Strategy Survival Guide

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These four components need to be considered objectively from first principles to identify the real issues, challenge implicit assumptions and question existing approaches. A development in any one of the components may provide the initial impetus for fresh strategic thinking and drive a need to develop thinking in the other components. In the same way, strategy development is often an iterative process with the components developing and evolving in response to each other. Strategic Solution Generation Implicit in adopting a strategic approach is a rational and reasoned process for developing solutions. In contrast to an ad-hoc approach that is likely to result in a more ‘random’ set of solutions, a strategic approach is underpinned by guiding principles and a set of appraisal criteria that frame the generation and appraisal of alternative options. Stage Initial problem Random ‘solution’ generation Strategic solution generation Research & analysis Range of possible solutions Choices and trade-offs Option appraisal Principles & Criteria Principles & Criteria Solution Scattergun policies Coherent solutions The appraisal criteria that should be used for this process are applicable to all decisions about government action, and address the suitability, feasibility and acceptability of each option: • Suitability – do the proposed actions address the key issues and will they be able to deliver desired outcomes? • Feasibility – can the proposed actions be delivered with the potential system capabilities and resources? • Acceptability – is there sufficient political and public support to legitimise the proposed actions? Maintaining a Strategic Perspective The need for strategic thinking extends far beyond the realms of a formal strategy development project. At all stages of policy design and delivery, a strategic perspective is needed to ensure that government action is focused on and capable of meeting the true needs of the public. The questions posed by the three criteria of suitability, feasibility, and acceptability form the basis of such a strategic perspective. Is it Suitable? Strategic Thinking Is it Feasible? Is it Acceptable? Strategy Survival Guide Page 8
In a dynamic world, public managers and policymakers need a strategic perspective to keep these three key questions in mind, and act to redress any gaps: Suitability Gap S F Feasibility Gap S F A A A suitability gap is created when public service actions and approaches are no longer a suitable response to public needs. This may occur for reasons including: • the original problem or need has changed or resolved • tensions arise with other strategic objectives or priorities • new evidence informs a change in overall desired outcomes • escalating or unacceptably high adverse impacts become apparent. When public policy is no longer adding value, a strategic perspective is needed to challenge the suitability of actions and reallocate resources to address prevalent needs. A feasibility gap is created by an inability to deliver desired outcomes. This situation may arise for many reasons, including: • underestimation or unavailability of the resources and capabilities needed to address the key issues • inconclusive evidence for how to address the key issues • insufficient incentives for innovation, transfer of best practice and continuous improvement in the system • diminishing returns requiring disproportional effort to extract benefit beyond the initial quick wins. In this instance, a strategic perspective is needed to align spending with strategic priorities, and develop a more capable delivery organisation or system. Alternatively, if the feasibility gap is too large, there may be a case for challenging the strategic objectives in favour of more realistic goals. Acceptability Gap S F A An acceptability gap is created by the absence of sufficient political or public support to legitimise action. This can occur for reasons including: • a lack of public engagement in strategy development, including a lack of understanding of the need for change • changes in the environment leading to shifting views about the strategy • innovative front-line organisations responding to public needs and evolving beyond their original remit. A strategic perspective encourages effective stakeholder engagement and a strong evidence base that demonstrates the problem and the suitability of the proposed action for addressing it. Strategies also need to be adaptable enough to encourage innovation and entrepreneurialism in meeting public needs. Building Strategic Capability Building strategic capability, both in terms of the ability to develop strategies and the ability to maintain a strategic perspective in day to day operations, requires a focus on creating: • demand for better strategy work from Ministers, CEOs, Directors, and senior officials • a culture of bottom-up challenge and ‘rocking the boat’ that encourages strategic thinking • organisational structures and processes which reinforce demand for a strategic approach • a strong evidence base that provides an accurate understanding of issues and how to respond them • skilled and confident people with diverse experience and access to best practice resources. . References The Strategy Unit discussion paper Creating Public Value describes the concept of public value, and how it can be used to think about the goals and performance of public policy. Strategy Survival Guide Page 9
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