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.
Some say when you fail to plan, then you plan to fail. This is the reason why you should establish a solid strategic planning process for your company. But strategic planning won’t succeed without the right data. Data gathering may sound simple, but you should not underestimate it. Why does it matter and how should you gather your company’s performance data?
Performance monitoring is a systematic process taken by the management in order to track the company’s performance and drive results and continuous growth. Performance monitoring could also send signals to top management which part of their business operations are failing or working below expectancy. This process plays an important part in the strategic planning initiative.
In order to successfully monitor company performance, the management should be able to gather corporate performance data swimmingly.
Data Gathering
Data gathering in general should start with KPI activation. This KPI activation consists of four different steps: meeting with the data custodians, securing the activation budget, designing the data gathering template, and communicating the template to the data custodians. KPI activation is a step that allows management to develop infrastructure for capturing and managing data.
After KPI activation is done, the next step is the ongoing data gathering process. This is where the management or the performance management team sends the KPI data gathering notification to the KPI custodians and receives the data relevant to performance monitoring. For this step, it is imperative for the performance management team to gathers and centralize the relevant data before checking the data quality.
After sending the KPI data gathering notification, the management or the performance management team could also send the KPI custodians a reminder via email to make sure the data custodians prepare the data needed.
Once the relevant data is gathered, the performance team should check the quality of the data before calculating the KPI results and analyzing the data. The quality of the data should be checked based on multiple dimensions.The main dimensions are Accuracy, Completeness, Consistency, Conformity, Timeliness, and Uniqueness. In reality, the performance management team may find the relevant data does not meet those requirements/quality. When the data does not meet a certain quality, it is preferred for the top management or the performance management team to clarify the data to the data custodians.
Data analysis is a set of processes of examining, transforming, and modeling data to generate relevant business insights that can be used in the decision-making process. In analyzing KPI results, the performance team should use analytics.
The final step of data gathering is to generate a performance report. In this phase, data custodians, the report generator, and the strategy performance team are collectively responsible for compiling all performance results, business insights, and analysis in a certain format for the decision-makers.
In conclusion, a solid data gathering enables decision-makers to set the right company’s objectives for the next period. A solid data-gathering process will help the performance management team provide the performance report required by the top management faster, making the top management adjust the company’s strategy and objectives properly. If you want to learn more about how you could establish a solid data gathering process, sign up for The KPI Institute’s Certified KPI Professional and Practitioner course.
