Advanced Management Development Programme

1. Block 1 Strategy and Policy Advanced Management Development Programme

2. Structure of the Programme • Block 1: Strategic Management • Module 1: Strategic Management • Module 2: Knowledge Management • Module 3: Policy Management & Public Accountability • Block 2: Mastering Management • Module 4: Public Financial Management • Module 5: Project Management • Module 6: Enhancing Service Delivery • Block 3 • Module 7: Results Through Leadership • Module 8: People & Performance Management • Module 9: Completing the Public Service Puzzle

3. Course Description • SAQA Information • NQF level: 6 • Credit value: 92 (Blocks 1,2 & 3)

4. Assessment • Class Attendance - 10% • Group Task - 20 % • Course Reading Material - 10 % • Individual Assignment (Portfolio of Evidence) - 60 %

7. Strategic Management Module 1

8. Learning Outcomes After completing this module you should be able to: • relate what Strategic Management involves to other colleagues in their departments; • apply the phases of Strategic Management; • apply the 8 basic steps of planning; • apply the logical framework approach for participation; and • apply the techniques of strategy formulation, evaluation and monitoring.

9. Basics: Strategy Q - What is strategy? A - It’s as easy as “ABC...”

10. Strategy: Creating “public value” is as easy as A-B-C... Vision – Mission - Goals Where you Are Where do you want to Be Strategy development Strategy implementation Monitor & Evaluate SWOT “PEST” Desired future Resource plans Financial plans Infrastructure plans How to get there (Course to follow) Bryson & Alston Not the only “model” – but the easiest to understand!

11. Testing understanding • In your groups, select an organisation • Using the ABC model of strategy formulation, how would you apply the three stages to this organisation

12. What is “Management?” A quick refresher The “4 functions” model • Planning • Organising • Leading • Controlling

13. The perfect marriage? Strategy Management Easy as “ABC” • Where Are you • Where do you want to Be • The Course to follow • The “4 functions” model • Planning • Organising • Leading • Controlling Henceforth you shall be known as “Strategic Management”

14. Testing understanding In the class, we will discuss the marriage and how it works

15. What is Strategic Management? • Changing Environment: • Continuous and rapid environmental change. • Responsive and flexible • Demands of customers • Rooted (but very much beyond) budgets and plans. • Positioning the organisation within organisation • Assess environment e.g. SWOT, Force Field Analysis, Root Cause Analysis, Critical Path Analysis etc.

16. What is the difference between strategic planning and strategy management?

17. Strategic Management is… • Formulating a long-term view (vision and mission) • Focused towards planning (setting objectives) and implementing programmes and projects that get you there • Using objectives as measurement to establish if the result attained the desired outcome; • An iterative process; • Continuous evaluation

18. Introduction and Definition…The strategic management process Phase 1 Phase 2 Phase 3 Planning Implementation Evaluation • Planning the • planning process: • Process plan • Implementing • the planning • Process • Evaluating the • planning process • through continuing • monitoring and end- • of phase evaluation • Planning the • Implementation • Process: • Implementation • Strategy • Implementing the • implementation • process • Evaluating the • implementation • process through • continuing • monitoring and end- • of phase evaluation • Planning the • evaluation process: • Performance • Assessment • Systems, etc. • Implementing the • evaluation process • Evaluating the • evaluation process • through continuing • monitoring and end- • of phase evaluation

19. In another way... Developing a strategic vision and business mission Setting objectives Crafting a strategy to achieve those objectives Improve / change Improve / change Review Revise Revise Implemen- tation Planning Evaluate Implement and execute the strategy Evaluate performance new development corrective action

20. Definition… • The planning (formulation) • implementation • and evaluation • of specific actions • that will enable an organisation to achieve its set • goals and objectives.

21. Activity 1.1

22. Testing understanding Imagine you are required to conduct an in-house training session at your Department. Discuss how you would explain to the learners what Strategic Management is. The objective is to be able to relate to others in simple terms what is involved in the process

23. Introduction and Definition…The strategic management process Phase 1 Phase 2 Phase 3 Planning Implementation Evaluation • Planning the • planning process: • Process plan • Implementing • the planning • Process • Evaluating the • planning process • through continuing • monitoring and end- • of phase evaluation • Planning the • Implementation • Process: • Implementation • Strategy • Implementing the • implementation • process • Evaluating the • implementation • process through • continuing • monitoring and end- • of phase evaluation • Planning the • evaluation process: • Performance • Assessment • Systems, etc. • Implementing the • evaluation process • Evaluating the • evaluation process • through continuing • monitoring and end- • of phase evaluation

24. Planning and Strategy Formulation Strategy Formulation Strategic Vision Strategic Mission and Purpose Strategic Goals, objectives and activities • Planning involves analysis of the status quo • Environmental Scoping • SWOT • Strategy formulation is a sub-activity of planning

25. Example strategic Plan: NPA Strategy Formulation Strategic Mission and Purpose Strategic Goals, objectives and activities Strategic Vision Justice in our society, so that people can live in freedom and security To provide an effective prosecution service which is prompt, vigorous and fearless in public interest, guided by the Constitution and Bill of Rights where we are all treated with humanity and sensitivity • Strategic Outcome Perspective • Customer Perspective • Internal Business Process Perspective • Financial Perspective • Growth and Learning Perspective • Strategic Outcomes • Priorities • Action Plans

26. Planning and Strategy Formulation… Structure follows Process,which follows Strategy. Planning is a process of deciding in advance where we want to get to and how to get there …

27. Planning and Strategy Formulation… Programmes Projects, sub- projects and activities Organisational strategies

28. Why is Planning Important? • Planning helps to: • identify goals clearly; • ensure that we all understand our goal and what we need to do to reach it; • see in advance those things that can help or hinder us in achieving our goal; • be accountable for what we do; • decide how best to use our resources; • Planning makes us work in a goal-oriented way rather than an ad-hoc way. • Planning lays the basis for us to assess and evaluate our achievements effectively.

29. Environmental Scanning • examine the factors in the external and internal environment • identify the impact of these factors on strategic issues relating to the organisation. • future orientated and is predictive in nature. • take cognisance of opportunities and threats.

30. Recap: A-B-C... Vision – Mission - Goals Where you Are Where do you want to Be Strategy development Strategy implementation Monitor & Evaluate SWOT “PEST” Desired future Resource plans Financial plans Infrastructure plans How to get there (Course to follow) Bryson & Alston

31. Process for Environmental Scanning(sometimes called the “PEST* ”) • Step 1: Selecting a time frame • Step 2: Choosing trend categories for analysis • Step 3: Collecting information • Step 4: Defining trends • Step 5: Determining possible impact of the trend on the department • Step 6: What consequences or planning issues result from the trend’s impact on the departments • Step 7: Prioritising impact and consequences • Likelihood • Impact • Time • Step 8: Documenting and reporting back *Political, Economic, Social, Technological analysis

32. Environmental Scan… The “environment” includes the following: • the natural environment; • the intellectual environment; • the social environment; • the economic environment; • the political environment; • the policy/ legal environment; • the institutional environment; • the technological environment.

33. SWOT Analysis… • The SWOT analysis goes hand in hand with environmental analysis. • Identify strengths, weaknesses, opportunities and threats surrounding the organisation. • A rule of thumb indicates that: • strengths and weaknesses typically occur within an organisation, and • opportunities and threats typically occur outside the organisation.

34. STRENGTHS WEAKNESSES SWOT… OPPORTUNITIES THREATS • Opportunities for change from the present situation to a preferred situation. • Problems or deficiencies which must be resolved. • Obstacles to performance that must be eliminated. • Can the organization on this level do something about it? • Are there any serious consequences if not addressed? • What practical alternatives can be generated to address these problems? Goals. • What actions with existing staff can be taken in the short term? • What specific steps can be taken? Tasks.

35. SWOT… • Alternatives to consider: • Opportunities can be exploited. • Threats can be countered. • Strengths can be optimised. • Weak points must not be exposed to the threats.

36. Remember… • Planning is future-oriented. • future activities aimed at the future achievement of specific objectives. • the planner should possess some vision of the future. • Planning is an intellectual activity. • requires insight, creativity and rational logical thinking. • Planning is action-oriented. • not an end in itself, but a means to an end. • result is a plan of action that has to be put into operation… • “plan your work and work your plan”

37. Remember… • Planning is a systematic process, • series of consecutive and interrelated steps. • Identify alternative ways of achieving objectives and a choose among alternatives. • Decision-making is an integral part of the planning process. • Questions to be asked are the following: • What are the objectives? • What should be done to achieve them? • When should this be done? • By whom? • Where? • How? • With what resources? • What variables play a role?

38. The strategy process • The choices made about objectives and about the approach you will use to achieve these objectives. • careful thought to how best to achieve what you want. • Strategy is not just a plan on paper – it is what you do and how you use your resources to do it. • Assess what you did, not what you said you would do. • Planned and used strategy often differs

39. Challenges facing Service Organisations • Goals • Complex, change society, difficult to specify and measure or have different meanings • Values • Different/conflicting values and expectations • Stakeholders • Different needs, interests and concerns • Difficulties in measuring achievements • Means vs ends • Connection between effectiveness and resources • Weak connections – not paid for services by clients • Success • Interdependence

40. Problems Arising from Ineffective Planning • Plans not understood the same way - confusion and conflict during implementation. • Different perceptions on what successful achievement means. • Lack of agreement about beneficiaries from our work. • Constant change - plans no longer seem relevant. • Difficulties due to complexity of goals and objectives. • Not being able to say what we have achieved – only what we have done. • Different understandings of why we adopt specific approaches.

41. Developing plans to assist in service delivery • Planning Approach • The 8 basic planning steps – (see next session) • Ensuring participation through the logical framework approach

42. Planning Approach • Participative • Systematic • Strategic • Include agreement on evaluation of progress and achievements. • Commitment from everyone • Planning and evaluation is a cycle of learning and improvement, (not a straight line from A to B!)

43. Testing understanding Discuss how you would ensure that planning is effective in a practical context. Relate your answer to your Departmental context.

44. Steps in planning • Basic planning PROCESS • Can used for any kind of planning: • Developing strategy • Programme planning • Project planning • Should be used as part of the cycle of planning – enables ongoing learning and improvement.

45. 8 Basic Planning Steps Step 1: Preparing to plan Step 2: Analyse the situation and needs. Step 3: Prioritise and select the Goal and Purpose. Step 4: Develop clear specific objectives. Step 5: Identify alternative strategies and select the most effective strategy. Step 6: Plan Implementation (Implementation Strategy) Step 7: Plan for evaluation (Assessment Systems) Step 8: Summarise your plan.

46. Take a break!

47. Step 1: Preparing to plan Ensuring commitment and developing the process plan. • Planning is part of the “real work itself”. • Planning takes up time, energy and other resources. • Planning lays the basis for effective ongoing thinking, action and achievement. • Involvement and participation of all stakeholders are of vital importance to effective planning processes. • Many public sector organisations underestimate the amount of time and commitment required for effective planning.

48. Step 2: Analyse the situation and needs • Collecting and analysing information to decide on a goal and a purpose that is: • Relevant to your target community or the service to be delivered; • Realistic in terms of what is possible and likely to make a difference; and • The most effective and appropriate contribution given the current situation you want to change. • Lays the basis for the rest of the planning process: • build a deeper understanding of the problem and the situation. • shared understanding, more effective decisions and a commitment to strategicaction.

49. Step 2: Analyse the situation and needs (cont.) • Forms the basis for your decisions in all the later steps. • Make decisions when choosing the following: • Goal: The changed situation in society your org aims to contribute to achieving. • Purpose: The result the org is expected to achieve. • Specific Objectives: Specific results that must be achieved to achieve the purpose. Should be specific, measurable, achievable, realistic and timeous (SMART). • Activities: The actions that must be taken – what must be done, by whom and by when.

50. Step 3: Prioritise and select the Goal and Purpose • Important to decide on the goal because: • Tells what change you hope to contribute to bringing about. • Is a clear statement of the future situation. • Is longer-term aims the org contribute to bring about. • Tells us why we do what we do. • Is the final basis on which to evaluate what have been achieved. • Is the vision that guide everything else you do. • All further programmes/project planning must be relevant to helping bring this about.