THE UK STRATEGY UNIT AND ITS ROLE IN IMPROVING STRATEGIC CAPABILITY ACROSS GOVERNMENT

1. THE UK STRATEGY UNIT AND ITS ROLE IN IMPROVING STRATEGIC CAPABILITY ACROSS GOVERNMENT Dr Patricia Greer November 2005

2. 2 Contents The UK Prime Minister�s Strategy Unit roles distinctive features outputs, outcomes and impacts emerging clusters of work Strategic Audit and Horizon Scanning Improving Strategic capability across government � the SU survival guide

3. 3 Contents The UK Prime Minister�s Strategy Unit roles distinctive features outputs, outcomes and impacts emerging clusters of work Strategic Audit and Horizon Scanning Improving Strategic capability across government � the SU survival guide

4. 4 The Strategy Unit: origins and reporting line formed in 2002 (but predecessor Units date back to 1998) to: improve the Government�s capacity to address long term and/or cross-cutting strategic issues promote innovation in policy development and the delivery of the Government�s objectives based in the Cabinet Office but reports to the Prime Minister who takes final decisions about work undertaken by the Unit

5. 5 The SU�s work has gone through three phases of evolution

6. 6 Strategy Unit: where we fit in

7. 7 The Strategy Unit: roles to carry out strategic reviews and cross-cutting studies of major policy areas and provide policy advice in accordance with the PM�s policy priorities to work with departments to promote strategic thinking and improve policy making across central government to conduct occasional strategic audits as departments have progressively built their own strategic capability so the work of the SU has increasingly focused on cross-cutting issues, advice to the PM and support for departments

8. 8 The Strategy Unit: work is increasingly organised around five key clusters Public Service Reform

9. 9 The Strategy Unit: these clusters cover the Prime Minister�s domestic policy priorities

10. 10 The Strategy Unit: outputs high level strategic advice to the Prime Minister or other confidential advice to Ministers published �of� the government reports � statements of government policy collectively agreed by ministers published �to� the government reports � statements of options for the future direction of government policy more speculative think pieces and discussion papers to explain emerging issues and challenges individual projects or pieces of work can take from a few days to up to 3 to 4 months

11. 11 The Strategy Unit: Examples of recent impacts Outcomes and impacts resulting from the Unit�s work include : Broadband/ digital strategy: Implementing the digital strategy is a Manifesto commitment. OGC and e-GU are supporting DTI in structuring a programme to implement the strategy Extending direct payments to the elderly (introduction of a system of individual budgets to give older users of public services the option of taking available resources in cash or service provision) � Recommendations published in the Adult Social Care Green Paper in March 2005 Fundamental Legal Aid Review. Report jointly published with DCA in July 2005 setting out proposals to reform the provision of legal aid Schools reform. PMSU/ DfES proposals announced in the Schools White Paper published 2 weeks ago at the end of October 2005 Health choice and contestability work (reform of primary health care). Work with the department forming the basis for forthcoming White paper.

12. 12 The Strategy Unit: distinctive features There are a number of distinctive features to the way the Unit works : the Unit has no day to day responsibilities which means it can focus on the important rather than the urgent. All work is project based with teams of between 2 and 8 people working on particular issues there is an emphasis on analytical rigour and an evidence-based approach, allowing issues to be addressed from first principles the Unit is staffed by a mix of civil servants and non-civil servants. The civil servants come on loan from government departments; the non-civil servants come from the private sector; academia; think tanks; NGO�s; and overseas. In total there are currently around 60-65 staff.

13. 13 The Strategy Unit: backgrounds of SU Staff Whitehall: Cabinet Office, HM Treasury, FCO, DTI, DfES, DH, DEFRA, DWP, MoD, HO, ONS Private Sector: Ford, BT, Microsoft, PwC, KPMG, Bain, McKinsey, BCG, Financial Times Wider Public Sector: FSA, LGA, Ofwat, Metropolitan Police, Prison Service, local government Voluntary Sector: Age Concern, Joseph Rowntree Foundation, Office of Public Management, Kid�s Club, NCVO Think Tanks: IEA, SMF, IPPR Academia: Newcastle University, Sussex University, Oxford University Overseas: World Bank, German Chancellery, US Department of Labor, Province of British Columbia, French National School of Administration, OECD, Australian Department of Defence

14. 14 The Strategy Unit: projects have covered a very broad range of issues e-commerce rural economies the future of the Post Office network criminal assets adoption e.government workforce development trade policy education health transport local government migration & asylum global health joined up government privacy and data sharing modernisation of government loans energy policy sport deprived areas the life chances of disabled people legal aid childcare electronic networks charity law and regulation ethnic minorities & the labour market GM crops correctional services (prisons, probation) the fishing industry London alcohol drugs local government police reform wealth creation, science & innovation higher education countries at risk of instability social mobility social capital life satisfaction personal responsibility an individual behaviour public service reform public sector innovation

15. 15 Contents The UK Prime Minister�s Strategy Unit roles distinctive features outputs, outcomes and impacts emerging clusters of work Strategic Audit and Horizon Scanning Improving Strategic capability across government � the SU survival guide

16. 16 The Strategy Unit: Strategic Audit and horizon scanning The aims of the Unit�s Strategic Audit and horizon scanning functions are: to take stock of the UK�s overall performance e.g. in relation to other countries to review progress towards the Government�s long term objectives, including performance in relation to particular population groups to identify future challenges and opportunities facing the UK and the UK Government to consider whether there were any potential gaps in current strategies and policies, given current performance and future challenges and opportunities to inform current and future SU work. This has culminated in published Strategic Audit reports in 2003 and 2005 (available at www.strategy.gov.uk)

17. 17 Contents The UK Prime Minister�s Strategy Unit roles distinctive features outputs, outcomes and impacts emerging clusters of work Strategic Audit and Horizon Scanning Improving Strategic capability across government � the SU survival guide

18. 18 The Strategy Unit : building the strategic capability of departments There are five dimensions to the Unit�s centre of excellence role, intended to help strengthen departments� strategic capacity : joint working with departments co-ordinating a Strategy Forum and Strategy Network to share experience and best practice providing �critical friends� or coaches with experience in strategy work to support departmental strategy work development of a Strategy Survival Guide setting out best practice in strategy work secondments in and out of the Strategy Unit

19. 19 The strategy survival guide sets out a �map� for how to go about undertaking strategy work

20. 20 The guide also provides a �tool kit� to support strategic work

21. 21 Many tools and approaches are available

22. 22 Some examples of tools and frameworks Stakeholder maps Issue trees Implementation planning This is just a taster � the Strategy Survival Guide sets out these and many more tools and frameworks in more detail

23. 23 What is a stakeholder map?

24. 24 What is an issue tree?

25. 25 Issue trees in the childcare project

26. 26 Institutional change There are a number of common criteria that should be assessed, whether designing a new institution or changing an existing institution to deliver a new strategy, including: Role and remit Nature and fit with existing system Accountability, performance measures and reporting arrangements Organisation and governance Capabilities and employees Capacity requirements Incentives and motivation Infrastructure requirements Funding requirements, sources and inspection What are the implications for the strategic direction? What are the trade-offs between different approaches?

27. 27 Our Strategy Survival Guide provides further detail...

28. 28 Dr Patricia Greer, Deputy Director Patricia.Greer@Cabinet-Office.x.gsi.gov.uk Tel. 44 20 7276 1431