Canadian Government Executive - Volume 26 - Issue 05

By Mark Schacter What is Strategy? What is Strategic Thinking? Why Do They Matter? 20 / Canadian Government Executive // January/February 2021 LEADERSHIP P ublic-sector leaders make daily decisions about activities they should and should not get in- volved in. A typical organiza- tion has a long list of activities it could, in principle, undertake; fewer ac- tivities are feasible for the organization to undertake, and fewer still are ones that the organization should undertake. Some doors must be opened, and others closed. Decisions must be made. Strategic thinking guides decision- making about what, and what not to do. A “strategy” results from examining what an organization wants to accomplish, what is realistically possible for the organization to accomplish, and how the organization expects to get things done. You can develop a strategy by addressing three questions: 1. To which social/economic outcomes do we want to contribute? • which set of outcomes can we choose to produce the best match between our own vision/values and the needs/wants/ex- pectations of diverse stakeholders? 2. How do we expect to contribute to out- comes? • whom will we serve? • what benefits will we deliver? • how will benefits be delivered? 3.What resources will be required to de- liver the intended benefits? It will probably be necessary to cycle two or three times through the questions, be- cause each one affects the other two. For example, after working through the the organization has decided to move; • clarify critical management tasks to ad - vance the strategic agenda; these might include: o nurturing key sources of political, stakeholder or internal organizational support; o communicating key messages to stake- holders; o investing in key elements of organiza- tional capability; and • generate buy-in within and outside the organization. Within the organization, a clear and compelling strategy sends a message about the kinds of projects and behaviours that will be favourably viewed. Externally, a strategy perceived as well aligned with stakeholder interests helps generate enthusiasm and support. Final point: producing a formal strategic plan document - though usually necessary - is not an inherently important aspect of strategic management. The document is not an end in itself, nor is it evidence that a viable plan has been created. Buy-in to the strategic plan and success- ful implementation are what matter. An elaborately produced planning document that gathers dust is worthless. Mark Schacter is a management consul- tant based in Ottawa. For more than 20 years he has advised governments, NGOs and international organizations on strategy development, strategic planning, performance measurement and other core public management issues. first two questions it may become appar- ent that the organization lacks resources to deliver all the benefits identified in the second question. This might cause you to reconsider your initial views on what the organization should deliver (second ques- tion), or on the outcomes it should pursue (first question). Or, if consensus developed around the first and second questions is non-nego- tiable, you may decide to pursue new sources of funding or other (non-financial) resources (third question). This iterative, looping back and forth be- tween what is hoped for and what is pos- sible -- until an acceptable middle ground is reached -- is an essential element of strategic thinking and strategic planning. Strategy results from thinking about how to change the future while bearing in mind the realities of the present. A strategy describes a path (but not detailed steps) by which a public-sector organization will create public value (con- tribute to outcomes that improve life for its beneficiary population). This is why strategy development is essential to lead- ership. A sound strategy helps executives navigate conflicting demands and expec- tations of stakeholders, the constant dis- tractions affecting staff, and the uncertain- ties of an unstable funding environment. Specifically, a strategy helps leaders: • maintain (in the face of urgent demands to address short-term issues) focus on long-term social/economic outcomes; • rule out projects or areas of focus that are inconsistent with the direction in which