cycles, GDP trends, interest rates, inflation, unemployment, etc
Population demographics, income distributions, social mobility, lifestyle changes, level of education
Trends in information technology, role of technology in productivity improvement, technology for renewable energy, etc.
EnvironmentEnvironmental legislation, energy consumption, waste disposal, carbon reduction, etc.
2. Assess the situation
LegalLocal, national and international law, employment law, antitrust law
17Strategic Planning - initial thoughts.ppt
2B. Who are our stakeholders?Assessing the power and stakes of stakeholders
Group / IndividualsHow can they help
us?How can they
block us?What would they
want from us?What do we want
from them?
Power Stakes
Stakeholder analysis
2. Assess the situation
18Strategic Planning - initial thoughts.ppt
2C. What are our strengths and weaknesses?Some questions to consider
Internal strengths
What made us ?
What drove our success in the past?
What internal skills and knowledge do we posses?
What do other stakeholders see as our strengths?
Internal weaknesses
What is hindering our aspirations?
What were causes of failures in the past?
What additional knowledge and skills we need to learn?
What do others see as our weaknesses?
2. Assess the situation
19Strategic Planning - initial thoughts.ppt
2C. What are our strengths and weaknesses?Various elements to consider when assessing strengths and weaknesses
Capabilities
Internal communication
Resource adequacy
Transparency
Internal alignment
Open-mindedness
Systems and processes
Accountability
Databases
Speed of decision making
Understanding of stakeholders
Track record of delivery
Controls
Knowledge
...
2. Assess the situation
20Strategic Planning - initial thoughts.ppt
2D. What do we need to learn?Creating a learning agenda
Very little
Most important
Less important
WHAT DO WENEED TO KNOW
A lot
HOW WELL DO WE KNOW IT NOW
Necessary Critical learning agenda
Learning Agenda
2. Assess the situation
21Strategic Planning - initial thoughts.ppt
What are potential strategies?
3A
How will we engage the stakeholders?
3B
How will we build our knowledge and capabilities?
3C
What are the priorities?
3D
3. Develop the strategy
What is the detailed implementation plan?
4A
What resources will be required?
4B
How will we track and measure success?
4C
4. Plan implementation
3. Develop the strategy
What is our Purpose?
Where we aspire to be?
GAP & Creative Tension
1A
1B
1. Define the aspiration
What external factors will impact us?
2A
Who are our stakeholders?
2B
What are our strengths and weaknesses?
2C
What do we need to learn?
2D
2. Assess the situation
22Strategic Planning - initial thoughts.ppt
Overall mindset when developing the strategy
Be explorative and creative
– don't kill ideas too quickly
Broaden the range of options and actions
– look for parallels and ideas from other domains
Specifically and deeply consider implications from the assessment phase
3. Develop the strategy
23Strategic Planning - initial thoughts.ppt
3A. Identify initiatives based on analysis of external forces and internal capabilities
Opportunities
Threats / Hinderance
Strengths Weaknesses
Pursue policy / initiatives that fit our strengths
Overcome weaknesses with new knowledge and capabilities
Identify actions that can leverage our strengths to reduce vulnerabilities to external threats
Establish a defensive plan to prevent our internal weaknesses from making it susceptible to external threats
External forces
Internal assessment
3. Develop the strategy
24Strategic Planning - initial thoughts.ppt
3B. How will we engage our stakeholders
3. Develop the strategy
Stakeholder (from 2B)
Questions wemust ask
Mode of interaction WhenWho will be
responsible for doing it?
25Strategic Planning - initial thoughts.ppt
3C. Make our learning plan
3. Develop the strategy
What do we need to learn? (from 2D)
...
From where or from whom can we
learn?
...
How will we organize this?
...
Who is responsible?
...
26Strategic Planning - initial thoughts.ppt
3D. Key considerations for determining priorities
SuitabilitySuitability
1. Is there a clear rationale for government action?
2. How effectively can the action address the issues
3. Is the action justified based on cost vs benefits
FeasibilityFeasibility
4. Do we have or can we acquire capabilities for the action?
5. Do we have sufficient funds (affordable) to implement initiatives
6. Can risks be identified and either mitigated or managed
7. What degree of coordination required to implement action?
8. Are there clear control mechanism to measure success and learning from feedback
AcceptabilityAcceptability
9. Is the action supported by those with authority and influence to legitimise action?
10.Has there been sufficient involvement of stakeholders?
3. Develop the strategy
27Strategic Planning - initial thoughts.ppt
3D. Prioritize with assessment on three dimensions
Initiatives
Suitability (effectiveness &
impact)
Feasibility(ease of
implementation)Acceptability
(by stakeholders) Overall priority
Initiative 1
Initiative 2
.........
Initiative n
3. Develop the strategy
28Strategic Planning - initial thoughts.ppt
What are potential strategies?
3A
How will we engage the stakeholders?
3B
How will we build our knowledge and capabilities?
3C
What are the priorities?
3D
3. Develop the strategy
What is the detailed implementation plan?
4A
What resources will be required?
4B
How will we track and measure success?
4C
4. Plan implementation
4. Plan for implementation
What is our Purpose?
Where we aspire to be?
GAP & Creative Tension
1A
1B
1. Define the aspiration
What external factors will impact us?
2A
Who are our stakeholders?
2B
What are our strengths and weaknesses?
2C
What do we need to learn?
2D
2. Assess the situation
29Strategic Planning - initial thoughts.ppt
From strategy to implementation plan
1. Strategic initiatives
6. Overall plan and
milestones
4. Resources required
5. Tracking and
measuring
1.2.3.4.5.
Inter-dependencies should be understood
Detailed activities
Points for coordination
Milestones and review points
People
Money
Infrastructure
Measurables and observables to assess progress
Methods of reviews
Methods for corrective actions
2. Stakeholder engagement
Who
When
How
3. Learning Agenda
What
When
How
4. Plan for implementation
30Strategic Planning - initial thoughts.ppt
Key success factors for successful implementation and making change
Compelling vision for
action
Securing stakeholder
support
Committed leadership
Rigorous project
management
Effective communication
Infrastructure/
Resources alignment
Building capabilities
4. Plan for implementation
31Strategic Planning - initial thoughts.ppt
Critical success factors for Strategy: the leaders’ orientation
Strategy-making is central to the success of our organization
--it is not ‘yet another’ task to be done when we have the time
The leaders’ role is to shape strategy
--it is not something to be ‘assigned’ to juniors to then ask them what they are doing about it
Consultants, whether from inside or outside government, can assist you and coach you if you want
--they cannot ‘do it’ for you
32Strategic Planning - initial thoughts.ppt
Proposed timeline for activities
19 February: Develop a plan in the department for undertaking this exercise• Develop overall workplan for all three steps, define teams and responsibilities
15 March: Ratification of all workplans
15 May: Complete "2. Assess the Situation"• By 19 June, workshops to review all assessments
27 August: Complete "3. Develop the Strategy"• By 17 September, workshops to review strategies
29 October: Complete “4. Plan for Implementation”• By 20 November, workshops to review plans
15 December: Final completion
IMPORTANT THAT EACH STAGE IS COMPLETED PROPERLY AND ON TIME
33Strategic Planning - initial thoughts.ppt
Break-out exercise 1: Assessing stakeholders
In your group, list out all the potential stakeholders that can influence/affect your pursuit of your goals
Starting with more critical stakeholders (based on the collective judgement of the group), discuss the key questions on the template for the stakeholder
Then move on to other stakeholders – consider different types of stakeholders in the exercise
Present back your analysis in the plenary for 5 key stakeholders
10 mins
30 mins(3-5 mins per
stakeholder)
Prepare for presentation
34Strategic Planning - initial thoughts.ppt
2B. Who are our stakeholders?Assessing the power and stakes of stakeholders
Group / IndividualsHow can they help
us?How can they
block us?What would they
want from us?What do we want
from them?
Power Stakes
Stakeholder analysis
35Strategic Planning - initial thoughts.ppt
Break-out exercise 2: Learning Agenda
As an individual, reflect on the following questions to outline a learning agenda
• What is the critical capability/knowledge we need to produce results? • What are some beliefs we have that make it difficult to get the results we
want?• What new knowledge and new ways of acting/thinking will help us to
produce better results?
Go around the group and hear everyone's learning agenda• Collate common points and themes• Listen, understand, don't challenge
Take some key points and map them on the template provided to develop your Learning Agenda
Record your analysis of the top 5 items of required knowledge/capabilities
5 mins
35 mins
Prepare for presentation
36Strategic Planning - initial thoughts.ppt
2D. What do we need to learn?Creating a learning agenda
Very little
Most important
Less important
WHAT DO WENEED TO KNOW
A lot
HOW WELL DO WE KNOW IT NOW
Necessary Critical learning agenda
Learning Agenda