Strategy and Strategic Planning for the the Government Organisations 23 rd March, 2015.

Strategy and Strategic Planning for the the Government Organisations

23rd March, 2015

2Strategic Planning - initial thoughts.ppt

Present System of Performance Management

• Traditionally governance structure in India characterized by rule based approaches.

• Focus on how things should be done and how inputs should be aligned.

• Does not help indicate what are the results achieved.

• Performance Management efforts till now have mostly been the budget exercise, annual reports, outcome budgets at organizational level and ACR and APAR at individual level.


Performance Management

• Goal- Create a Government that not only does the right thing but does them rightly- efficiently and effectively.

“What gets measured gets done”


Key Performance Management Initiatives

• Results Framework Document

• Performance Report

• Independent Evaluation Office for flagship Program

• Prime Minister’s Delivery Monitoring Unit

• Performance Incentive System under 6th Pay Commission


“If you don’t have a strategy you will be…….. part of someone else strategy”------------Alvin Toffler


Context: Performance Management in Government

As part of this framework, 73 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 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


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


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


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

1st March 15th March 15th May 27 th Aug 29th Oct 15th Dec (Ratification of W.P.) (Finalisation of Strategy) (Approval)


Overall, four key components of strategy


- External forces

- Internal strengths

- Stakeholders

- Knowledge and skills

External

opportunities

and challenges

Internal hurdles


- 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


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"



3A


3B


3C


3D



4A


4B


4C






1A

1B



2A


2B


2C


2D



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?


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




4A


4B


4C


3. Develop the Strategy




1A

1B



2A


2B


2C


2D



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



Things to do-

• Developing Workplan for the three stages:

∞ Assess the situation

∞ Develop the strategy

∞ Plan Implementation

• Define teams and responsibilities


Strategic Leadership and Strategic Process

SLSP -Defined

SuccessfulSuccessfulStrategic ActionsStrategic Actions

Effective StrategicEffective StrategicLeadershipLeadership

Strategic IntentStrategic Intent Strategic MissionStrategic Mission

shapes the formulation ofshapes the formulation of

andandinfluencesinfluences

Hitt, Ireland, and Hoskisson 6th Ed. Strategic Management: Competitiveness and Globalization, SouthWestern.


Thank You

Strategy and Strategic Planning for the the Government Organisations 23 rd March, 2015.

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Transcript of Strategy and Strategic Planning for the the Government Organisations 23 rd March, 2015.