Strategy Survival Guide - Olev

1 Strategy Survival Guide July 2004 Strategy Survival Guide July 2004 Strategy Survival Guide Page 1 The Strategy Survival Guide aims to support Strategy development and promote strategic thinking in government. It encourages a project-based approach to developing Strategy and describes four typical project phases. It also discusses a range of skills and useful tools and approaches that will help to foster strategic thinking across government. It is offered as a resource and reference Guide , and not intended as a prescription or off-the-shelf solution to successful Strategy work. The Strategic Capability Team at the Prime Minister s Strategy Unit exists to support government departments in understanding and applying the content of the Guide . Home > Introducing Strategy - an introduction to Strategy and strategic thinking > How to Use the Guide -tips to help you find what you need > Register - we ll inform you when the Guide is updated Strategy Development > About Us - background to the Strategy Unit Strategy Skills Typical tasks and outputs of each phase of a Strategy project Useful tools and approaches for thinking strategically The Strategy Survival Guide is work in progress.

2 The Strategy Unit would welcome your comments and suggestions. Published: July 2004 Last updated: home | Strategy development | Strategy skills | site index Strategy Survival GuideVersion Minister s Strategy Unit > Site Index - a full index of the Guide Strategy Survival Guide Page 2 Home 1 Site Index 2 Introducing Strategy 5 How to use the Guide 10 About Us 11 Contact Us & Registration 12 Strategy Development 13 Justification & Set Up 14 Task: Justifying the project 15 Task: Clarifying the issues 16 Task: Planning the project 17 Task: Setting up the team 18 Output: Project proposal & plan 19 Management issues 20 Questions to ask 21 Research & Analysis 22 Task: Gathering knowledge 23 Task: Analysing knowledge 24 Task: Reviewing delivery capability 25 Output: Interim analytical report 26 Management issues 27 Questions to ask 28 Strategic Direction Setting 29 Task: Developing guiding principles 30 Task: Articulating a vision 31 Task: Defining strategic aims and objectives 32 Output.

3 Preferred strategic direction 33 Management issues 34 Questions to ask 35 Site Index home | Strategy development | Strategy skills | site index Strategy Survival GuideVersion Minister s Strategy Unit Strategy Survival Guide Page 3 Policy & Delivery Design 36 Task: Developing policy options 37 Task: Detailing policy options 38 Task: Appraising policy options 39 Task: Planing the roll out 40 Output: Final report & delivery plan > template 41 Management issues 42 Questions to ask 43 Strategy Skills 44 Managing People and the Project 45 Recruiting a team > in practice 46 Building a team > in practice 49 Working as a team > in practice 51 Encouraging creativity > in practice 56 Giving & receiving feedback > in practice 61 Developing the plan > in practice 64 Structuring the work > in practice 66 Setting milestones > in practice 68 Managing risks > in practice 70 Defining accountability > in practice 72 Evaluating the project > in practice 74 Managing Stakeholders and Communications 76 Identifying key stakeholders and their issues > in practice 77 Effectively engaging with stakeholders > in

4 Practice > template 79 Developing a stakeholder engagement plan > template 82 Drawing up a communications plan > in practice 83 Communication with the media > in practice 85 Evaluating communications 86 Preparing presentations > in practice 87 Structuring the Thinking 90 Issue trees > in practice > template 91 First principles thinking > in practice 94 Systems thinking > in practice 96 SWOT > in practice 101 PESTLE > in practice 104 Creativity techniques > in practice 107 Strategy Survival Guide Page 4 Building an Evidence Base 113 Data types & sources > in practice 114 Surveys > in practice 118 Interviews & focus groups > in practice 126 Modelling > in practice 129 Market analysis > in practice 136 Organisational analysis > in practice > template 142 International comparisons > in practice 146 Benchmarking > in practice 151 Forecasting > in practice 154 Scenario development > in practice 158 Counterfactual analysis > in practice 165 Appraising Options 168 Multi-criteria analysis > in practice 169 Cost-benefit & cost-effectiveness analysis > in practice 174 Rationale for government intervention > in practice 178 Planning Delivery 181 Change management > in practice 182 Institutional change > in practice 186 Designing an implementation plan > in practice 188 Appendix External Links 191 Templates 196

5 Subject Index 201 Strategy Survival Guide Page 5 An Introduction to Strategy in Government Strategies help organisations think through what they want to achieve and how they will achieve it. Putting strategies into practice and acting strategically ensures that they are focused on the things that really matter not buffeted by events or short-term distractions and are able to allocate their resources accordingly. There is a huge literature on Strategy in business and in warfare; Strategy in government is similar, but tends to be more complex. It generally involves multiple goals rather than one single bottom line and it is implemented through a wide range of policy instruments, including laws, taxes and services. Far from being a neat linear process, it is shaped by unexpected events and political pressures.

6 It also often needs to be more visible and accountable than Strategy in other fields. As a rule, the best strategies in governments and public services are: clear about objectives, relative priorities and trade-offs underpinned by a rich understanding of causes, trends, opportunities, threats and possible futures based on a realistic understanding of the effectiveness of different policy instruments and the capacities of institutions (strategies that work well on paper but not in practice are of little use) creative - designing and discovering new possibilities designed with effective mechanisms for adaptability in the light of experience developed with, and communicated effectively to, all those with a stake in the Strategy or involved in its funding or implementation. Strategies vary greatly.

7 Some are very precisely defined and imposed top-down through organisational hierarchies. Others emerge in a more evolutionary and co-operative way from discussions, experiments and learning. In either case, taking a strategic approach should ensure that decisions on strategic direction, policy design and delivery are seen as an end-to-end process of change management, with constant testing, feedback, learning and improvement. In a democracy, the end purpose will be to create public value services and outcomes that are valued by the public. Policies need to be developed within the framework of a longer-term Strategy , taking into account the practicalities of implementation. All strategies need to be adaptable, with quick feedback and effective information flows to respond to new information, and take account of changing circumstances or unexpected events.

8 Introducing Strategy home | Strategy development | Strategy skills | site index Strategy Survival GuideVersion Minister s Strategy Unit Outcomes Strategic Direction PolicyDesign Delivery High level goals Trends and futures Context and constraints Adaptability Measurement and analysis testing, piloting and continuous learning public and user feedback consultation and engagement Outcomes Strategic DirectionPolicyDesignDelivery Adaptability Strategy Survival Guide Page 6 A Framework for Strategic Direction A Strategy needs to provide a clear sense of direction based on analysis of different strategic choices and their implications. Defining the strategic direction or desired way forward will often involve a vision, together with aims and short, medium and long term objectives that provide a coherent and consistent framework for co-ordinating government activity: a vision is a statement of aspirations describing a desired future aims are the outcomes needed to bring about that desired future objectives are those things that need to be achieved in order to realise these outcomes.

9 An example from a Strategy Unit project is set out below: In ten years time, ethnic groups living in Britain should no longer face disproportionate barriers to accessing andrealising opportunities for achievement in the labour marketBuilding EmployabilityConnecting People with WorkEqual Opportunities in theWorkplace Raising educational attainment Ensuring that key groups arebenefiting from educationalreforms Streamlining outreachinitiatives Tailoring labour marketprogrammes to client needs Extending programme flexibility Increasing housing mobility Increasing vocational skills Addressing access to childcareand transport needs Advising and supportingemployers awareness andaction Increasing efficacy of existingequal opportunity levers Increasing transparency andawarenessVisionAimsObjectivesStrategi c Framework - SU Ethnic Minorities and the Labour Market Project In

10 Addition to a framework setting out strategic direction, strategies need to provide evidence-based policy recommendations to act as a clear route map of how the objectives will be delivered. Examples of strategies developed across a broad range of government policy areas can be found on the Strategy Unit s website. The Relationship Between Strategy and Policy The terms Strategy and policy are used in many different ways, and sometimes interchangeably. For the purposes of this Guide , the following definitions are used: Strategy is the overall process of deciding where we want to get to and how we are going to get there. Strategic direction describes the desired future and sets out what needs to be achieved in order to bring it about. It provides the guiding principles that give context and coherence to action.