Strategy Survival Guide

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Structuring the thinking - Systems thinhking In Practice: SU Deprived Areas Project The Deprived Areas team wanted to examine the dynamics of deprived areas, mapping out the factors that, when combined, can 'lock' an area into deprivation. The existence of a 'vicious circle' in deprived areas had been indicated by academic studies and regeneration practitioners and the team wished to amalgamate the studies and combine them with further research to understand all of the factors contributing to this vicious circle. The team used evidence from visits to deprived areas, interviews with regeneration practitioners and academic studies to start building up a picture of the links in the cycle. It soon became clear that a multiplicity of factors were contributing to the 'cycle of decline', including factors relating to the operation of the housing market, incentives to work, and social capital. A very complex influence diagram containing around 40 linked factors was developed. Less rent income Higher incidence of poverty More disrepair “Benefit or neglect farming” by private landlords Low use of health services Unpopular neighbourhood. Empty/cheaper properties Debt problems More crime and fear of crime Growing exodus of more educated/ entrepreneurial residents Strained health services Strained schools Poor housing design (esp high rise) and condition Less social control, more disturbance, anti-social behaviour, vandalism Less stable, less committed to area, fewer community links. Lack of bonding social capital Poor mental and physical health High drug use/dealers Lack of youth activities Truancy Large proportion of young people Low level of basic skills, work skills and education Teen pregnancy High worklessness among residents Lack of outreach /community development services Families with little choice move in. Concentrations of vulnerable residents: • sick/disabled • low-skilled • people with criminal records • ethnic minorities • asylum seekers • substance abusers • Lone parents Little motivation to (formally) work among residents Negative peer culture. Low bridging social capital. Low aspirations Low pay jobs Few accessible jobs matching skills Social housing allocation system Low private & public sector investment Historic industrial/ economic legacy Low rate of enterprise Employer discrimination Low proportion of jobs via Jobcentre Plus/ Poor JC+ performance Lack of information about available jobs in area Lack of affordable / convenient childcare Poor transport access or high cost Disincentives from benefits system - low gains to work Disincentives from benefits system - slow processing Informal economic activity in area Reliance on incapacity benefits, perhaps passed through generations Doubled headed arrows blue for clarity The cycle of decline proved a useful tool in the following ways: • It illustrated the importance of linking physical regeneration (housing, environment) with economic, 'work-focused' factors and social factors, with implications for government policy towards deprived areas. • It showed where the performance of public services can perpetuate the problems in deprived areas, and therefore where government can take action immediately. • It showed how some factors, e.g. poor health. appeared to be mainly an outcome of deprivation, rather than a driver, with implications for priorities for public expenditure in deprived areas. • It allowed the team to identify where interventions might be effective in 'breaking' the cycle and helping areas to regenerate. Further development of the cycle included analysis of where different drivers might apply to different types of deprived area, and work to show how successful interventions in the main drivers might create a 'cycle of success'. Strategy Survival Guide – Strategy Skills Page 100
Strategy Survival Guide Version 2.1 Prime Minister’s Strategy Unit home | strategy development | strategy skills | site index Strategy Skills > Structuring the Thinking SWOT > in practice A SWOT analysis can be a useful way of summarising the relationship between environmental influences and core competencies and hence framing the agenda for developing new strategies. It can be simply understood as the examination of an organisation’s or a strategy’s internal Strengths and Weaknesses, and its external Opportunities and Threats. How to use SWOT Identify the external factors acting upon the organisation or policy area using tools and methods such as PESTLE and market analysis (including five forces). Undertake the same process in terms of internal resources and competencies, using tools such as organisational analysis. Use the SWOT framework, as shown below, to summaries the findings of these exercises. Internal External Strengths 1 2 3 4 5 6 Opportunities 1 2 3 4 5 6 Weaknesses 1 2 3 4 5 6 Threats 1 2 3 4 5 6 List specific items related to the issue at hand under the appropriate heading in the table. It is best to limit the list to 10 or fewer points per heading and to avoid over-generalisations. Use evidence to answer the following, or similar, questions: Strengths • What are the/our advantages? • What does the strategy/policy/service/sector do well? • What do other people see as its/our strengths? Weaknesses • What could be improved? • What does the strategy/policy/service/sector do badly? • What do other people see as its weaknesses? • What should be avoided? • Are there other similar services, strategies, policies etc that are doing better? Strategy Survival Guide – Strategy Skills Page 101
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Building an Evidence Base 113 Data
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A Framework for Strategic Direction
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Scenario development In Practice 1:
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Scenarios used in the Strategy Unit
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Multi-criteria analysis In Practice
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