Strategic Planning for the Sustainable Development of Territorial Communities

Strategic Planning for the Sustainable Development of Territorial Communities

Yaroslav Zhovnirchyk Sergii Chernov Nataliia Larina Mykola Lukashuk Liudmyla Antonova*

Department of Public Administration and Administrative Law of the Institute of State and Law VM Koretsky National Academy of Sciences of Ukraine, Kyiv 59000, Ukraine

All-Ukrainian Association of Local and Governments «Ukrainian association of Rayon (district) and Oblast (region) councils», President, Kharkiv 61000, Ukraine

Department of Public Policy, Educational and Scientific Institute of Public Administration and Civil Service of Taras Shevchenko National University of Kyiv, Kyiv 59021, Ukraine

Department of Public Management and Law, Communal Institution of Higher Education “Dnipro Academy of Continuing Education” of Dnipropetrovsk Regional Council, Dnipro 49000, Ukraine

Department of Accounting and Audit, Petro Mohyla Black Sea National University, Mykolayiv 54000, Ukraine

Corresponding Author Email: 
antonova.luidmyla.lnpu@gmail.com
Page: 
2097-2105
|
DOI: 
https://doi.org/10.18280/ijsdp.180712
Received: 
20 January 2023
|
Revised: 
30 May 2023
|
Accepted: 
10 June 2023
|
Available online: 
31 July 2023
| Citation

© 2023 IIETA. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).

OPEN ACCESS

Abstract: 

Strategic planning for sustainable development is actively employed across various socio-economic systems, but territorial communities are in most need due to the complexity of their socio-economic structure. One of the most significant and relevant challenges in this context is strategic planning itself. The primary objective of this article is to apply a methodological approach to enhance the effectiveness of strategic planning for the sustainable development of territorial communities, with an emphasis on the tactical and operational aspects of this process. The object of the study is the territorial community. The research methodology encompasses methodological aspects of modeling techniques that facilitate the sustainability planning process. The results obtained from the study can potentially improve the strategic planning process for sustainable development within a single territorial community by modeling the stages of tactical and operational activities. This study is constrained by considering the specifics of only one territorial community. Future research should focus on expanding the methodological approach and incorporating more elements of strategic planning.

Keywords: 

sustainable development, planning, region, territorial communities

1. Introduction

Our world is constantly changing due to the creative and economic activities of both individuals and groups that constitute the human community. This continuous change is referred to as development, understood as the progressive improvement of technological and social platforms that shape the way people live. Technological innovation often stimulates social innovation, and this development tends to occur in 'jumps' rather than smoothly. Notably, transitions from one technological platform to another can radically alter lifestyles. These platforms are often accompanied by industrial revolutions, as seen with Industry 4.0 and 5.0.

The three most recent industrial (or more accurately, technological) revolutions have occurred in less than two centuries. Today, we are on the cusp of the fourth technological revolution, which could once again dramatically change our way of life and even the nature of humanity itself. These changes are global and affect all of humanity. Initially emerging as innovations, these technological and social platforms stabilize over time and become the norm. Consequently, we can predict the sustainable development of a regional/territorial socio-economic community for a reasonably predictable period to a certain extent, and then attempt to influence this development through a system of goals and actions that form strategic content.

Regional sustainable development is perceived as a process of consistent and sustainable changes in the local environment, contributing to positive alterations in the living conditions of the territorial community. These can be objectively assessed through socio-economic indicators or subjectively experienced as a level of personal comfort by community members. Clearly, sustainable development is not a spontaneous process; it is executed using appropriate tools. Since it's a complex process that requires substantial effort, effective planning is vital. Without planning, sustainable development itself cannot be achieved. As a result, there must be an entity (or entities) steering this development through plans.

Planning for its own sustainable development allows the territorial community to better understand its goals, recognize its competitive advantages, and foresee potential dangers and threats. It also promotes efficient and economical use of both internal and external resources (financial, infrastructural, human), and facilitates the introduction of control over their use. Most importantly, it enables a shift from crisis management to proactive planning. This is particularly crucial today, as united territorial communities are entering a new stage of their existence. They have gained authority, resources, and external support. They are accountable to their residents for creating a comfortable and safe living environment. This necessitates predictable and motivated sustainable development, which in turn requires development planning and space planning.

Therefore, the main aim of this article is to apply a methodical approach to ensure the effectiveness of strategic planning for the sustainable development of territorial communities, with a focus on the tactical and operational aspects of this process. The structure of the article includes a literature review on the topic, a detailed description of the fundamental methodology used, the main results of the study, and their corresponding discussion. The final part of the article presents the study's findings and conclusions.

2. Literature Review

Strategic planning within a territorial community is fundamentally based on the specificities of ensuring its sustainable development. Sustainable development, the most prevalent modern concept of interaction between society and nature, is now adhered to by advanced nations worldwide. It represents a balance between the economic and social development of society and environmental preservation. At the core of sustainable development is the equilibrium in the triad: human - economy - nature. Sustainable development implies the economically, socially, and environmentally balanced development of specific territories, including urban and rural settlements situated within them, aimed at the coordinated formation and operation of their economic, social, and environmental components, predicated on the rational use of all types of resources (natural, labor, industrial, scientific and technical, informational) [1, 2].

As noted by Bazyliuk et al. [3] as well as Esty and Porter [4], the globalization of the world economy introduces new dynamics and alters the levels of responsibility for local development. Globalization fortifies the role of communities in the economic development of local territories and the country. The completion of decentralization and self-government reforms, the practical implementation of the principle of ubiquitous local self-government, places community leaders at a new level of responsibility for sustainable development. Territorial communities must transition from being objects of management to subjects of management and ensure their own capacity independently. These communities will be responsible for planning their development, economic future, and well-being. Consequently, local authorities must comprehend modern development peculiarities and possess the necessary knowledge, information, skills, and experience to ensure their communities' enhanced competitiveness. This view is partially agreed upon.

An intriguing perspective is provided by Mensah [5] and Kryshtanovych et al. [6], who suggest that globalization has significantly impacted the way cities and territories develop. It involves the expansion of the size and forms of international economic relations, enhances access to large capital and resources, technologies, and markets, and leads to a deepening of interdependence between territories in different countries worldwide. Transnational companies localize their production in areas where the environment is more competitive. Countries and regions compete to attract corporate jobs and introduce activities with high productivity, high added value, and significant economic outcomes.

The problem of limited production resources, inherent in the economy of the last century, is diminishing (up to a certain limit) as a result of globalization in resource markets, as most scientists [7-9] note. World countries now have practically unlimited access to global labor resources, capital, and technology. As a result, there is, in theory, an objective long-term global trend towards equalizing economic development indicators across all world countries. However, this might not materialize, given that territories vary in attractiveness and the capacity to attract external resources.

As mentioned by Singh et al. [10] and Kryshtanovych et al. [11], sustainable development is impossible without the economy. Businesses create added value. The better the conditions for business development, the better the conditions for local community development. The conditions for societal development are provided by numerous components: national and local authorities, the maturity of civil society, the culture and willingness of local communities to take responsibility for managing territorial development, the quality of life today and in the future, etc. In general, the success of sustainable development depends on the success of local economic development, particularly the conditions in which businesses operate.

In summary, despite the significant academic achievements of our predecessors, we believe that the strategic planning of sustainable development has been considered quite superficially, with insufficient attention paid to its tactical and operational aspects. This is why our study may differ and holds its relevance and novelty. This novelty lies in applying a contemporary methodological approach for strategic planning of the sustainable development of a territorial community, which involves detailing all tactical and operational measures.

3. Methodology

It should be noted that we aim to model the key stages of strategic planning for sustainable development of a single territorial community. Applying the methods of analysis, synthesis, comparison, we came to the conclusion through an abstract method that the choice of a territorial community will cause it to fall under all 3 key criteria: lack of an appropriate sustainable development strategy; is the object of work of the co-authors of the article; has a low scientific interest among other works. Of course, not only such a territorial community is the only object of research, but the choice was analyzed and in order to present our own research results, we must choose only one example. One such example is Lesser Poland Voivodeship.

The activity of any territorial community is a system of interaction of all the processes taking place in it. Consequently, processes are the main definition of the activity of a territorial community. The need for their visual representation and description puts before the developer the question of determining the modeling method. The problem of determining the method for constructing process diagrams is currently quite relevant. There are a large number of methods by which process diagrams can be represented, among the main highlights are BPMN, ARIS, UML, IDEF, etc. In this paper, the IDEF0 methodology is chosen as the methods (tools) for modeling business process diagrams in this article. Today, process modeling for a territorial community is one of the main factors for its successful activity. The modeling methodology we have chosen allows us to better focus on goals and their gradual achievement, which is extremely important in strategic planning.

The IDEF0 methodology prescribes the construction of a hierarchical system of diagrams - single descriptions of system fragments. First, a description of the system as a whole and its interaction with the outside world (context diagram) is carried out, after which a functional decomposition is carried out - the system is divided into subsystems and each subsystem is described separately (decomposition diagrams). Then each subsystem is broken down into smaller ones, and so on until the required degree of detail is reached. The interaction of works with the outside world and among themselves is described in the form of arrows depicted by single lines with arrows at the ends. Arrows represent some information and are called nouns. The UML language was developed to create models of information systems with a view to their subsequent implementation in the form of object-oriented programs.

All ideas about the model of a complex system are fixed in the form of diagrams - special graphic structures (diagrams, graphs).

There are 8 main types of UML diagrams that reflect various aspects: the processes performed by the system (services provided to the user), the sequence of algorithmic operations performed by the system, the structure of program objects, their interaction (message exchange), etc.

Unlike UML, IDEF0 (Integrated Definition Function Modeling) technology dates back to the early 70s and belongs to the categories of methodologies based on the SADT (Structured Analysis and Design Technique) method of structural analysis and design. A characteristic feature of this methodology is the presence of a graphical representation of diagrams of the modeling system of processes. The properties of this graphical representation are ease of use for describing the simulated objects, improving the perception of visual models for the general public of users and developers. The IDEF family includes SADT / IDEF0, IDEF1, IDEF2, IDEF3, IDEF4 and DFD, etc., which, in turn, have differences and limits of use. They cover a wide range of applications, from object-oriented systems modeling to functional data modeling.

The SADT/IDEF0 method can be considered the most popular among these methodologies, since it provides the user with ample opportunities to describe the business processes of automated and non-automated enterprise systems. The main purpose of the IDEF0 method is to model the activities of a territorial community. IDEF0 is used to describe processes at the top level, so it follows that IDEF0 is used to describe hierarchical process models. In general, this methodology takes the form of a rectangle and arrows entering and exiting the rectangle. The rectangle means a business process, and the arrows represent input (Input), control (Control), output (Output) and mechanism or resource (Mechanism). The general designation of these operations can be denoted as ICOM, an abbreviation for all arrows related to the process. It is important to consider that the location of the arrows clearly defines the action.

According to the proposed methodological approach, it is necessary to determine the main goals of modeling, they will form three models for their achievement: strategic, tactical and operational (Table 1).

It should be noted that IDEF0 does not provide a representation of the conditions under which a particular process should occur. Unlike the diagram built using UML, the IDEF0 methodology does not allow further improvement of the process, since it has a well-defined representation of the activities of the territorial community, it is convenient only for describing and presenting the sustainable development planning process.

Table 1. The main objectives of the three models of sustainable development planning by the territorial community

Characterization of the Given Modeling Parameters

A0. Effective Strategic Planning for Sustainable Development Lesser Poland Voivodeship

B0. Effective Tactical Planning for Sustainable Development Lesser Poland Voivodeship

C0. Effective Operational Planning for Sustainable Development Lesser Poland Voivodeship

4. Results of Research

It is necessary to form a diagram of the stages of achieving A0 - Effective Strategic Planning for Sustainable Development Lesser Poland Voivodeship (Figure 1).

Figure 1. Achievement diagram A0 - Effective Strategic Planning for Sustainable Development Lesser Poland Voivodeship (developed by the authors)

Key clarification of certain aspects of achieving A0 are its main elements: inputs (I) and outputs (O), which constitute the desired socio-economic effect (Figure 2).

Figure 2. The essence of the socio-economic effect of strategic planning of sustainable development (developed by the authors)

Consider all aspects of strategic planning for the sustainable development of the territorial community, Lesser Poland Voivodeship:

A1. Organization of the process of preparing a strategic plan. Development of a strategic plan requires both professional knowledge of the basics of strategic planning and broad involvement of all stakeholders in this process at all stages of document preparation. The initiation of the strategic planning process should be done by the local authorities as part of standard management procedures. At the organizational (preparatory) stage, the following is carried out: initiation of the development of a strategy; stakeholder analysis; formation of working groups; formation of the secretariat; preparation of a plan to inform and involve the population. After the analysis, it is necessary to form a working group dealing with strategic planning. To do this, a variety of methods of persuasion, and sometimes persuasion, must be used to attract individual citizens to work on the development of a strategic plan for the community. An important element of organizational support for strategic planning of sustainable development is the creation of a professional team in the structure of the executive body of the local council responsible for the implementation of the strategic plan.

A2. Conducting a strategic analysis. An extremely important stage in the formation of a strategic plan for the sustainable development of any planning object is the analysis of the environment. This is a very complex process that requires careful monitoring of the processes taking place in the internal environment, assessing the factors and establishing a connection between them, as well as between the strengths and weaknesses of the territory, region and the opportunities and threats associated with the external environment. There are several reasons for preparing a socio-economic analysis. The first is to develop key questions and conclusions supported by relevant data needed for further planning steps. In addition, at this stage it is important to assess the level of social activity of the population. Such an assessment will provide information about the readiness of the population for self-organization and unification to solve common problems and readiness to take part in the sustainable development of their territory in the future. A more detailed description of the state of the technical infrastructure will provide information on the possibilities for sustainable development of the territory, since it is important to have information not only about the availability and capacity of electrical substations, main water pipelines, but also the cost of providing services for different categories of users (for the population, enterprises and organizations).

A3. Monitoring and evaluation of strategic planning. Strategic monitoring of the implementation of local programs (strategies) is based on the complexity, consistency and regular use of the same principles and tools. This allows you to monitor the dynamics of changes in problems during the implementation of programs and timely coordinate activities, use the necessary methods and tools. Monitoring involves the collection of information, its comprehensive assessment and forecast according to a certain system of indicators. The need to implement this requirement is due to its focus on the analysis and comparison of management results. The standard nature of the information set also provides the convenience of searching and fixing certain data and gives the monitoring properties of the information process. The evaluation of the long-term effects of the program or impact assessment is carried out, as a rule, 3-7 years after the completion of the program in order to determine its real impact on the community. With the help of such an assessment, genuine causal relationships between the goals set, and the results achieved are revealed.

The very model of stages of strategic planning of sustainable development Lesser Poland Voivodeship is shown in Figure 3.

It is necessary to form a diagram of the stages of achieving B0 - Effective Tactical Planning for Sustainable Development Lesser Poland Voivodeship (Figure 4).

The essence of the socio-economic effect of tactical planning of sustainable development is shown in Figure 5.

Figure 3. Model of stages of strategic planning of sustainable development Lesser Poland Voivodeship (developed by the authors)

Figure 4. Achievement diagram B0 - Effective tactical planning for sustainable development Lesser Poland Voivodeship (developed by the authors)

Figure 5. The essence of the socio-economic effect of tactical planning of sustainable development (developed by the authors)

Figure 6. Model of stages of tactical planning of sustainable development Lesser Poland Voivodeship (developed by the authors)

Consider all aspects of tactical planning for the sustainable development of the territorial community, Lesser Poland Voivodeship:

B1. Formation of tactical vision. The general rule for checking the correctness of the formation of a Tactical Vision is that if it is applied to another territory, then this is not a vision. That is, the Tactical Vision should reflect the uniqueness of the territory that cannot be copied by other territories, and achieving it will allow it to be competitive in the future. The search for uniqueness is carried out at the stage of analytical work and is finalized after discussions with the public. If the uniqueness of the territory is found and the tactical vision is formed correctly, then not a single change in local leadership, not a single change in external conditions will change the movement towards purposeful sustainable development of the community. Uniqueness is a natural, apolitical characteristic of a territory that can only be used or destroyed. However, provided that the Tactical Vision is approved with broad public support, the latter scenario is unlikely and extremely unprofitable, no matter who heads the local self-government bodies.

B2. Analysis of the profile of a territorial community. The development of the Society Profile is necessary for a more accurate assessment of the current socio-economic situation, which, of course, affects the choice of scenario and tactical priorities for sustainable development. The community profile should be seen as one of the tools to ensure that the area has better access to credit or grants, as well as to investments. It is precisely on this aspect that investors often assess the possibilities of a territory, its potential in terms of payments for loans received. Investors are interested in the advantages of this territory over other possible places for investing their funds.

B3. Application of problem-oriented monitoring. The purpose of problem-oriented monitoring is to track sustainable development trends of a particular territorial (local) problem, selected according to certain criteria, recognized as socially significant and requires special intervention by state and local authorities. In contrast to the total subject of problem-oriented monitoring is not the diagnosis of the general situation, but the observation of specific phenomena and processes that occur in the Lesser Poland Voivodeship.

The very model of stages of tactical planning of sustainable development Lesser Poland Voivodeship is shown in Figure 6.

It is necessary to form a diagram of the stages of achieving C0 - Effective Operational Planning for Sustainable Development Lesser Poland Voivodeship (Figure 7).

Figure 7. Achievement diagram C0 - Effective operational planning for sustainable development Lesser Poland Voivodeship (developed by the authors)

The essence of the socio-economic effect of operational planning of sustainable development is shown in Figure 6.

Consider all aspects of operational planning for the sustainable development of the territorial community, Lesser Poland Voivodeship (Figure 8).

C1. Preparation of an operational plan. From the point of view of methodology, at the operational stage, one should answer the question of how the strategic goals will be achieved (operational goals) and what needs to be done for this (tasks-projects). In other words, it is necessary to move from the general to the specific, that is, to reveal the content of strategic goals in operational goals and the content of operational goals in tasks. When developing an operational plan, these reasons should be analyzed, and in the process of its implementation, both the sequence and timing of projects should be continuously coordinated. It is also important to ensure that the operational planning approach adopted is consistent with institutional realities, taking into account any possible constraints imposed by the regulatory framework. For each operational goal (subprogram), you need to create operational tasks. To do this, the working group identifies the main problems that hinder the achievement of operational goals and must be resolved. Certain main problems are transformed into operational tasks.

Figure 8. The essence of the socio-economic effect of operational planning of sustainable development (developed by the authors)

Figure 9. Model of stages of operational planning of sustainable development Lesser Poland Voivodeship (developed by the authors)

Figure 10. Results of a survey of Lesser Poland Voivodeship management regarding the effectiveness of the proposed methodological approach (developed by the authors)

C2. Implementation of operational programs. The creation of program documents is one of the most complex and requires professional training and experience of the participants in the planning process. As a rule, several options for the sequence of projects are worked out and the most suitable one is selected in terms of feasibility, financial resources and urgent needs of the territorial community. In terms of content, within the framework of individual subprograms of the operational plan, different categories of projects are possible: investment projects with large financial costs; coordination projects that require not only money, but also initiatives and approvals from local authorities; projects that must be implemented exclusively by authorities or private individuals, as well as jointly. It can be effective to cooperate with various non-profit organizations that activate communication with the public, contribute to the search for sources of joint funding for individual projects by attracting funds from international donor structures. Thus, projects are not only the basis for the strategic and operational activities of local governments, but also a tool for educating its members as socially and economically active subjects of sustainable development, and establishing intersectoral cooperation.

C3. Implementation of elements of dynamic monitoring. The basis for the examination is operational data on the dynamics of sustainable development of an object, phenomenon or indicator. In this case, the operational task of monitoring is to warn about possible deviations from the planned, and identifying the causes of deviations is secondary, since the reasons are quite clear and transparent.

The very model of stages of operational planning of sustainable development Lesser Poland Voivodeship is shown in Figure 9.

The leadership of the public authority Lesser Poland Voivodeship was involved in conducting a survey on the convenience and effectiveness of the proposed methodological approach to strategic planning for their territorial community. The survey was not of an expert nature, but it was more informative to find out the practical value and expediency of such a methodological approach (Figure 10).

In general, the presented methodological approach can be improved in the future, taking into account modern realities and changes in the functioning environment of a particular territorial community.

5. Discussions

Most of the scientific studies devoted to the strategic planning of sustainable development focus on innovations [12-16]. Today's competitive global environment puts pressure on communities to develop. Sustainable development and the desire to improve the quality of life require a constant search for new, extraordinary solutions. Rapid technological, political, economic and social changes require creativity in planning changes, finding new ways to develop the economy (for example, the development of the knowledge economy, the information economy, the experience economy, etc.). Out of the box thinking should become the norm, not the exception. Success requires approaches that are creative and adaptable to the dynamic challenges that communities face.

Bednarska-Olejniczak et al. [17] and Pozoukidou et al. [18] emphasize the technological basis in strategic planning for sustainable development. The key characteristics of planning in the context of globalization are technological innovations, the modernization of jobs and the content of labor of workers, as well as the emergence of internal local economic driving forces that are based on the competition of factor conditions of information, creativity and knowledge. In this context, strategies are planned actions aimed at achieving certain economic goals of a city or region, based on the objective opportunities that exist for a given local area. Emphasis is placed on the involvement of communities in territorial development planning, and country development planning is consistent with the overall strategic goals of regions and local communities.

Presented by Yan et al. [19] and Kryshtanovych et al. [20], the modern model of local economic development is based on the capital of knowledge and intelligence and links the triad of concepts "globalization - innovation - competitiveness of the territory". This approach is due to the high rates of development of individual countries and the high concentration of capital in certain territories and cities. The high mobility of capital and the natural market desire of the economy to balance entail the flow of capital from some territories, cities, countries to others that were the most favorable and most ready for external investment. In the present period of development of the world economy, this applies to all countries with a market economy. But, obviously, in each country there is a different perception and implementation of these actions, which describes the level of development of their economy.

However, the above results of the study differ from ours. We take as a basis a competitively taken territorial community with its specifics and characteristics. The entire modeling process was adapted to the conditions and elements of the territorial community, which served as the basis for our study.

6. Conclusions

The main result of our study is the formation of a strategic planning model for sustainable development of a single territorial community. A feature of our methodological approach is the possibility of distributing the strategic planning system and tactical and operational measures of sustainable development planning.

Summing up, in the conditions of democratization of public relations, ensuring the well-being of territorial communities is a criterion sign of the success of administrative and financial decentralization and sustainable development policy. In this context, changes in approaches to the functioning of mechanisms must necessarily be aimed at ensuring a high quality and standard of living for the population of territorial communities, regardless of place of residence, promote territorial cohesion, and the effective formation and use of their endogenous potential.

The article has a number of limitations. Restrictions relate to the fact that territorial communities are different in their structure and characteristics. That is why not all aspects and not all territorial communities could be taken into account. Another limitation is not taking into account all aspects of strategic planning for sustainable development. We tried to take into account the key stages and processes, however, there are a number of others that need further research and accounting.

As for further research, it should be noted that at the same time, the intensification of the creation of territorial communities in the context of administrative and financial decentralization and the need to ensure the well-being of their inhabitants is accompanied by an imbalance of functions and their financial support between levels of government. In this context, the problem of improving the tools of budgetary mechanisms in order to ensure the sustainable development of territorial communities and leveling the risks that accompany modern reforms remains unresolved. The need to take into account economic, social and spatial factors in the context of the formation of a new paradigm of regional development indicates the feasibility of theoretical and methodological studies of budgetary mechanisms for ensuring the well-being of territorial communities in the context of deepening socio-economic differentiation from the standpoint of regionalism and finance. This will be the focus of our further research.

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