Portfolio of Initiatives in Government Strategic Planning: A Case Study of Saudi Arabia’s Financial Sector Development Program
Image Source: Freepik
The Portfolio of Initiatives is a valuable tool used in strategy planning for organizing and prioritizing a collection of initiatives or projects to ensure that they are aligned with strategic goals and objectives. By utilizing this tool, governments can effectively allocate resources, closely monitor progress, and make informed decisions about the implementation of various initiatives in an efficient manner.
However, governments face challenges when developing and managing portfolios of initiatives. Limited budgets, workforce, and time constraints are common obstacles to the effective execution of initiatives by governments.
The integration of strategy into the day-to-day activities of frontline staff is essential. When this integration is lacking, there is a risk of employees focusing on initiatives that are not in alignment with the organization’s strategic priorities.
Furthermore, the absence of cohesive implementation strategies across different government departments can result in fragmented efforts and hinder the overall success of the portfolio. Effective coordination and cooperation between departments are necessary to ensure a unified approach and maximize the impact of initiatives.
To improve the management of its Portfolio of Initiatives, the government should consider implementing the following practices:
- Align initiatives with strategic objectives
- Implement a monitoring tool for performance tracking
- Define clear success criteria with specific goals and milestones
- Allocate resources based on strategic priorities
- Assess the impact of each initiative
Read More >> Charting a Course: A Step-by-Step Guide to Deliberate Strategic Planning
The Saudi Vision 2030 is an illustration of an extensive Portfolio of Initiatives. It is a government portfolio comprising projects, programs, and sub-programs aimed at achieving 96 strategic objectives. It serves as a documented plan, outlining the long-term direction and goals for the Kingdom of Saudi Arabia (KSA).
While the KSA is driving its economic transformation through Vision 2030— involving mega-projects, modernization, and reforms—its financial sector is undergoing a significant transformation in terms of revenue growth. As a result, the banking sector is currently enjoying increased profitability. This is also fueled by the Financial Sector Development Program (FSDP), which was launched in 2017 to enable financial institutions to support the growth of the private sector, develop an advanced capital market, and boost and enable financial planning.
In its program charter 2022, the FSDP unveiled a strategic framework comprising specific initiatives for each established pillar aimed at realizing the bold ambitions outlined in the Saudi Vision 2030.
There are two specific initiatives that are part of the first pillar of the FSDP, which focuses on enabling financial institutions to support private sector growth (see Figure 1).
Figure 1. Sample initiatives under FDSP’s first pillar | Adapted from FSDP Program Chapter 2022
By presenting the information in a structured manner, the portfolio offers stakeholders and decision-makers a holistic view of the initiatives in correlation to the main objectives. The framework also facilitates a clear understanding of the initiatives’ names, descriptions, leading entities, expected impact, and the specific program metrics that will be influenced, which can contribute to effective prioritization, resource allocation, and strategic decision-making.
To ensure greater comprehensiveness and clarity, the framework could be enhanced by incorporating explicit milestones as measurable indicators of progress and to illustrate the prioritization of resources and initiatives.
Read More >> Why a Plan Is NOT a Strategy
In conclusion, the Portfolio of Initiatives is vital for government strategic planning. By adopting best practices, governments can overcome challenges and implement initiatives with positive outcomes. The portfolio approach has proven effective in Saudi Arabia’s FSDP, aligning initiatives with strategic objectives and efficiently allocating resources for sectoral transformation and growth.
**********
Editor’s Note: This article was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Edition.
