strategy and strategic planning for the the government organisations 23 rd march, 2015
TRANSCRIPT
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.
3Strategic Planning - initial thoughts.ppt
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”
4Strategic Planning - initial thoughts.ppt
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
5Strategic Planning - initial thoughts.ppt
“If you don’t have a strategy you will be…….. part of someone else strategy”------------Alvin Toffler
6Strategic Planning - initial thoughts.ppt
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
7Strategic 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
8Strategic 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
9Strategic 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
1st March 15th March 15th May 27 th Aug 29th Oct 15th Dec (Ratification of W.P.) (Finalisation of Strategy) (Approval)
10Strategic 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
11Strategic 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"
12Strategic 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
13Strategic 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?"
14Strategic 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
15Strategic 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
16Strategic 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?
17Strategic 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
18Strategic 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
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
19Strategic 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
20Strategic 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?
21Strategic 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?
...
22Strategic 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
23Strategic 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
24Strategic 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
25Strategic 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
26Strategic 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
27Strategic Planning - initial thoughts.ppt
Things to do-
• Developing Workplan for the three stages:
∞ Assess the situation
∞ Develop the strategy
∞ Plan Implementation
• Define teams and responsibilities
28Strategic Planning - initial thoughts.ppt
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.