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Democratizing strategy planning refers to the process of involving various stakeholders of all organizational levels in the strategy formulation process. In the traditional approach, strategy planning is a top-down process formulated by selected stakeholders like the senior management and key decision makers. So, to make the process more inclusive and participatory, democratizing strategy planning comes into account.
One of the main advantages of democratizing strategy planning is that it increases employee engagement. Thomas, K. W. (2009) discussed in his paper “Intrinsic Motivation at Work: What drives employee engagement” that when employees feel that their voice is heard within the organization, they are more likely to feel connected and invested in the organizational success, which increases their motivation, commitment, and job satisfaction, and that means a lot for them as they feel more valued in the organization.
Another advantage of democratizing strategy planning is that it enhances ownership and accountability, which will be reflected in improved employee engagement, as employees who participate in the strategy planning feel a stronger sense of ownership and responsibility, which leads to extra accountability and willingness to go the extra mile in achieving the organizational objectives as per the psychological ownership theory, which emphasizes on the role of psychological ownership in influencing employee attitude and behavior which lead them to be more engaged, motivated and committed to their organization.
To implement democratized strategy planning, having and securing the leadership buy-in is crucial to its success, so it is necessary to present the benefits and potential of increasing employee engagement and fostering innovation in the organization.
After getting leadership buy-in, we need to define a clear scope of where employee inputs would be more valuable, which is recommended to be initiative-specific in the beginning to avoid any potential analysis paralysis. In addition, it is vital to develop a precise feedback mechanism to capture different stakeholders’ diverse perspectives and ideas and recognize and reward participation.
This process will take time to be implemented correctly without any issues, so it is essential to mention that continuous improvement is critical to reach a practical approach. A great starting point is attending the Certified Strategy and Business Planning Professional course by The KPI Institute. Learn more about it and secure your slot here.
Government organizations are on an ongoing journey towards excellence, continually developing performance measurement methodologies and incorporating sustainability into their major operations. This commitment to systematic improvement includes investing in professional development and training and ensuring that resources are distributed strategically to promote advancements in the public sector. How can these be accomplished?
In an interview with Performance Magazine, Turki Mohammad Alderaan, Technical Vocational Training Corporation (TVTC) Trainer and Director of the Risk Department at Al-Jouf University in Saudi Arabia, shares his insights on how organizations can adapt to emerging trends, stay updated on the latest strategic planning practices and performance management frameworks, and prepare government talent and citizens for the future.
How important is strategy planning and performance management in your government agency, which is responsible for regulating and providing technical and vocational training in Saudi Arabia?
The TVTC supervises more than 283 organizations that belong to it and more than 1,100 training and development consulting private sector. To regulate this enormous number, we tend to involve the stakeholders’ leaders early to achieve their strategic goals. In 2021, the TVTC was ranked 9th according to knowledge indicators from The Mohammed bin Rashid Al Maktoum Knowledge Foundation ( MBRF).
Could you provide us with an example of a successful initiative in your organization that has brought great value to the quality or efficiency of business planning and managing performance?
“Hidden Explorer” is a significant initiative that ensures organizations’ services meet regulations and are monitored for growth. A recent report measured 14 essential services offered by 60 institutions, showing an average improvement of 3.8 out of 5 compared to the previous year. This initiative enhances business planning efficiency and ensures continuous growth.
How does your organization adapt to trends and stay updated with the latest strategy planning practices and performance management frameworks?
Our organization uses statistics to measure performance, implement initiatives, and stay on track toward strategic and operational goals. It also uses dashboards to monitor tasks at all administrative levels, facilitating corrective measures and adaptations.
Trends
What are the key trends that have shaped the public sector in recent years?
The Kingdom of Saudi Arabia (KSA) launched the National Transformation Program in 2016 to support government performance, digital transformation, private sector development, economic partnerships, community development, and resource sustainability. The program aims for a 92% transformation maturity rate by 2025.
What strategic approach would you advise governmental entities to take in order to counteract increased volatility and unpredictability?
Assuming that the future will be similar in terms of strategic planning is one of the most common mistakes, as technical management tools often require development. The optimal approach for the government sector is scenario planning, which focuses on identifying possibilities and their impact on operations, as well as potential scenarios that ensure goal achievement.
Per the World Economic Forum’s “Future of Jobs Report 2023,” technology and digitalization are driving the decline of clerical and secretarial roles. What is the government’s role in developing future job skills for citizens?
The KSA’s Ministry of Human Resources adopted the National Transformation Program, sponsored by Vision 2030, to develop a human capacity development program which set 12 main goals and linked them to 24 indicators and 69 initiatives. The program aims for global competition by developing essential skills and knowledge for human resource development.
The public sector faces potential talent loss due to changing compensation and work setup preferences, as stated in a recent Forbes article. What can governments do to attract and retain talent?
Focusing on attracting talents rather than developing them from within can be a future problem. Therefore, some governments, such as Saudi Arabia and Singapore, have begun to provide training and development grants. Since the launch of the National Transformation Program, government agencies have secured 550,000 jobs between 2016 and 2020.
What role will governments play in the artificial intelligence (AI) revolution?
Governments must adopt AI technologies for digital transformation and ambitious decisions. Saudi Arabia adopted the “Global Summit on Artificial Intelligence,” and the NEOM CEO confirmed its importance. Reliant on AI, NEOM’s “LINE” project—a city that runs on 100% renewable energy— is the future. Governments must be forward-looking and ambitious in their plans to pursue this revolution.
Strategy and Performance Practices
What would you advise multilateral institutions to reach effectiveness and alignment in strategy planning and implementation?
Strategic planning enhances coordination and cohesion within an organization, providing clarity on goals and objectives. It is complex in multilateral environments and requires pre-analysis and consultation with all parties. A strategic planning framework ensures standardization and diversification while shaping objectives and indicators using a logical framework for results-based management.
What are the key success factors for governments to build consistency in strategy and performance management?
A comprehensive vision ensures the integration of goals and interests across all sectors, limiting capabilities and linking plans to strategic plans. A results-based management approach helps all sectors achieve a common vision perfectly, leading to a cohesive and effective organization.
What are the most common pitfalls in strategy and performance management in governmental institutions? What can be learned from it?
The performance measurement management process fails due to the lack of correct and accurate selection of performance measures. Many leaders believe that performance measurement is a simple and clear process, and this is a false belief. It requires leaders to be aware of the consequences of the performance measures they choose. There is a “dark side” to all measures. One of the crucial challenges government institutions face involves activating an integrated performance measurement department that is supported by competencies and adopting best practices.
What are the five characteristics of a high-performance government?
The following characteristics should be systematic to ensure a high-performance government:
Digital transformation (e-government)
Activating the integrated system for job performance planning and management
Continuous development of performance measurement methodologies in government organizations
Considering institutional sustainability in all activities of the organization
Allocating the necessary resources for continuous professional development and training
What is the key performance management tool used in your organization that drives decision-making? (Is it the strategy plan, the strategy map, the balanced scorecard, or an executive dashboard?)
All of what has been mentioned must be relied upon, but each in its own phase. As for the dashboard, it is the one that supports the speed of the decision-making process, as notes appear quickly.
If you could convey the essence of government performance in three indicators, what would those be?
The percentage of digital transformation in the services provided
The effectiveness of the performance measurement methodology
The number of development and training hours is based on each employee’s systematic criteria
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Turki Mohammad Alderaan is an organizational development expert in multiple governmental sectors, a leadership and strategy professional, an executive performance mentor, and a performance design and measurement specialist. To learn more about his professional credentials and perspectives in the field, you can connect with him on LinkedIn.
Raed Abdullah Alsuhaibani, General Manager of Strategic Performance Management at the Ministry of Human Resource and Social Development (MHRSD) in Saudi Arabia, draws on his 17 years of experience in both the private and public sectors, with some of these years dedicated to navigating the ever-shifting currents of strategy and performance management within government. He describes himself as an ambitious and results-oriented individual with a track record in strategy execution, performance management, and business support.
In this interview with Performance Magazine, Alsuhaibani shares his insights and experiences in the public sector, where he steers the ship of strategy execution and alignment in accordance with Saudi Vision 2030.
Would you tell us more about your educational and professional background? How did your previous experiences lead you to your current position?
I am an Industrial Engineer with a bachelor’s degree from King Saud University and a master’s degree in Business Administration from Eastern Michigan University, United States. Working in the private sector, especially in one of the model environments, Advanced Electronics Company (now Saudi Arabian Military Industries or SAMI), and two other major companies, namely AlRajhi Bank and Saudi Arabia’s Basic Industries Corporation (SABIC), allowed me to explore and discover many business aspects that enhanced my skills and experience. In 2021, I decided it was time to utilize my experiences and participate in achieving our ambitious Vision 2030 through my current position.
What are your main responsibilities and goals in your current role?
My current responsibilities involve overseeing the execution of the ministry’s strategies, with the primary goal of maximizing the kingdom’s economic and societal value through alignment and synergy.
Please take us through your daily job routine. Could you describe in detail your activities and work hours? You may specify certain areas of your job, such as your work arrangement (remote, on-site, or hybrid) and the stakeholders you frequently contact or meet with.
My daily job routine consists of measuring and managing the performance of our strategy execution and working on alignment with all stakeholders. Being responsible for performance management, we commonly work on enhancing measures and solving data-related issues. Working in a large organization like the MHRSD allows one to align and work with a large community of stakeholders within and outside of the ministry. Thus, this takes a big chunk of the time.
Do you think that strategy and performance management in the public sector is different from that in the private sector? How so?
One key distinction between strategy and performance management in these sectors lies in their expected outcomes. The private sector is primarily driven by maximizing shareholder value, typically marked by measuring profit or return on investment (ROI). On the other hand, the public sector places a greater emphasis on working with a diverse range of stakeholders, i.e. the general public as well as companies in the private sector. However, if we talk about adopting methodologies and frameworks to manage performance, I see that the gap is minimal. I was amazed by the significant transformation in the public sector when I joined first in 2021. So, I believe that in some public organizations, the practices are generally more mature than in private ones.
What are the main achievements you are proud of thus far during your time working in strategy and performance management in the public sector?
I have had the privilege of collaborating with amazing teams that possess diverse skill sets at different levels. This collaboration has been instrumental in achieving our goals. Some of our main accomplishments include establishing effective strategy and performance management practices within the MHRSD, playing a facilitative role in developing various subsidiary strategies while offering technical expertise, and garnering top national awards for excellence in strategy, performance, and project management office (PMO) practices.
What are the main challenges that you face working in strategy and performance management in the public sector? How do you overcome such challenges?
I believe that alignment and getting all stakeholders on the same page is challenging, especially in the public sector. Obtaining buy-in from businesses can also be challenging, especially in the context of performance. To overcome those challenges, I think improving communication is essential and focusing on delivering the right message at the right time.
For the future of your career, do you intend to keep on working in the public sector, switch to the private sector, or does the sector not really matter to you? Why?
Given the rapid, significant changes happening in the public sector as part of Vision 2030, I think that working in the public sector is much better. Being a part of these remarkable and historic changes is a great opportunity. There will be a better chance for a person to shine and make a difference.
If someone is looking to work in strategy and performance management in the public sector one day, what skills, knowledge and experience would you advise them to acquire?
Any person who wants to work in strategy and performance management in the public sector should focus on communication skills, problem-solving abilities, and persistence.
Learn more about Alsuhaibani’s perspectives on strategy and performance management in the forthcoming government-themed issue of Performance Magazine – Print Edition. Stay updated by subscribing toTKI’s LinkedIn page!
Harry Patria, the CEO of Patria & Co., is a data strategist and lecturer who founded a company that serves over 100 corporate clients, 200 analytical platforms, and 500 professionals. He is a Data Hackathon winner in the UK and graduated with distinction from his master’s degree to a PhD program with a fully-funded scholarship. Harry is a subject matter expert in several fields.
The KPI Institute held a webinar titled “2023 Business Pulse: 5 Trends Impacting Strategy and Performance Management” in April 2023. The event was organized for executives and professionals in strategy and performance management who want to position their companies for success in today’s business environment. The discussion is based on the “2023 Global Trends Brief – Impact on Strategy and Performance Management Practices” report, which can be downloaded for free here.
2023 Global Trends Brief is a secondary research analysis aiming to outline the most important factors affecting the business environment and how they shape strategy and performance management practices. Executives and Strategy Managers are pressured to adopt management tools and processes to create resilient and agile organizations. Our research reviewed 95 reports and articles from reputable research and consultancy companies as of March 2023. These sources cover various factors shaping markets, such as geopolitical influences, global economic tendencies, society, technology, and climate. Based on our findings, five key driving factors of change for organizations have been identified and presented in the report to set the general operating context for most companies in 2023.
Government organizations are on an ongoing journey towards excellence, continually developing performance measurement methodologies and incorporating sustainability into their major operations. This commitment to systematic improvement includes investing in professional development and training and ensuring that resources are distributed strategically to promote advancements in the public sector. How can these be accomplished?
