development of strategy –methodology approach international conference: strategy planning process...

DEVELOPMENT OF STRATEGY METHODOLOGY APPROACH International Conference: Strategy Planning Process at Local LevelInternational Conference: Strategy Planning Process at Local Level Vinnytisa, September 6, 2013Vinnytisa, September 6, 2013

Methodology regulation EU regional/local development: Article 158-162 of TEU EU financial instruments: ERDF, ESF, CF Purpose: reduce regional disparities in EU 28 in broader context: bring living standards in the neighbor countries up to the EU average standards EU 2020 Strategy

Harmonization principle: Vertical and horizontal coordination EU Strategy and EUs priorities for support Country Development Strategy Regional strategy, sectorial strategies and programs City integrated development strategy and plans

Partnership principle Main phases of strategy planning process: 1. DEVELOPMENT Preparatory part Strategic platform Operational part 2. IMPLEMENTATION 3. MONITORING 4. EVALUATION Participative approach: collective process with involvement of authorities, social partners and organizations from civil society. PARTNERSHIP

Strategy Development: Preparatory phase StepsResults 1. Initiating the planning process Formal municipal decision to start the process of local development planning 2. Establishment of the working team(s) Local development team established (from different fields of activities) 3. Mapping interested stakeholders Competent and interested local actors identified 4. Creating an initial partnerships and launching of the process Local development partnerships (forum or focus groups) established

Strategy Development: Strategic platform StepsResults 1. Collecting data from different sources on relevant aspects of the situation (data should include gender and age structure wherever applicable); collecting qualitative data; data analysis Socioeconomic analysis (SEA) 2. Defining key internal and external factors SWOT and PEST 3. Strategic focus with key principlesStrategy matrix 4. Creation of development vision and strategic goals (priorities) Vision and strategic priorities established 5. Harmonization Alignment with strategic documents of higher level

Strategy Development: Socio-economic analysis Colleting data (sources: official statistics, city evidence data, communal companies, institution data) Data processing and analyzing (data: historical, geographical, demographic, labor market, social infrastructure, public and communal services, economic, environmental, fiscal ) Statistical annex Conclusions

Strategy Development: SWOT and PEST SWOT (Strengths-Weaknesses-Opportunities-Threats): tool to identify the most important internal and external circumstance of importance for city development PEST: tool to overview of Political, Economic, Social and Technological circumstances in global and national environment Synthesis of SEA findings

SWOT example Strengths Specialist expertise A new innovative product Quality procedure Location Weaknesses Lack of marketing expertise Poor quality of services Damage reputation Opportunities Internet sale Mergers, joint ventures or strategic alliances New markets Threats New competitor Price wars Taxation

PEST example PoliticalEconomicSocialTechnological OPPORTUNITIES Tax policy Employment laws Trade tariffs THREATS Political stability OPPORTUINITES Inflation rate Exchange rates THREATS Price war at market New competitor OPPROTUNITIES Corporative responsibility THREATS Career attitudes OPPORTUNITES Automation THREATS Competitor R&D activity

Strategy Development: Strategy Matrix What is it that is most promising, what is our particular competitive advantage (especially when it comes to local economy, education, culture and other fields...)? What is it that is most critical in our community - What is it that we simply must resolve in the next period? What are basic principles of our future development? Strategic focusing principles, sectors of intervention = long term coherence

Strategy Development: Vision Vision of future development of the city Statement: with external and internal dimension Time focus: more then 10 years Vision: Image of future to be strive

London: A World Financial and Business Centre The City will remain the worlds leading international financial and business centre and a driver of the national economy, continually innovating and developing new business areas, delivering growth and prosperity for its communities. The quantity and quality of new development, particularly offices, will keep pace with growing business needs, allowing the continued clustering of businesses that is vital to the Citys operation. The provision of utilities and infrastructure will keep pace with, and anticipate, the demands set by this growth, funded in part by new development. The City will remain a safe place to work, live and visit. Building design, servicing arrangements and management of the public realm will address wider security threats, whilst effective management of the night-time economy will reduce the potential for anti-social behavior.

Tallinn Efficient, required in labor market and well paid citizen of Tallinn Tallinn with highly productive economy; Intellectually and physically active citizen of Tallinn Tallinn with diverse activity opportunities and full of experiences; Safely growing, versatility developing and life long learning citizen of Tallinn educated, capable and open Tallinn; Protected and assisted citizen of Tallinn Tallinn with managed risks and (socially) safe; Citizen of Tallinn sustainably connecting and valuing home, work and rest Tallinn with cozy, inspiring and environmentally sound urban space; Citizen of Tallinn performing local government democratically and purposefully Tallinn with knowledge based administration and appropriate service culture and with effectively operating city institutions

Strategy Development: Strategic goals Goals arise from the vision and the defined strategic focus Meaning: to determine the main directions to achieve the vision and express the ultimate results that are to be achieved by the end of the planning period Preferably should have at least three, not more than six strategic goals Alignment control includes a horizontal dimension (mutual inter-sectoral alignment of goals) and a vertical dimension (alignment with the goals and orientations of superior strategies and plans) Indicators

Sofia example of goals TypeItem Economics goals Increasing the competitiveness of Sofias economy in Europe Maximizing employment opportunities for all residents Developing the service sector Social goals Promoting a better urban environment for the most deprived social groups Improving the maintenance of the housing stock Environmental and cultural goals Protecting Sofias cultural resources Protecting the environment

Strategy Development: Operational part Strategy Implementation Model (actors, roles, processes) Preparation of implementation plan ( project fiche, yearly planning ) Preparation of indicative financial plan (overall and yearly, type of sources) Human capacities development (development officer or unit) Communication and networking

Process SEA PESTSWOT Strategic focusing Strategic priority 3 Strategic priority 2Strategic priority 1 CITY DEVELOPMENT STRATEGY Sector focusing Economic development Social development Environment Programing Indicators Strategy creation Strategy implementation measures projects measures projects

Strategy implementation process Development Implementation Monitoring Evaluation

Important! Leadership Good and motivated team Partnership with stakeholders Analyze of data and information Logical and pragmatic thinking

Thank you! Institute of Urban Development Milanovic Ljubica [email protected]

development of strategy –methodology approach international conference: strategy planning process...

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