DEVELOPMENT OF STRATEGY
–METHODOLOGY APPROACH
International 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 EUs priorities for support
Country Development Strategy
Regional strategy, sectorial strategies and
programs
City integrated development strategy
and plans
Partnership principle
Main phases of strategy planning process:
1. DEVELOPMENT
 Preparatory part
 Strategic platform
 Operational part
PARTNERSHIP
2. IMPLEMENTATION
3. MONITORING
4. EVALUATION
• Participative approach: collective process with involvement of authorities,
social partners and organizations from civil society.
Strategy Development: Preparatory phase
Steps
Results
1. Initiating the planning process
Formal 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 stakeholders
Competent and interested local actors
identified
4. Creating an initial partnerships and Local development partnerships (forum
launching of the process
or focus groups) established
Strategy Development: Strategic platform
Steps
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 external
factors
SWOT and PEST
3. Strategic focus with key principles
Strategy matrix
4. Creation of development vision and strategic goals Vision and strategic priorities
(priorities)
established
5. Harmonization
Alignment 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
Weaknesses
Specialist expertise
A new innovative product
Quality procedure
Location
 Lack of marketing expertise
 Poor quality of services
 Damage reputation
Opportunities
Threats
 Internet sale
 Mergers, joint ventures or
strategic alliances
 New markets
 New competitor
 Price wars
 Taxation
PEST example
Political
Economic
OPPORTUINITES
OPPORTUNITIES
 Inflation rate
 Tax policy
 Exchange
 Employment
rates
laws
 Trade tariffs
THREATS
 Price war at
THREATS
market
 Political
 New
stability
competitor
Social
Technological
OPPROTUNITIES
OPPORTUNITES
 Corporative
 Automation
responsibility
THREATS
 Career
attitudes
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
 ECONOMIC
 INFRASTUCUTRE
 SOCIAL DEVELOPMENT
 SPATIAL PLANNING
DEVELOPMENT
DEVELOPMENT
DEVELOPMENT
 ADVANCE GOVERNANCE
 NEW ECONOMIC
 HIGH QUALITY PUBLIC
 ADEQUATE HEALTH CARE
 COMFORTBLE AND
SYSTEM
BASIS FOR CITY
SERVICE.
INTERESTING CITY
 MODERN REGIONAL
PROGRESS –
CENTRE
 MODERN REGIONAL
 MODERN CITY LIFE
 MODERN REGIONAL
CENTRE
 MODERN REGIONAL
SUPPORT SYSTEMS
CENTRE
 CHILDREN FRENDLY CITY.
CENTRE
 MODERN REGIONAL
 BRIGHT AND DIVERSE
 ROBUST COMMUNITY
CENTRE
CULTURAL LIFE
CARING FOR EVERYONE
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
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
Public services
Workforce
Communal services
Culture
Regional and international
cooperation (EU
integration process at local
level)
Private investment
Social cohesion (inclusive
society)
Strategy for spatial
development (transport,
economic and industry,
public spaces, landscape and
ecology)
Sustainability (smart growth
within city limits,
redeveloping existing
locations, stimulating public
transport and bikes use,
pedestrian friendly public
space network, and clean
industries)
Creativity (cultural, tourism,
sport and educational
events, new city image with
development impulse,
regular ongoing activities)
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
 Economics goals
Item
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
Process
SEA
PEST
SWOT
Strategy creation
CITY DEVELOPMENT STRATEGY
Strategic priority 1
Strategic priority 2
Strategic priority 3
Sector focusing
Economic
development
Social
development
Programing
Indicators
Environment
Strategy implementation
Strategic focusing
Strategy implementation process
Development
Evaluation
Implementation
Monitoring
Important!
Leadership
Logical and
pragmatic
thinking
Analyze of
data and
information
Good and
motivated
team
Partnership
with
stakeholders
Thank you!
Institute of Urban Development
Milanovic Ljubica
[email protected]