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

2. 1 Strategic 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.

3. 2 Strategic 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”

4. 3 Strategic 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 6 th Pay Commission

5. 4 Strategic Planning - initial thoughts.ppt “If you don’t have a strategy you will be…….. part of someone else strategy”------------Alvin Toffler

6. 5 Strategic 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

7. 6 Strategic 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

8. 7 Strategic 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

9. 8 Strategic 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 1 st March 15 th March 15 th May 27 th Aug 29 th Oct 15 th Dec (Ratification of W.P.) (Finalisation of Strategy) (Approval)

10. 9 Strategic 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 aspiration Where we aspire to be? What is our purpose? 4. Plan implementation -Implementation plans -Resources -Measures of success

11. 10 Strategic Planning - initial thoughts.ppt Strategy making: head in clouds, feet on ground Current reality Aspirations Painful discrepancy Rational - fact based assessment Creative (emotional) energy – passion Creative tension in strategy making "Fulfilling the purpose of our existence"

12. 11 Strategic 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

13. 12 Strategic 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?"

14. 13 Strategic 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. Environment Environmental legislation, energy consumption, waste disposal, carbon reduction, etc. 2. Assess the situation Legal Local, national and international law, employment law, antitrust law

15. 14 Strategic Planning - initial thoughts.ppt 2B. Who are our stakeholders? Assessing the power and stakes of stakeholders Group / Individuals How can they help us? How can they block us? What would they want from us? What do we want from them? PowerStakes Stakeholder analysis 2. Assess the situation

16. 15 Strategic 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?

17. 16 Strategic Planning - initial thoughts.ppt 2D. What do we need to learn? Creating a learning agenda Very little Most important Less important WHAT DO WE NEED TO KNOW A lot HOW WELL DO WE KNOW IT NOW NecessaryCritical learning agenda Learning Agenda 2. Assess the situation

18. 17 Strategic 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

19. 18 Strategic Planning - initial thoughts.ppt 3A. Identify initiatives based on analysis of external forces and internal capabilities Opportunities Threats / Hinderance StrengthsWeaknesses 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

20. 19 Strategic Planning - initial thoughts.ppt 3B. How will we engage our stakeholders 3. Develop the strategy Stakeholder (from 2B) Questions we must ask Mode of interactionWhen Who will be responsible for doing it?

21. 20 Strategic 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?...

22. 21 Strategic Planning - initial thoughts.ppt 3D. Key considerations for determining priorities Suitability 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 Feasibility 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 Acceptability 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

23. 22 Strategic 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

24. 23 Strategic 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

25. 24 Strategic 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. Stakehold er engageme nt Who When How 3. Learning Agenda What When How 4. Plan for implementation

26. 25 Strategic 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

27. 26 Strategic 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

28. 27 Strategic Planning - initial thoughts.ppt Strategic Leadership and Strategic Process SLSP -Defined Successful Strategic Actions Effective Strategic Leadership Strategic Intent Strategic Mission shapes the formulation of and influences Hitt, Ireland, and Hoskisson 6th Ed. Strategic Management: Competitiveness and Globalization, SouthWestern.

29. 28 Strategic Planning - initial thoughts.ppt Thank You