Strategy and Strategic Planning for Government Ministries and Departments February 3, 2010 Arun Maira Member Planning Commission

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


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


Strategy defined

Strategy is an integrated set of choices to reach an objective


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


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


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


The power of alignment

vs.


"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


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"


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


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


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




3A


3B


3C


3D



4A


4B


4C






1A

1B



2A


2B


2C


2D



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



2A. What external factors will impact us?Which factors will help and which will hinder us in achieving our objectives?


What external opportunities?

What external threats?

What external "tail winds?"

What external "headwinds?"


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.


LegalLocal, national and international law, employment law, antitrust law


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



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?



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

...



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




3A


3B


3C


3D



4A


4B


4C






1A

1B



2A


2B


2C


2D



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



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



3B. How will we engage our stakeholders


Stakeholder (from 2B)

Questions wemust ask

Mode of interaction WhenWho will be

responsible for doing it?


3C. Make our learning plan


What do we need to learn? (from 2D)

...

From where or from whom can we

learn?

...

How will we organize this?

...

Who is responsible?

...


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?



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




3A


3B


3C


3D



4A


4B


4C


4. Plan for implementation




1A

1B



2A


2B


2C


2D



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



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



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


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


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


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


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


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


Rules for dialogue and good conversation

1. First Think (before speaking)

2. Speak briefly

3. Listen deeply

4. Make time and space for all

5. Reflect

6. Share emerging insights and patterns

CHOOSE A FACILITATOR TO MANAGE THE DISCUSSION

Documents

Strategy and Strategic Planning for Government Ministries and Departments February 3, 2010 Arun Maira Member Planning Commission