DEVELOPMENT OF STRATEGY –METHODOLOGY APPROACHInternational 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 EUs priorities for supportCountry Development Strategy

Regional strategy, sectorial strategies and programs

City integrated development strategy and plans

Partnership principleMain 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

Steps Results

1. Initiating the planning processFormal 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 stakeholdersCompetent 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 platformSteps 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 externalfactors

SWOT and PEST

3. Strategic focus with key principles Strategy matrix

4. Creation of development vision and strategic goals (priorities)

Vision and strategic priorities established

5. HarmonizationAlignment 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

Political Economic Social Technological

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 MATRIX (v1)

STRATEGIC PRIORITIES EU PRIORITIES: SMARTH GROWTH (innovation, education, digital society), SUSTAINABILITY GROWTH (clime, energy, mobility, competitiveness), INCLUSIVE GROWTH (employment and skills, fighting poverty) HORIZONTAL ISUESS: social capital, sustainability, competitiveness STRATEGIC OBJECTIVE: MODERN REGIONAL CENTER, comfortable and livable city LOCAL GOVERNMENT

DEVELOPMENT ECONOMIC

DEVELOPMENT INFRASTUCUTRE

DEVELOPMENT SOCIAL DEVELOPMENT SPATIAL PLANNING

ADVANCE GOVERNANCE SYSTEM

MODERN REGIONAL CENTRE

NEW ECONOMIC BASIS FOR CITY PROGRESS –

MODERN REGIONAL CENTRE

HIGH QUALITY PUBLIC SERVICE.

MODERN CITY LIFE SUPPORT SYSTEMS

MODERN REGIONAL CENTRE

ADEQUATE HEALTH CARE MODERN REGIONAL

CENTRE CHILDREN FRENDLY CITY. ROBUST COMMUNITY

CARING FOR EVERYONE

COMFORTBLE AND INTERESTING CITY

MODERN REGIONAL CENTRE

BRIGHT AND DIVERSE CULTURAL LIFE

Civil society strengthening (City image- identity of city)

Creation of condition for SME development

Transport system (roads, all types of transport, mobility)

Children friendly city Strategy for spatial development (transport, economic and industry, public spaces, landscape and ecology)

Efficiency and effectiveness of local government

Infrastructure for SME (industry zone, business incubator, innovative center, clustering)

Energy efficiency and environmental protection. (SEAP, water, air, landfill)

Health

Sustainability (smart growth within city limits, redeveloping existing locations, stimulating public transport and bikes use, pedestrian friendly public space network, and clean industries)

Public services Workforce

Communal services Culture Creativity (cultural, tourism, sport and educational events, new city image with development impulse, regular ongoing activities)

Regional and international cooperation (EU integration process at local level)

Private investment

Social cohesion (inclusive society)

Knowledge and business (business locations and economic developments, broadband infrastructure, ICT use, university)

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 Item

Economics goals

Increasing the competitiveness of Sofia’s 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 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

ProcessSEA

PEST SWOT

Strategic focusing

Strategic priority 3Strategic priority 2Strategic priority 1

CITY DEVELOPMENT STRATEGY

Sector focusing

Economic development

Social development

Environment

Programing

Indicators

Strategy creation

Stra

tegy

imp

lem

enta

tion

measu

res projects

measu

res

measu

res 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 DevelopmentMilanovic Ljubica

milanovic@vmr.gov.ua