How to nail your business planning.
- truthaboutlocalgov
- May 3
- 5 min read
As we move through LGR and the increasing fiscal challenges the sector is facing, there is a lot of focus being spent on transformation and change programs. As part of these processes there will be a renewed focus on business planning across individual functions and across entire councils. Local Government is a business, a complex, multi-faceted business that does aspire to generate revenue from its portfolio, but also wishes to run its core services and those services it delivers on the residents’ behalf in an efficient and cost effective manner.
In order to achieve this we have to make sure that our business planning and the process that goes into creating them are bullet proof. Sometimes the problems that I have witnessed in local government, is when those in leadership roles don’t view the local authority as a business and some of the operational planning (which covers short term decision making) and strategic planning (which covers long term development) have not ended up delivering the best outcomes for the residents.
"Customer service shouldn't just be a department, it should be the entire company." – Tony Hsieh
We must always keep the residents in our mind, as they are the customers of the local authority. A customer that doesn’t massively understand our business at times, but a customer none the less.
Below are different models and frameworks that you can utilise at different stages of planning to help you achieve the results that you are looking to deliver.
Everything is connected. Failure to grasp that can be lethal.
The interconnectivity of local government is beautiful. Nothing operates in isolation and thus there has to be a cohesion in any strategy or transformation program for sustained and success across the entire local authority. Due to the time pressures and sheer size of change during LGR and transformation programs caused by financial pressures, there is the very real risk of transformation and change not becoming imbedded and sustained across the whole organisation.
The way to ensure that doesn’t happen is ensuring that the following elements are all considered in the change program, as confirmed by the McKinsey Group:
Strategy – do we have an effective planning process?
Structure – are departments interacting an effective manner?
Style – how is the local authority going abouts its work?
Staff – are we recruiting the right people and developing staff once they joined?
Skills – do we have the right skills within the council?
Systems – do we have the right procedures, processes and routines to achieve our goals?
Shared Values – do we have shared values and this is demonstrated by our behaviour?
The power and impact on your progress when you get these elements right, as part of an interconnected organisation wide strategy is beyond exciting. I don’t love local government for what it is, but for the potential of what it could be.
Identify key stages in the business planning process.
It is imperative that you have a structured framework for creating comprehensive and cohesive plans. The seven-stage approach developed by Johnson and Scholes ensures that the planning process is thorough and all necessary factors for successful execution are considered.
Local authorities can utilise this framework to create key stages in their planning processes by systematically addressing each stage. For instance, they can start by setting clear objectives for community development, followed by an in-depth analysis of local needs and resources. Generating and evaluating strategic options allows them to consider various development scenarios, ensuring the chosen plan is feasible and acceptable to stakeholders.
Implementing the plan with regular reviews ensures that the strategy remains relevant and effective, adapting to any changes in the local environment. This methodical approach helps local authorities create well-rounded and effective plans that meet the needs of their communities.
When you are going through the several stages please remember to specify the goals that you need to achieve, in order to realise your vision. These goals need to be SMART – Specific, Measurable, Achievable, Realistic and Timely. Furthermore, you need to ensure that you have a process in place for measuring the progress of these objectives. You also need to ensure you identify who needs to be involved in achieving these objectives. The responsible officer & member need to specify tasks that individuals have to complete, monitor their performance and address any shortfalls in actual against planned performance.
Furthermore, this senior individual needs to impress on the team the importance of not waiting until you have achieved the vision and encourage the celebration of small successes, in order to maintain momentum whilst en-route to your end goal. Take the time to recognise individual people’s contributions. It is consistent communicated praise and gratitude that influences and sustains positive behaviour in the long term, which is the bed rock of any change program.
Is your service destined for success?
Whether you are working in a LATCO and selling your services, or whether you are looking at commissioning within SEND or children’s social services, the Marketing Mix, that Bitner and Bernard developed is a fantastic planning tool, to decide the choices the local authority needs to take when bringing a service to the residents and the community they serve.
Ask yourself the following questions to see if your service is destined to be successful.
Product: Is the council producing services that residents want?
Place: Can residents access the services when they need it?
Price: Has the council set a realistic value on the service being offered?
Promotion: Is the council delivering the right message to residents about the service?
People: Does the council have the right mix of skills to deliver a quality service?
Processes: Are the procedures, processes and routines used within the organisation efficient and effective?
Physical Evidence: Do all residents and organisations in the supply chain of the council, have the desired image of the council?
When you are analysing the answers, it is essential to look at each one as inter dependant of the others. A service can be something that residents want, but if it is too expensive it won’t be effective.
Furthermore, there is a need to ensure that sufficient market research has been undertaken to ensure that the foundation upon which the service is built is solid. Is this service actually what residents want and need? How will you strike the right balance between demand and supply.
It is also imperative that you look at your people and your processes, as even the right service offering will fail, without the right team and infrastructure to realise the service’s potential. It is one thing to know what you want, it is another thing to deliver it!
Finally, it is essential to keep asking questions about the seven factors and make changes where necessary. Keep tinkering until you have found the perfect service offering.
In conclusion, I hope that the three models explored provide valuable insights into how you can enhancing business planning, as part of your transformation and change programs. I firmly believe that by incorporating these systems and frameworks, service delivery can be optimised, leading to more effective and efficient operations. Full steam ahead!
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