Strategic planning

STRATEGIC PLANNING IN LITHUANIA

Strategic planning system in Lithuania was introduced in 1999. Public expenditure management process follows the principles of strategic planning and program budgeting across all public institutions. Financial resources are allocated according to priorities (government and ministry level). Each year ministries and Government agencies prepare the strategic action plans where they state the mission; strategic goals; major new reforms; programme goals; results to be achieved and financial resources needed. The strategic plans are approved by Government and published to the society. Institutions report on the progress achieved against planned targets.

Ministry Strategic Planning Process

Lithuania's efforts to implement strategic planning and improve its decision-making system have received international recognition and are being looked to as a model for other countries. This is clearly indicated in the recent World Bank report “Public Sector Capacity in the EU 8 Report on Strategic Planning and Policy Management in Lithuania and Latvia”.

The main steps of Lithuanian strategic planning system reform

1999-2002: implementation of strategic planning as a tool to manage finance and results
1999 – pilot projects in 5 ministries
2000 and later – budgeting process follows the principles of strategic planning and program budgeting across all public institutions (appropriations managers)
1999-2001: Institutional changes
1999 – establishment of Cabinet Committee system
1999 - establishment of Sunset and Sunrise Commissions
2003-2004: implementation of impact assessment as an aid to decision-making process
before 2003 – positive and negative impacts of proposals submitted to the Strategic Planning Committee, EU legislation, concept papers
2003 onwards – impact of all Government proposals assessed following the recommendations of the impact assessment manual

Institutionalisation of strategic planning

Strategic planning as a planning and management tool is institutionalised in the following documents: 

Law on Government 
Law on budget
Procedures for the preparation and implementation of state and local government budgets
Annual budget formation calendar
Strategic planning manual
Cabinet Strategic Planning Committee established and functioning

Main accomplishments

Strategic planning manual approved in 2000 (revised in 2002 and 2004 and 2007), obligatory for all appropriation managers and recommended to municipalities
Ministry and Government Agency strategic activity plans approved by the Government, published (on the Internet) and available to society
Reporting requirements approved in 2002; institutions report on the progress achieved against planned targets
Budget accounts report submitted together with performance measures and allowed to compare planned and achieved results

Future challenges

Improve evaluations and reviews (ex-post efficiency evaluations especially)
Improve performance and results based monitoring systems
Align institutional goals, objectives and performance measures with departmental and individual performance measures
Link individual performance appraisal with motivation of public servants