DEVELOPMENT OF STRATEGY METHODOLOGY APPROACH International Conference Strategy
- Slides: 22
DEVELOPMENT OF STRATEGY –METHODOLOGY APPROACH International Conference: Strategy Planning Process at Local Level Vinnytisa, 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 EU s 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 Ø Preparatory part Ø Strategic platform Ø Operational part PARTNERSHIP 2. IMPLEMENTATION 3. MONITORING 4. EVALUATION • Participative approach: collective process with involvement of authorities, social partners and organizations from civil society.
Strategy Development: Preparatory phase Steps Results 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 Local development partnerships (forum launching of the process or focus groups) established
Strategy Development: Strategic platform Steps Results 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 principles Strategy matrix 4. Creation of development vision and strategic goals Vision and strategic priorities (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 ü ü Strengths Weaknesses Specialist expertise A new innovative product Quality procedure Location ü Lack of marketing expertise ü Poor quality of services ü Damage reputation Opportunities Threats ü Internet sale ü Mergers, joint ventures or strategic alliances ü New markets ü New competitor ü Price wars ü Taxation
PEST example Political Economic OPPORTUINITES OPPORTUNITIES ü Inflation rate ü Tax policy ü Exchange ü Employment rates laws ü Trade tariffs THREATS ü Price war at THREATS market ü Political ü New stability competitor Social Technological OPPROTUNITIES OPPORTUNITES ü Corporative ü Automation responsibility THREATS ü Career attitudes THREATS ü 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 world’s 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 City’s 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 Type ü Economics goals Item Increasing the competitiveness of Sofia’s economy in Europe Maximizing employment opportunities for all residents Developing the service sector ü Social goals Promoting a better urban environment for the most deprived social groups Improving the maintenance of the housing stock ü Environmental and cultural goals Protecting Sofia’s 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 PEST SWOT Strategic priority 2 Strategic priority 1 Strategic priority 3 Sector focusing Social development Economic development Environment s re su ea m s re su ea cts m re su ea oje cts oje pr pr s Programing m Strategy creation CITY DEVELOPMENT STRATEGY Indicators Strategy implementation Strategic focusing
Strategy implementation process Development Evaluation Implementation Monitoring
Important! Leadership Logical and pragmatic thinking Analyze of data and information Good and motivated team Partnership with stakeholders
Thank you! Institute of Urban Development Milanovic Ljubica milanovic@vmr. gov. ua
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