In an era of uncertainty, determining what impacts an organization’s direction is as important as identifying those factors, understanding the risks, and knowing which ones truly matter. Achieving such clarity is possible through strategic foresight, a structured approach used to anticipate opportunities and challenges to prepare for future changes. This approach is even more crucial in the government sector, where authorities are responsible for public resources, well-being, and long-term stability.
Singapore serves as an exemplary case study in this realm. The country ranked fifth in the World Intellectual Property Organization’s Global Innovation Index 2023 and has been recognized for its ability to translate “innovation investments into innovation outputs.” Similarly, the Singapore Country Report 2024 for the BTI Transformation Index, where Singapore ranks 21st out of 137, provides further examples of how the country maintains strategic priorities and implements policies effectively in several areas.
Singapore’s adaptability is also reflected in its ranking in The KPI Institute’s Government Service Index 2023. Singapore ranked first in Future Readiness, which, in the context of government services, refers to the capacity and preparedness of government agencies and institutions to adapt, innovate, and effectively meet society’s evolving needs and challenges in the future.
Future readiness also emphasizes forward-thinking and proactive approaches to governance. Several perspectives were assessed in this dimension of the index, wherein Singapore took the top spots in Strategic Prioritization (first), Innovation (second), R&D Expenditure (second), Regulation of Emerging Technologies (second), Investment in Green Energy and Infrastructure (fifth), and Hightech and Medium-high-tech Manufacturing (first).
Singapore’s decades-long history of planning, as noted on the Centre for Strategic Futures’ (CSF) website, started with an experiment in the Ministry of Defence in the late 1980s. It was further refined in 1995 when the Scenario Planning Office was set up in the Prime Minister’s Office. In 2003, it was renamed the Strategic Policy Office (SPO) “to reflect the strengthened links between foresight work and strategy formulation.”
In 2009, the CSF was established within the Strategic Policy Office to focus on whole-of-government strategic planning and prioritization. Its vision is “to build a strategically agile public service ready to manage a complex and fast-changing environment.” This suggests a focus on adapting governmental structures and processes and emphasizes the importance of flexibility within the public sector to address future complexities and changes. Its mission is focused on three main areas: “building capacities, mindsets, expertise, and tools for strategic anticipation and risk management; developing insights into future trends, discontinuities, and strategic surprises; and communicating the insights to decision-makers for informed policy planning.”
Strategic Foresight Tools
To develop insights into future trends, the CSF applies sophisticated strategic foresight tools recognized as Scenario Planning Plus (SP+). SP+ serves six purposes: defining focus, environmental scanning, sense-making, developing possible futures, designing strategies, and monitoring. The process goes as follows: the nature of the problem is established first, and then problems are divided into five domains—simple, complicated, complex, chaotic, and disorder—using tools such as complexity theorist Dave Snowden’s Cynefin Framework Problem Definition.
Subsequently, with Driving Forces Analysis and Prioritisation [sic] tools, potential trigger events are examined based on how they can influence existing trends and then subsequently ranked according to their potential impact on stakeholders. Afterward, Scenario Planning is used to generate narratives and models to comprehend conceivable future conditions. This method makes use of stories to depict possible future scenarios, questioning assumptions and stimulating deliberation on long-term strategies.
One of the responsibilities of the CSF is to distribute the SP+ toolkit throughout the Singaporean Government. To achieve this, the center conducts a series of workshops called “FutureCraft.” Experts are invited to join said workshops, which focus on introducing key skills and tools relevant to government foresight work. Through its publications, the CSF disseminates information that aims to address real-world challenges and offer different approaches to envisioning the future, such as the Driving Forces Cards 2040.
By embracing strategic planning as a core approach, the Singaporean government fosters resilience, adaptability, and competitiveness, thus paving a sustainable path for the country’s future. Governments across the globe can learn from Singapore’s example of creating strategic foresight units to become better equipped to make informed strategic choices, anticipate potential complex socioeconomic obstacles, and gain a competitive edge.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 30, 2024 – Government Edition.
Transparency is a fundamental principle in the public sector, characterized by openness, communication, and responsiveness. It demands that public institutions disclose their activities and decisions to citizens, directly impacting their accountability and contributing to improved public administration performance.
In The KPI Institute’s Government Services Index (GSI) 2023 report—a comprehensive compilation of indicators designed to evaluate government service performance based on five key dimensions: Future Readiness, Digitalization, Governance, Society Welfare, and Citizen Experience—the transparency of governments worldwide was assessed within the Governance dimension. According to the findings, Australia holds the ninth position in the Governance dimension and placed sixth in Transparency. A key factor contributing to these rankings is the Commonwealth Performance Framework (CPF), which serves as a central component in the Australian government’s commitment to transparency and accountability.
The Framework for Transparency in Australia’s Public Sector
The CPF is a performance measurement system established by the Australian government to evaluate the government bodies subject to the Public Governance, Performance, and Accountability Act 2013. The framework (see Figure 1) offers a structured approach for planning, measuring, and reporting on the efficiency of public initiatives and operations.
Strategic Planning: Government bodies must formulate corporate plans, outlining their objectives, strategies, and anticipated outcomes. Additionally, the Portfolio Budget Statements aids in resource management, detailing the allocation of resources to government outcomes and programs.
Performance measures embedded within these plans must align with the entity’s purposes or critical activities. These measures should be reliable, verifiable, and unbiased when assessing the entity’s performance. They ideally encompass a mix of qualitative and quantitative indicators, including measures of outputs, efficiency, and effectiveness. Moreover, they should facilitate longitudinal assessments of performance over time.
For example, the Department of Foreign Affairs and Trade’s 2022–23 Corporate Plan provides an overview of the entity’s performance information. The department’s transparency is evident in its clear outline of priorities and objectives, providing a transparent view of planned actions. This transparency is strengthened by the inclusion of delivery targets and various data collection methods. Moreover, regular performance assessments, conducted internally and externally using diverse data sources, further enhance transparency by offering a reliable basis for evaluating the department’s progress.
Additionally, the Department of Foreign Affairs and Trade’s Portfolio Budget Statement 2022-23 reveals the budgeted expenses for the programs specified in the Corporate Plan. The transparent nature of these documents benefits various stakeholders. Senators and Members of Parliament gain insights into the proposed allocation of resources, while the public gains an understanding of the government’s focus. Businesses also receive clarity on trade and investment priorities, and partner countries find opportunities for collaboration. Furthermore, the commitment to incorporating indigenous perspectives into Australia’s international diplomacy is showcased, fostering inclusivity.
Performance Measurement: Measuring performance under the CPF involves developing performance information that allows stakeholders to assess how an entity’s activities support the achievement of its purposes. Performance measures, outlined in the planning documents and spanning at least four reporting periods, provide an extended base for evaluation.
Actual performance results are published annually in Annual Reports. These reports include Annual Performance Statements that assess and analyze the entity’s performance for the reporting period. They detail the entity’s achievement of its objectives against specified targets and provide an analysis of factors influencing performance. This analysis encompasses changes to the entity’s purposes, activities, organizational capabilities, and external environment.
To round out the example, here’s a snippet from the department’s Annual Performance Statement, highlighting the performance results for the fourth priority of Outcome 1 (see Figure 2), as outlined in the Corporate Plan.
Figure 2. Summary of performance results | Adapted from: Australian Government – Department of Foreign Affairs and Trade Annual Report 2022-23
Out of the seven priorities, Priority 4: Deliver an effective and responsive development program stands out as it is the only one that, by far, was able to achieve its goal. Through it, Australia’s development program that promotes health security, stability, and economic recovery became responsive. Moreover, it facilitated timely and effective government responses to humanitarian crises.
Transparent Reporting: Government bodies are required to report on actual results achieved against performance measures outlined in planning documents. These reports include audited financial statements, non-financial performance information, and other pertinent reporting details.
Subsequently, responsible ministers table these reports in parliament for thorough scrutiny and accountability. Following their tabling, these reports are made publicly accessible on the Transparency Portal, the central repository and data store of publicly available corporate planning and reporting information, enhancing transparency and accountability in government operations.
Australia’s success in transparency, as demonstrated through the CPF and reflected in the GSI 2023 rankings, positions the country as an exemplary model of best practice. It showcases Australia’s proactive stance in fostering public trust, informed decision-making, and continuous improvement.
Sustaining and strengthening transparency efforts will foster trust between governments and citizens, drive positive change, and achieve sustainable development goals. By upholding the principle of transparency, governments can build resilient, responsive, and accountable institutions that serve the needs of all citizens.
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Editor’s Note: This was originally published in Performance Magazine Issue No. 30, 2024 – Government Edition.
In their 1985 paper “Of Strategies, Deliberate and Emergent,” Henry Mintzberg and James A. Waters describe strategic planning as a continuum. There is deliberate strategic planning on one end and emergent strategic planning on the opposite.
Deliberate strategic planning represents a structured, systematic approach to strategy development that emphasizes a planned, intentional, and coherent process whereby organizations set clear objectives and design strategies to achieve them. This approach presupposes a stable environment where goals and actions align closely.
On the other hand, an emergent strategy is more adaptive, arising from patterns of action rather than premeditated plans. While emergent strategies thrive on flexibility and responsiveness, deliberate strategies emphasize clarity, predictability, and alignment with long-term objectives.
Despite the growing popularity of emergent strategic planning, the deliberate approach remains vital for corporations aiming for sustainable success. One of its core strengths lies in the distinct roles it ascribes to top management and middle managers. In the deliberate process, top management acts as architects of the strategy, setting overarching goals and ensuring alignment with the organization’s vision, while middle managers focus on operationalizing these strategies and managing their implementation.
As outlined by J. Scott Armstrong in his paper on the importance of value planning in making strategic decisions, deliberate strategic planning unfolds in four distinct phases, with each phase contributing to securing stakeholder commitment. Before diving into these phases, it is important to recognize that historical data serves as one of the cornerstones of the process. Organizations rely on their data repository to provide past performance metrics and external trends.
Top management can utilize historical data to identify patterns, trends, and benchmarks, which they can then use to design actionable plans. Meanwhile, middle managers can use this data to refine tactical operations, ensuring that daily activities align with strategic objectives. Having a robust data architecture not only allows a company to more accurately analyze what has happened but also to forecast future trends, mitigate risks, and design strategies grounded in evidence rather than conjecture. With this foundation, organizations can proceed through the deliberate strategic planning phases with clear direction.
Defining Long-Term Objectives: The first phase involves defining the company’s long-term goals or ultimate objectives. These goals must align with the aspirations and priorities of various stakeholders, such as employees, investors, and customers. Tools like stakeholder analysis can identify key interests and concerns, while SWOT analysis evaluates the organization’s strengths, weaknesses, opportunities, and threats. Furthermore, in later stages of this planning process, the use of SMART criteria—specific, measurable, achievable, relevant, and time-bound—ensures the clear statement and actionability of goals. By integrating these tools, companies create a foundation for a cohesive strategic vision that resonates across all stakeholder groups.
Generating Strategies: The second phase centers on generating strategies and alternative approaches to achieving these long-term goals. Companies must consider comprehensive strategies that incorporate slack resources—such as additional time, finances, or facilities—to account for uncertainty and enhance the plan’s flexibility. Generating alternative strategies is a crucial practice that bolsters adaptability. Techniques such as brainstorming sessions, unstructured group meetings, and scenario planning encourage creativity and provide contingency options. This phase ensures that the organization has a repertoire of well-thought-out strategies ready to deploy, even in dynamic or unpredictable environments.
Evaluating Strategies: After developing strategies and alternatives, the third phase evaluates their feasibility in relation to the first phase’s objectives. This evaluation process ensures that the proposed strategies are realistic, effective, and aligned with the company’s mission. Methods such as checklists, the Delphi technique, and the Devil’s Advocate approach provide structured ways to scrutinize strategies. For instance, a checklist can ensure that all critical factors, such as resource availability and market conditions, are considered. The Delphi technique harnesses internal expert consensus, whereas the Devil’s Advocate method identifies potential flaws or risks. This rigorous evaluation phase narrows down the list of strategies to those most likely to succeed.
Strategy Monitoring and Implementation: The final phase involves systematically monitoring the results of implemented strategies. Companies should establish a feedback system with clearly defined intervals—such as quarterly or semi-annual reviews—to assess performance and make necessary adjustments. This system must account for changes in external factors, such as economic, technological, geopolitical, and social shifts, as well as internal factors like evolving strengths, weaknesses, and competitive actions. Key performance indicators (KPIs) serve as a critical tool for monitoring progress, enabling organizations to measure outcomes against predefined benchmarks. Integrating KPIs into the company’s performance management system and linking them to the organizational incentive system ensures accountability and motivates stakeholders to align their efforts with strategic goals.
Securing Stakeholder Commitment
A deliberate plan significantly enhances a company’s ability to secure stakeholder commitments throughout the process. A well-structured plan not only communicates the company’s long-term objectives but also fosters a sense of ownership among stakeholders. For instance, engaging stakeholders in the development of alternative strategies allows them to voice their concerns and align their interests with the organization’s goals.
Similarly, an accurate feedback and monitoring system ensures transparency, showing stakeholders how their contributions influence outcomes and incentivizing them to remain invested in the strategy’s success. This is especially crucial in large corporations where the different parts of the organization must work in alignment with the organization’s objective.
Strategic Foundation
Deliberate strategic planning remains an indispensable tool for organizations, offering clarity, structure, and alignment in an increasingly complex business environment. While emergent strategies provide flexibility and responsiveness, deliberate strategies establish a solid foundation that guides decision-making and ensures consistency.
Technology such as big data further enhances this process by equipping organizations with more comprehensive and timely datasets to generate actionable insights, maintain advantages, and refine strategies with greater precision. Furthermore, many companies could benefit from leveraging both approaches, enabling top management to define clear objectives while empowering all levels of management to adapt and innovate. This integrated approach ensures that organizations remain resilient, adaptable, and primed for success in the face of evolving challenges.
In the world of strategic planning, the guiding light of SWOT analysis looms overhead, illuminating the path of organizations as they strive toward success. SWOT is an abbreviation of Strengths, Weaknesses, Opportunities, and Threats; it is an effective framework that empowers businesses to navigate the complexities of decision-making. It offers a structured lens through which organizations can examine their internal resilience, vulnerabilities, external openings, and looming challenges. This comprehensive analysis serves as the cornerstone for strategic planning, innovative thinking, resource allocation, and adaptive strategies.
At its heart, SWOT analysis is a well-organized exploration of what an organization does well and where it could improve (those are the internal bits), as well as the changes and challenges it faces from the outside world (that’s the external stuff). Think of it as seeing the bigger picture of where an organization is right now and where it might be headed in the future. It is more than just a tool; it’s a trusty compass that helps steer the ship through the twists and turns of business strategy.
The key components of SWOT analysis
A SWOT analysis can be broken down into four key parts, each offering a unique perspective on the organization:
Strengths are the internal factors where the organization shines and stands out from its competitors. They could be things like having a strong brand, a loyal customer base, solid financials, cutting-edge technology, or highly skilled employees.
Weaknesses point to areas where the organization needs to improve to stay competitive. These might include having a weaker brand, high employee turnover, too much debt, inefficient processes, or outdated technology.
Opportunities are external factors that could give the organization an edge. These opportunities can arise from changes in market trends, shifts in demographics, evolving consumer preferences, or new regulations.
Threats are external factors that pose risks to the organization. These may include things like increased competition, rising material costs, economic downturns, shifts in consumer behaviour, or disruptions in the supply chain.
To present a SWOT analysis effectively, analysts often use a four-quadrant table, with each quadrant dedicated to one of the four components. Internal factors, strengths, and weaknesses are usually listed in the top row, while external factors, opportunities, and threats are placed in the bottom row. Strengths and opportunities, which are positive aspects, are positioned on the left side of the table, while weaknesses and threats, which are concerning elements, are placed on the right side.
How to conduct a SWOT analysis
A SWOT analysis is not merely an academic exercise—it’s a practical tool for strategic planning. Here’s a step-by-step guide to conducting a SWOT analysis effectively:
Identify your purpose
It’s crucial to have a clear focus, whether it’s evaluating a new product rollout, assessing a division’s performance, or guiding overall business strategy. Your objective will serve as a guiding star throughout the process.
Collect required resources
Identify the resources and data you’ll need to conduct a thorough analysis. This includes both internal data, such as financial reports and employee feedback, and external data, like market research and industry trends.
Compose insights
With your team in place, initiate a brainstorming session for each of the four SWOT components. Encourage participants to contribute ideas and insights, even if they seem unconventional. Internal factors should be explored for strengths and weaknesses, while external factors should be assessed for opportunities and threats.
Filter outcomes
After the brainstorming session, you will likely have many ideas within each category. The next step is to filter and prioritize these findings. Engage in discussions and debates to determine the most critical strengths, weaknesses, opportunities, and threats facing the organization.
Develop the strategy
Armed with a prioritized list of SWOT elements, it’s time to convert the analysis into a strategic plan. Your analysis team will produce the findings and provide guidance on the original objective. For example, if the analysis was conducted to assess cybersecurity issues like outdated systems, the strategic plan may recommend investing in better tech and checking security regularly or partnering with cybersecurity experts for assistance.
Real-world SWOT analysis examples
To show how useful SWOT analysis is in real life, let’s look at two real-world examples:
Tesla, Inc. effectively employs SWOT analysis in navigating the electric vehicle (EV) sector. Their strengths encompass innovative technology, a robust brand, and global reach, and their challenges include production issues and elevated costs. They find opportunities in the promising EV market and expansion into the energy sector while facing threats from intense competition and evolving regulations. Tesla’s strategic approach, influenced by this analysis, emphasizes innovation, global expansion, diversification into energy solutions, managing competition, and compliance with regulations.
Amazon, the global e-commerce giant, exemplifies how SWOT analysis shapes strategic choices. Its strengths encompass e-commerce dominance and a culture of innovation. Challenges include slim profit margins and counterfeit products. Opportunities are found in expanding markets and global reach, while threats come from intense competition and evolving regulations. Amazon’s strategy revolves around customer-centric innovation, diversification, global expansion, marketplace integrity, competition management, and regulatory compliance. This SWOT-influenced approach ensures that Amazon maintains its leadership, fosters innovation, and adapts to changing market dynamics by leveraging strengths, addressing weaknesses, seizing opportunities, and mitigating threats.
Just like how we use different tools for different tasks, the SWOT analysis isn’t our only option. It’s more like a trusty friend that works alongside other friends in your planning adventure. Through SWOT analysis, you can make smarter decisions, be more creative, and adapt to changes in the world—as you would with good friends by your side.
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This article is written by Chadia Abou Ghazale, a seasoned banking professional with 24 years of experience and who excels in budgeting, sales performance management, data analysis, and resource planning. Beyond banking, she is a dedicated reader of self-development topics and passionate networker. Chadia believes that life’s purpose is the pursuit of knowledge. Her extensive expertise and unwavering enthusiasm are a dynamic combination, driving success in her career and enriching her life’s adventurous journey.
Over the past few years, companies faced volatile business environments all while keeping up with sustainability requirements, workforce and customer behavioral changes, and market trends.Because of the turbulence of the business environment, the role of strategic planning becomes even more essential to the survival and growth of any business.
As John Child defines it, business volatility is “the degree of change which characterizes environmental activities relevant to an organization’s operations.” According to the 2023 Global Trends Brief, these are some of the components that caused disruptions and unpredictabilityin the business environment:
Rising prioritization for mental health and work-life balance
The traditional strategic planning process, according to Jean Dieudonne, strategic planning lead at ANZ, includes a three-to-five-year plan with actionable steps to achieve long-term goals. However, businesses must rethink this to adapt and deal with turbulent times.
One of the leading providers of energy solutions worldwide, bp is currently investing in low-carbon solutions. The 2023 edition of the bp Energy Outlook, as outlined in this year’s annual report, has identified two turbulent factors: the Russia-Ukraine war and the US Inflation Reduction Act. Given the unpredictable nature and potential enduring impact of these events on the trajectory of the national and global energy systems, the organization’s strategic planning process becomes even more essential.
Accordingly, bp proactively monitors the external environment and regularly updates its strategic plans in response to these external signals. They employ scenarios from the World Business Council for Sustainable Development’s “Climate Analysis Reference Approach for Companies in the Energy System” to assess and validate their strategy. This proactive approach enables them to seize opportunities and navigate challenges in turbulent times. The leadership team and board review the strategy, capital allocation, risks, and opportunities, making regular updates as needed. Also, to successfully go through the fast-changing business landscape, they monitor key indicators and metrics, including policy developments, renewables capacity, electric vehicle sales, and low carbon technology costs.
Another company that had to deal withturbulence in the business environment isSaudi Aramco Power Company,which has incorporated risk assessment into its strategic planning process. Projects go one by one through a structured decision process that includes rigorous risk assessments and value assurance evaluations, and each strategic scenario is stress-tested to ensure positive results in any business environment.
Strategic planning will always stay relevant, and the selection process for strategists should be of critical importance. Also, choosing the right resources to strategize and execute plans with is like choosing friends to accompany one in a dynamic environment—an escape room, for instance. Choose those that can be effectively utilized or leveraged for a specific purpose.
