Strategic Planning and

Policy Analysis
Week 6
11 May 2022
Ref: Chapter 6: Planning, Implementation, and Evaluation in Public
Administration: An Action Orientation by Denhart & Denhart
 Today’s Agenda

• Strategic Planning;

• Planning Process;

• Policy Analysis.
Developing policies and programs, putting them into
operation, and measuring their success or failure
constitute an important and recurring cycle for public
and nonprofit managers.
 Important Terms
• Cost-benefit: Identifying and quantifying both
negative impacts (costs) and positive impact (benefits)
of a proposal, then subtracting one from the other to
arrive at the net benefit.
• Efficiency: Relationship between inputs and outputs.
 Important Terms
• Effectiveness: Extent to which a programme is
achieving or failing to achieve its stated objectives.
• Performance Indicators: Specific, quantifiable goals
that the agency strives for in pursuit of its substantive
objectives.
 Important Terms
• Performance Measurement: Careful and detailed
measurement of the achievement of programme
objectives and outcomes by an agency.
What is strategy?
 What is strategy?
• Strategy is about making sure that your organisation
arrives where you want it at a given time.
• Strategy is about shaping the future and is the human
attempt to get to desirable ends with available
means.
 What is strategy?
• Strategy is a system of finding, formulating, and
developing a doctrine that will ensure long-term
success if followed faithfully.
 What is strategy?
• When there is uncertainty in the organisation, strategy
serves as an organisational compass, pointing the direction
to where we need to go without disregarding where we are
or where we've been.
• Strategy is a crystal ball of the organisation, around which
all of the elements of the business can focus and rally.
 What is strategy?
• Strategy is the direction and scope of an organisation
over the long-term: which achieves advantage for the
organisation through its configuration of resources
within a challenging environment, to meet the needs
of markets and to fulfill stakeholder expectations.
 What is strategy?
• Strategy is an action that managers take to attain one or more
of the organisation’s goals.
• Strategy can also be defined as a general direction set for the
organisation and its various components to achieve a desired
state in the future.
• Strategy results from the detailed strategic planning process.
 Strategic Planning
• A manager in an organization utilizes resources for their
profitable outcome. It requires thorough and deliberate
planning.

• Developing policies and programmes, putting them into

operation, and measuring their success or failure constitute an
important and recurring cycle for public or nonprofit
administrator/managers.
 Strategic Planning
• Strategic planning is an essential tool for nonprofits
because this technique helps measuring performance
of a public organization in planning, implementation
and evaluation of a policy or programme.
 Strategic Plan
• Strategic plan is a vision of an organization's future and
the basic steps required to achieve that future.
• A good strategic plan should include goals and
objectives, desired outcomes, means for achieving the
goals, metrics for measuring the progress, timelines, and
budgets.
 Strategic Plan
• A thorough and comprehensive plan which
establishes the organization’s direction and
develops a roadmap for reaching its goals.
 Strategic Planning Versus
Long-term Planning
• Long-term planning is related to establishing goals
of performance objectives over a period of time; it
is less concerned with steps to achieve those goals.
(What & Where)
 Strategic Planning Versus
Long-term Planning
• Strategic planning implies that a series of action
steps will be developed as part of the planning
process and that these steps will guide
organization’s activities in the immediate future.
(What, Where and How)
 Why Strategic Planning is done?
Strategic planning helps an organization match its
objectives and capabilities to the anticipated
demands of the environment to produce a plan for
action that will ensure achievement of objectives.
 Why Strategic Planning is done?
Strategic planning affords stakeholders in an
organization the opportunity to learn more about the
organization, to share their perceptions of its strengths
and weaknesses, and to discuss critical issues affecting,
or likely to affect, the organization in the future.
 Why Strategic Planning is done?
The process should be designed to generate decisions
arrived at by consensus.
Single-person planning, while efficient, almost always
eliminates the opportunity to distribute ownership of
the plan — and, by extension, responsibility for the
organization's future — among key stakeholders.
 Why Strategic Planning is done?

In contrast, a consensual approach is likely to

ensure that key stakeholders believe in the
organization's vision of the future and are
committed to achieving it.
 Purpose of Strategic Planning
• The purpose of strategic planning is to understand
more about an organization’s stakeholders, clarify its
mission and values, ensure relevance to those that
the organization serves, and develop a vision for the
future.
 Purpose of Strategic Planning
• The expenditure must outweigh benefits in terms of
reduced operating cost and increased productivity/
better service delivery.
 Reasons for Strategic Planning by Public
Organizations

1. To give clarity and direction to the organization.

2. To choose among competing goals and activities.

3. To cope with expected shifts in the environment.

 Reasons for Strategic Planning by Public
Organizations
4. To bring together the thoughts and ideas of all participants
in the work of an organization.

5. To provide an opportunity for the widespread involvement

of leaders and citizens in defining the direction of the
community as it moves into future, thus building trust and
commitment.
 How Should a Strategic Plan Be?

• Customizable: One-size-fits-all plans don’t work.

Organizations are different and should consider their
particular needs when developing a plan.
• Adaptable: Timelines vary as well, depending on the
complexity and types of services the nonprofit offers.
 How Should a Strategic Plan Be?

• Measurable: Every strategic plan should have

measurable goals and specific timeframes.
• Implementable: Plans should be incorporated into
the day-to-day decision-making process.
 How Should a Strategic Plan Be?

• Actionable: Strategic plans should drive actions.

• Updateable: In case priorities change, strategic plans

may need to be updated.
Essential Components of Strategic Planning Process

• Preparation: Effective planning requires gathering information

and determining expected outcomes. Key tasks include locating
documents, including previous or existing strategic plans,
mission statements, annual reports and budgets.

• Listening: Gathering information from a variety of internal and

external sources, both written and verbal.
Essential Components of Strategic Planning Process

• Planning: Review the results from the listening and preparation

stages and use that data to develop a plan with specific goals.

• Evaluation: Roll out the plan. Take note of feedback from

stakeholders and staff. Keep track of how the plan fits with the
organization’s function and mission and use that information
for the next strategic plan update.
The Strategic Planning Process also encourages:

• Identification of goals and objectives.

• Development of clearly defined mission statements.

• Innovative information gathering and analysis.

• Consensus building.

• Efforts to align budget priorities with strategic plans.

Steps in Strategic Planning Process
 Step One: Statement of Mission
• Once stakeholders in an organization have decided that a
formal strategic plan is called for, the first thing you need to
do is to plan to plan.

• A concise and inclusive mission statement is essential.

(Where an organization wishes to go).
 Step Two: Environmental Analysis
• Information that describes organization's current situation
and the environment in which it operates. Planners often call
this a situational analysis or audit.

• Typically, it includes a narrative description of an

organization, including its history, values, mission, programs,
leadership, staffing, and finances.
 Step Two: Environmental Analysis
• PESTL analysis — an analysis of the Political, Environmental,
Social, Technical, and Legal factors currently affecting the
organization.
 Step Two: Environmental Analysis
• The planning team, in consultation with other stakeholders, to
establish the organization's strategic direction and priorities; to
identify goals and milestones on the road to achieving those
priorities; and to craft objectives designed to meet those goals.

• In making these decisions, the planning team should keep its focus
on the big picture — the things most likely to result in positive
change for the organization.
 Step Three: Strengths and
Weaknesses
• SWOT analysis — a detailed description of an organization's
Strengths, Weaknesses, Opportunities, and (competitive) Threats.

• Strengths and weaknesses indicate existing capabilities of an

organization.

• Opportunities indicate options available and Threats indicate the

challenges and means required to off-set these.
 Step Four: Values of Organizational
Leaders
• Leaders vary in creativity, energy and commitment which
has an impact on execution of strategic plan.

• Take into account values, interests and aspirations of those

who guide the organization into the future.
Step Five: Drafting the Plan and Develop
Alternative Strategies
• The executive management to draft a plan that outlines
those priorities and goals, along with any new staff
requirements needed to achieve the plan, budgets to
support the efforts, and a timeline for turning the vision
into reality.
Step Five: Drafting the Plan and Develop
Alternative Strategies
• The plan should then be reviewed and revised by planning
team and presented to the governing committee for
comments, suggestions, and approval.
Step Five: Drafting the Plan and Develop
Alternative Strategies
• Management should also take into account “scenarios of
the future” and contingency/alternative plan to meet
changes in the environment.

• A strategic plan, no matter how carefully conceived, is

worth very little if it isn't scrupulously implemented.
Policy Analysis
 Policy Analysis
Policy analysis is a technique used in public
administration to enable public administrators (civil
servants), and other stakeholders to examine and evaluate
the available options to implement the goals of laws and
elected officials. The process is also used in the
administration of large organizations with complex policies.
 Policy Analysis
It has been defined as the process of determining which of
various policies will achieve a given set of goals in light of
the relations between the policies and the goals.
 Policy Analysis
• Policy analysis is a process of examining and evaluating
the social, ethical, financial and other consequences
inherent in current and proposed policies at the local,
state and federal levels and developing the most effective
and efficient plans to achieve the desired results.
 Policy Analysis
• Policy analysis plays an important role in helping to define
and outline the goals of a proposed policy and in
identifying similarities and differences in expected
outcomes and estimated costs with competing alternative
policies.
 Policy Analysis
• Many public policies are designed to solve both current
and future problems, and thus policy analysis attempts to
forecast future needs based on past and present
conditions.
 Policy Analysis
• Exactly what is the nature of the problem?

• What would we be trying to achieve with the policy?

• What might be the alternative approaches?

 Policy Analysis
• What criteria would we use to evaluate alternatives?

• Policy Analysis is the process of researching or analyzing

public problems to give policy makers specific information
about range of policy options and their pros and cons.
 Fields of Policy Analysis
• Policy analysis can be divided into two major fields:

• Analysis of existing policy, which is analytical and descriptive – it

attempts to explain policies and their development

• Analysis for new policy, which is prescriptive – it is involved with

formulating policies and proposals e.g to improve social welfare)
 Different Groups Need to be Involved in
the Policy Analysis Process
• People who can provide information about the idea: These
include subject matter experts, economists and community
partners.
 Different Groups Need to be Involved in the
Policy Analysis Process

• People who are affected by the potential policy: These people

should come from different social, educational and cultural
perspectives and can tell analysts how potential policies could
impact their lives. Analysts should consider looking to community
members, community partners and decision-makers for their
perspective.
 Different Groups Need to be Involved in the
Policy Analysis Process
• People who control the resources necessary to implement
the policy: Often, this group includes public officials or
their staffers who understand how the policy might affect
economics or budget. Attorneys who can point out
potential legal problems should also be involved.
 Fundamental Steps used in Most Policy
Analyses
1. Research and identification/Definition of
Problem: Policy analysts determine the current situation
by reviewing existing policies, reading reports, scanning
the environment and looking at best practices.
 Fundamental Steps used in Most Policy
Analyses
2. Setting Objectives.

3. Describe possible options/Developing Alternatives: Using the

information from the research and identification stage, policy analysts
look at potential policies and determine who might be impacted (both
positively and negatively), the costs of the policy options, as well as
the benefits. It is also necessary to look at any barriers to
implementation that might exist.
Fundamental Steps used in Most Policy
Analyses
4. Analysing various Policies: Likely impact of the policies.

5. Ranking the choice/options: Once several options are on

the table, decision-makers rank the policy possibilities and
pick the best one to either present to higher authorities or
begin to implement.
 Responsibilities of a Policy Analyst
• Policy analysts often work with governments, think tanks,
special interest groups, consulting firms or research
organizations.

• They use public policy analysis models to collect information,

including statistical data, to evaluate proposed policy
solutions.
 Responsibilities of a Policy Analyst
• They also may be involved in analyzing and determining the
allocation of funds or other resources.

• Their results may be used by elected officials or other

decision-makers to determine a course of action.
 Outcome of Policy Analysis
• After policy analysts gather the information they need,
they often write reports or present their ideas and
recommendations to elected officials, government
committees or others in positions to make change
happen.
 Outcome of Policy Analysis
• After policies are implemented, analysts frequently
evaluate the results to determine whether the policy
accomplished its intended objectives.
 Outcome of Policy Analysis
• Analysts may also evaluate whether a program cost
more than originally anticipated and if its benefits
outweigh the expenses.
• Making sure the methods of an analysis are
transparent is important.
Questions?