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.

2 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.

3 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.

4 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: 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.

5 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

6 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 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

7 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 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.

8 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.

9 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.

10 Strategies vary greatly. 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.