The Strategy Unit Who we are and what

The Strategy Unit : Who we are and what we do Presentation for Conference on Strategy and Strategy Implementation in Government Berlin March 2009

The purpose of this presentation is… • To describe the role of the Strategy Unit in the UK Cabinet Office and its current work programme • To draw out some lessons from how we work, including the key drivers of success of a strategy function in government such as the SU 2

The Strategy Unit: origins and reporting line • Formed in 2002 (but predecessor Units date back to 1998) to improve the Government’s capacity to address long term &/or cross-cutting strategic issues and to promote innovation in policy development and the delivery of the Government’s objectives • Based in the Cabinet Office, and reports to the Prime Minister through the Minister for the Cabinet Office • Distinct from the PM’s Policy Unit in its status (civil servants not special advisers), role (strategic policymaking, not political advice or day to day briefing) & size • Overseen by Commissioning Boards in the PM’s office (one covering domestic policy; the other foreign policy) which advise on priorities for new work but the PM takes the final decisions • Has evolved considerably over time but also a great deal of continuity. Main changes: increasingly flexible in outputs/ways of working and increasingly focused on the PM’s/Government’s highest priorities 3

The Strategy Unit: current roles • To provide strategy and policy advice to the Prime Minister/PM’s office • To support departments in developing effective strategies and policies, including helping them to build their strategic capability • To identify and effectively disseminate emerging issues and policy challenges There is no area of domestic or international policy on which the SU could not (in principle) be asked to work 4

The Strategy Unit: how we add value • We provide analytical capacity to help ensure problems are fully understood, and strategies and policies are evidence-based • We provide strategic policymaking capacity to help ensure policy goals, trade-offs between them and the full range of options for achieving goals are considered and assessed • We provide critical challenge based on facts and evidence – for the PM/No 10 and departments • We provide a high quality, highly flexible and responsive resource for the PM of the day 5

The Strategy Unit: outputs • Advice and analysis for the PM/No 10 and Ministers • Joint work with departments culminating in a White Paper, Green Paper or other policy statement • SU-led strategy reviews • Think pieces/discussion papers • Individual projects or pieces of work can take 3 -5 weeks to 3 -5 months or longer • These outputs may be stages in a phased process rather than alternatives 6

The Strategy Unit: impacts • Specific policy changes e. g. the redesign of the child support system/CSA; introduction of Individual Budgets for the elderly and disabled etc • Re-framing or raising the profile of issues e. g. the Government’s approach to public service improvement, new ways of tackling social exclusion etc • Raising the profile of strategy and strategic management e. g. strengthening strategic capacity at the centre and in departments 7

The Strategy Unit : when to use it • The SU is not the only way of undertaking strategic analysis and policymaking: – departments have their own strategic policymaking functions – independent reviews (such as the Turner Pensions Commission or the Stern report on climate change) also have a crucial role e. g. in building national consensus for change • So why use the SU? – not unreasonable that a PM/the centre of government would want its own strategic policymaking function to offer an independent view, to provide a second opinion etc – the SU is at the heart of government decision-making processes so well placed to ensure strategic analysis and policymaking feed directly and effectively into collective decision-making processes – departments’ strategic capability can vary significantly 8

The Strategy Unit: distinctive ways of working (i) • Few day to day responsibilities – focus on the important rather than the urgent – work is project based with teams forming/disbanding as commissions are received/work is completed • Analytical rigour and an evidence-based approach are core values of the Unit – only recruit people with outstanding analytical skills – there are no silos separating “analysts” from “policy advisers” • Works closely, often jointly and sometimes co-located with central government departments – helps to ensure a holistic and cross-cutting approach – lays the ground for effective implementation – helps spread best practice in strategic policymaking 9

The Strategy Unit: distinctive ways of working (ii) • Open approach to its work – most published in some form • Staffed by a mix of permanent civil servants and others – permanent civil servants generally come on loan from other departments – other staff come on secondments or fixed term contracts from the private sector; academia; think-tanks; and overseas – currently around 47 -48 staff (50 at full complement) 10

The Strategy Unit: current work and projects include… (i) Six standing teams doing project work: – Education, including what makes for world class schools – Health, including public health/prevention, health sector productivity & the future of maternity services – Home Affairs, including mental health & offending and serious organised crime – Public Services, including follow up to a recent report on achieving world class public services – Welfare reform issues, including the integration of welfare & skills policies and advancement in the workplace – Foreign Policy, a new team currently scoping future work 11

The Strategy Unit: current work and projects include… (ii) Six time-limited projects: – Future sources of wealth creation, looking at future sources of UK comparative advantage and the policy framework needed to support growth sectors – Employment & the workplace, looking at prospects for the labour market over the next decade including returns to work at different skill levels – Transport, analysing the key challenges facing urban transport systems across the country and developing strategies for improving urban transport and the people friendliness of cities – Care – a review of trends in the demand need for care and how to respond to them in support of a social care Green Paper – Older People – a refresh of the ageing strategy – Fair access to the professions – supporting a panel established in follow up to a recent White Paper on social mobility 12

The Strategy Unit: assessments of Strategic Challenges facing Britain inform future work As well as projects on particular issues, the SU carries out regular overall assessments of the strategic challenges and opportunities facing Britain. Such assessments: • Take stock of the UK’s overall performance and review progress towards the Government’s long term objectives • Review future challenges and opportunities • Identify potential gaps in current strategies and policies, and thus inform current and future SU work Have culminated in published assessments in 2003, 2005 and 2008 (available at www. cabinetoffice. gov. uk/strategy/) 13

The Strategy Unit: there a number of ways in which the Strategy Unit helps departments to build their strategic capability • Joint working – doing strategy with departments is the best way to help build capability • Interchange of staff – both to and from the Strategy Unit – there are now hundreds of SU alumni in various posts across government • Sharing of knowledge and best practice – Strategy Survival Guide • Challenge • Discussion of strategic issues – Lunchtime seminar programme 14

The Strategy Unit: lessons from how we work There are four key drivers of the success of a strategy function in government such as the SU: (a) Clear roles and effective governance – The Unit has three clearly defined roles – It focuses on the important rather than the urgent (few day to day responsibilities) – It is overseen by Commissioning Boards in No 10 which ensure the Unit only does work its key customers really want. Ensures a relevant work programme, builds trust in the Unit and provides support for flexible way of working. Trust is crucial to being able to challenge on the basis of facts, evidence and analysis 15

The Strategy Unit: lessons from how we work (b) A flexible operating model – All work is project based – No fixed internal structure – a resource pool from which teams are set up/disbanded as commissions are received/projects are completed. Everything we do is therefore demand led – Management/HR systems that support flexible, project-based working – Projects may be SU-led; jointly undertaken with departments; colocated in departments – Little hierarchy – Director; Deputy Director/team leader; team member – Strong emphasis on effective project management – all work has a beginning, middle and an end 16

The Strategy Unit: lessons from how we work (c) Recruit good people able to work very flexibly – Few permanent staff. Staff come in on loans from departments or on secondment/fixed term contracts from outside for periods of up to two years. Allows poor/coasting performers to be quickly removed – No distinction between analysts and policy people. Everyone is expected to have outstanding analytical and strategic thinking skills plus good team working, inter-personal, influencing and communication skills – for which they are tested at interview – Staff are recruited primarily on the basis of their generic skills – so can work on any issue – Lots of support and development opportunities including tailored courses in how to do strategy work, top down thinking, economics for non-economists etc plus ample opportunities for secondments to departments or outside the civil service 17

The Strategy Unit: lessons from how we work (d) Innovative and creative ways of working – Strong emphasis on knowledge management – Effective use of networks/contracts to lever knowledge of others: alumni; experts on call-off contracts; ESRC/academic links; international contacts; think tanks; Foresight/Horizon Scanning Centre etc – Make full use of knowledge/skills of everyone in the Unit: BBLs; Big Fridays; red teaming; buddying; career management etc. Use peer pressure within the Unit to drive standards not just top down management – Participate fully in Cabinet Office virtual and matrix teams – Openness; most of the Unit’s work is published; active lunchtime seminar series with top speakers; regularly updated website etc 18

Contact details Stephen Aldridge Director Strategy Unit Cabinet Office Room 4. 5 Admiralty Arch The Mall London SW 1 A 2 WH UK Tel: 0207 276 1470 E-mail: stephen. aldridge@cabinet-office. x. gsi. gov. uk www. cabinetoffice. gov. uk/strategy/ 19