Development of strategy metodology approach l. milanovic

1. DEVELOPMENT OF STRATEGY
–METHODOLOGY APPROACH
International Conference: Strategy Planning Process at Local Level
Vinnytisa, September 6, 2013

2. 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

3. 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

4. Partnership principle
Main phases of strategy planning process:
1. DEVELOPMENT
 Preparatory part
 Strategic platform
 Operational part
2. IMPLEMENTATION
3. MONITORING
4. EVALUATION
• Participative approach: collective process with involvement of authorities,
social partners and organizations from civil society.
PARTNERSHIP

7. 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

8. 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

9. SWOT example
Strengths
 Specialist expertise
 A new innovative product
 Quality procedure
 Location
Weaknesses
 Lack of marketing expertise
 Poor quality of services
 Damage reputation
Opportunities
 Internet sale
 Mergers, joint ventures or
strategic alliances
 New markets
Threats
 New competitor
 Price wars
 Taxation

10. PEST example
Political Economic Social Technological
OPPORTUNITIES
 Tax policy
 Employment
laws
 Trade tariffs
THREATS
 Political
stability
OPPORTUINITES
 Inflation rate
 Exchange
rates
THREATS
 Price war at
market
 New
competitor
OPPROTUNITIES
 Corporative
responsibility
THREATS
 Career
attitudes
OPPORTUNITES
 Automation
THREATS
 Competitor
R&D activity

11. 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

12. 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
DEVELOPMENT
ECONOMIC
DEVELOPMENT
INFRASTUCUTRE
DEVELOPMENT
SOCIAL DEVELOPMENT SPATIAL PLANNING
ADVANCE GOVERNANCE
SYSTEM
MODERN REGIONAL
CENTRE
NEW ECONOMIC
BASIS FOR CITY
PROGRESS –
MODERN REGIONAL
CENTRE
HIGH QUALITY PUBLIC
SERVICE.
MODERN CITY LIFE
SUPPORT SYSTEMS
MODERN REGIONAL
CENTRE
ADEQUATE HEALTH CARE
MODERN REGIONAL
CENTRE
CHILDREN FRENDLY CITY.
ROBUST COMMUNITY
CARING FOR EVERYONE
COMFORTBLE AND
INTERESTING CITY
MODERN REGIONAL
CENTRE
BRIGHT AND DIVERSE
CULTURAL LIFE
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 Strategy for spatial
development (transport,
economic and industry,
public spaces, landscape and
ecology)
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 Sustainability (smart growth
within city limits,
redeveloping existing
locations, stimulating public
transport and bikes use,
pedestrian friendly public
space network, and clean
industries)
Public services Workforce Communal services Culture Creativity (cultural, tourism,
sport and educational
events, new city image with
development impulse,
regular ongoing activities)
Regional and international
cooperation (EU
integration process at local
level)
Private investment Social cohesion (inclusive
society)
Knowledge and business
(business locations and
economic developments,
broadband infrastructure,
ICT use, university)

13. 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

14. 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.

15. 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

16. 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

17. Sofia – example of goals
Type Item
 Economics goals
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

18. 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

19. Process SEA
PEST SWOT
Strategic focusing
Strategic priority 3Strategic priority 2Strategic priority 1
CITY DEVELOPMENT STRATEGY
Sector focusing
Economic
development
Social
development
Environment
Programing
Indicators
Strategycreation
Strategyimplementation

20. Strategy implementation process
Development
Implementation
Monitoring
Evaluation

21. Important!
Leadership
Good and
motivated
team
Partnership
with
stakeholders
Analyze of
data and
information
Logical and
pragmatic
thinking

22. Thank you!
Institute of Urban Development
Milanovic Ljubica
milanovic@vmr.gov.ua