WHAT IS STRATEGIC PLANNING? |
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Strategic planning is a systematic way to manage change and build a community-wide consensus and shared vision for a better economic future. It is a creative process to identify critical issues and agree on credible goals, objectives and strategies which, when implemented, will address those issues. |
Strategic planning is also a powerful technique for bringing business leaders and City Hall officials together to create private-public partnerships that will improve the city’s business climate and competitive position.
Strategic planning is a complex and selective method to influence a community’s economic future. It is complex because it includes the initial review of local economic conditions, their specific interactions within the community, and external forces that affect the local economy. On the other hand, the changes to be achieved are intended to influence the entire local economy through particular, selective actions. This represents the selective feature of the strategic planning process. Since the capacity and resources available in the community are always limited, the strategic planning process must continuously pick and choose the issues, objectives, and actions that are most needed, reliable, and feasible.
Strategic planning combines long-term perspectives with short-term actions. The process takes into account the long-term future in setting out its vision and broad goals. At the same time, current economic, social and political changes, which occur rapidly and are difficult to predict, must be addressed. Therefore, the challenge and orientation of the planning process is to create a rational basis for reaching consensus on detailed and specific objectives and strategies that can be implemented within three to five years, the life span of most economic development strategic plans.
In summary, strategic planning is not a new or mysterious concept. It is distinguished from other forms of planning primarily by the proactive work program that is an integral part of the process. Although in the present context, it is associated specifically with economic development, the nature of the process lends itself very well to other objectives. Indeed, many smaller municipalities find strategic planning for economic development and planning for social development almost indistinguishable.
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Most US states and cities have found strategic planning beneficial. For example, the state of Michigan undertook a statewide strategic planning exercise, which resulted in publication of The Path to Prosperity, which became the blueprint for restructuring of the entire state economy. The state then incorporated this process into its program to encourage municipalities to launch their own development initiatives. The Berman Group managed successful strategic planning processes in large and small Michigan cities, including Kalamazoo, Pontiac, Hamtramck, and Highland Park, as well as Hollywood, Florida, Toledo, Ohio; and New Orleans, Louisiana. |
Central planning has had a long and unsuccessful history in much of Central and Eastern Europe. However, local economic development strategic planning, managed by a commission of private citizens and public officials, is a new concept for Ukrainian cities. It is a way for cities to assume responsibility for their economic future. This process also creates a sense of partnership between the public and private sector, which can become a permanent part of the municipality’s decision-making process.
Community-based strategic planning
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Community-based strategic planning recognizes that the people of the community are the source of empowerment. |
Local leaders, government and private, must reach consensus on the preferred economic future for their city and then cooperate in doing what is necessary and practical to create that future. The strategic plan must, in the final analysis, belong to the entire community.
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Community based strategic planning has two meanings:
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First, economic development will focus on local needs. Hence, development opportunities will be perceived from the community’s point of view, and developmental activities will be generated from within the community by its leaders. Although external forces may influence or limit local development, they will not be the primary determinants of community actions.
Second, local economic development will identify and stimulate the utilization of the community’s own resources, while taking full advantage of regional, state and international resources, especially financial, which are almost always required for successful implementation. Therefore, local economic development programs maximize the use of the community’s human, organizational, infrastructure and other resources, and attach great importance to strengthening the capacity of local institutions.
Finally, community based strategic planning has implications for the role of facilitators.
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Facilitator – A consultant who assists project development and implementation. |
If the plan is to be truly community based, the consultant’s role must be limited to moderating negotiations and facilitating the discussions of community leaders and the whole planning process. Responsibility for selecting the issues that the strategic plan will deal with and for how the plan’s objectives will be achieved must be made by the community leaders. The consultant’s responsibility is to help them, not to suggest what they should do.
The use of consultants to facilitate strategic planning
Municipalities engaging in the strategic planning process may wish to engage the services of a consultant to help them through the process. The need for a consultant may arise because of several factors.
First, in most communities, there is no economic development professional working at City Hall.
Second, the process benefits from the participation of a professional who is not a member of the community and can therefore be completely objective in his perceptions of the community.
Third, managing the strategic planning process requires both knowledge of economic development and experience and skills in facilitating group processes, such as consensus building and decision-making.
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The consultant is an expert in certain field, who gives professional advice and helps facilitate an action or a process. |
As an expert, a consultant will bring to the process broad experience in economic development and strategic planning.
As a facilitator, a consultant will encourage the consensus-building process without controlling it. He or she must enjoy the respect of community leaders and be accepted as a valued advisor and guide, but cannot become so involved as to lose objectivity and credibility.
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What city gets when attracting a consultant?
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Where does the community find its consultant and when should the search begin? In developed countries, there are many consulting firms that have special knowledge and experience in this field. In Ukraine, the market for consulting services for local government is not developed yet. There are some institutions and projects here that can offer strategic planning services. Consultants of ERUM projects concentrate on economic development strategic planning, in contrast to strategic planning for general community development. Economic development strategic plans will be developed in a number of Ukrainian cities in cooperation with Berman Group and local specialists from the cities. Teams of Ukrainian consultants will develop expertise in the process of economic development strategic planning in the cities. Ukrainian cities will have an opportunity to get services from those consultants, who gained this experience.
How will the consultant be involved in the process? What is his job description?
At the very least, the consultant will do the following:
- Participate in identifying people for the Strategic Development Commission.
- Conduct an orientation session at the start of the process.
- Organize the Commission into sub-commissions and identify external resources to assist them.
- Assist in accumulating the information base and analyzing the data necessary for identifying critical issues and defining goals, objectives, and strategies.
- Organize and participate in all Commission, task force, and public meetings.
- Review and edit all Commission and sub-commission reports and assist in writing the final version of the strategic plan.
- Identify opportunities for positive media exposure and help plan the public meetings to encourage maximum attendance and community awareness of what the strategic planning project is about.
- Provide support to the members of the Commission, through a very challenging process, from beginning to end.
Consensus building and creation of shared vision of economic development are the features of successful strategic planning.
The consultant is a key player and facilitator in the process. Finding and recruiting a professional consultant who has all necessary knowledge and skills is one of the success factors.