Defining the aim, objectives and options
Basic aim
3.7 Local authorities should develop a basic aim which:
Reflects the local authority's values, corporate agenda and strategic vision;
Forms the rationale for subsequent action by the local authority;
Provides the basis for a local authority to measure how successful it has been.
Examples of a basic aim that a local authority might be seeking to achieve are available.
Strategic objectives
3.8 Local authorities should then define strategic objectives to flow from this aim. They should be:
Consistent with the underlying basic aim and the analysis of underlying problems within the local authority;
Explicit in terms of what is to be done and over what timescale. This provides the basis for a local authority to monitor and evaluate its own progress towards achieving its strategy over time. This involves developing indicators of change that set out what success would look like. Data needs to be collected and compared over time to measure the extent to which the objective is achieved;
Achievable in more than one way, with strategic options associated with each objective;
SMART i.e. Specific, Measurable, Agreed, Realistic/Relevant, Timed.
See Goss and Blackaby’s guide for more information.
3.9 Examples of strategic objectives are available. It may be helpful to think of strategic objectives as long-term aspirational targets. By thinking about objectives as long-term targets, this can help to plan for delivery, provide openness and transparency. The process of setting targets will help prioritise what is important to the LHS. Tips for target setting are available. Local authorities will need to consider their capability to deliver before long-term targets are finalised.
Option appraisal
3.10 Once strategic objectives have been decided, strategic options then need to be identified as alternatives ways of achieving each strategic objective. See what the CIH/LGA publication recommends. These alternatives may have:
Different time profiles of impact;
Different mixtures of capital/revenue funding associated with them;
Different mixtures of public/private input/output.
3.11 As many options as possible should be set out. Involving a range of stakeholders in option selection will help bring a wider perspective on options. See Goss and Blackaby’s guide for more information. Examples of alternative options for achieving objectives are available.
3.12 Options to address a particular objective may range from the provision of new build housing, for instance, to promoting uptake of government initiatives as part of the local authority's information and advice function. While some options may be mutually exclusive, others may complement each other and form a combined response to a complex problem.
3.13 Specific strategic options should then be chosen for the LHS, and the key assumptions used in choosing specific options should be made clear. See key stages in option appraisal and checklist for generating and appraising options as identified in the CIH/LGA publication.
3.14 The Treasury's revised Green Book, Appraisal and Evaluation in Central Government and The ‘3Rs’ Guidance from ODPM are useful to local authorities conducting option appraisals.
Resources available
3.15 To be able to specify objectives and to select options for achieving them, local authorities need to take into account the financial resources likely to be available to them. LHS should take into the full range of resources (in addition to grant, borrowing, receipts etc.) that can be used to deliver the strategy such as land, private funding, developer contributions etc. Committed and potential complementary resources from partner agencies and human resources in terms of knowledge and skills should also be considered.
