Treasury Board of Canada Secretariat
Symbol of the Government of Canada

ARCHIVED - Internal Audit of Strategic Plan Development Process


Warning This page has been archived.

Archived Content

Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.


2.0  Introduction

In today's environment of rapid change, Treasury Board Secretariat's (TBS) ability to think strategically, to develop effective strategies to cope with changed circumstances and to develop management capability to adopt and implement strategies is critical to meeting the organization's mandate. The TBS Internal Audit and Evaluation Committee requested the audit to provide Secretariat management an independent assessment of the TBS strategic planning process and to identify areas for improvement.

2.1  Background

The Treasury Board is the Cabinet committee that is responsible for the overall management of the federal government's resources. It is chaired by the President of the Treasury Board and includes the Minister of Finance and other ministers appointed by the Governor in Council. The Treasury Board Secretariat ("TBS" or the "Secretariat") is the department that supports the Treasury Board. The Secretary, who reports to the President of the Treasury Board, heads it.

The TBS operates in a constantly evolving public policy environment. Decisions concerning resource allocations or service delivery must take into consideration a wide range of different factors both internal and external to government. The Treasury Board, through TBS, works with departments and agencies to meet government commitments.

The TBS strategic planning process was formally put into place in June 2002, with responsibility given to the TBS Strategic Policy and Planning Directorate. In July 2002 a Strategic Planning Network (the Planning Network) was re-constituted, comprising representatives from all TBS business lines, branches and sectors. The Strategic Policy and Planning Directorate with support from business line leaders and the Network developed TBS's Strategic Planning and Results Framework in 2003 and led Executive Committee retreats to discuss TBS's strategic planning information and priorities.

2.2  Audit Objectives and Scope

The overall objectives for the strategic planning audit were to assess whether the processes for preparation, development and implementation of the TBS strategic plan are effective including:

  • TBS strategic planning process meets leading practice criteria[1];
  • Strategic planning documents clearly reflect the results of the strategic planning process and include all the appropriate components;
  • The strategic plan is effectively communicated and understood within the Secretariat; and
  • The strategic plan provides sufficient direction to ensure that annual operating plans prioritize initiatives, allocate resources, set results and identify strategies for implementation.

The audit scope was structured into two phases.

2003-04 Audit Plan - Phase 1. Preparation and Development of the TBS Strategic Plan

Phase 1 is included in TBS's Internal Audit Plan for 2003-04 and is the scope of this report. It focuses on preparation and development of the TBS strategic plan including assessment against the following leading practices criteria:

  • Plan to plan including identification of key stakeholders;
  • Identify organizational mandates;
  • Clarify organization mission and vision;
  • Conduct an environmental assessment (external and internal) including risk assessment;
  • Determine strategic outcomes and measures;
  • Determine results and measures;
  • Review and adopt strategies.

Note: The data gathering phase of this audit was completed prior to the major organizational change at TBS in December 2003.

Phase 2 To Be Determined: Implementation of TBS Strategic Plan

Phase 2 has not yet been scheduled due to the TBS reorganization of December 2003. The effectiveness of the implementation of the strategic plan will be evaluated against leading practices criteria include the following:

  • Develop action plans to implement strategies;
  • Develop budgets to support the action plans;
  • Assess the need for legislation or policy changes to achieve outcomes;
  • Monitor against planned measures and key performance indicators (KPI's); and
  • Reassess strategies and the strategic planning process.

The timing of the audit will need to be considered in light of the findings and recommendations of the current audit.

2.3  Audit Approach and Methodology

Approach

The approach taken to conduct the audit included the following steps:

  • Identify and document the activities and processes used for strategic planning in TBS;
  • Identify leading practices criteria by researching external publications and documented approaches in other organizations;
  • Evaluate the TBS strategic planning process against leading practices; and
  • Identify areas for improvement for the strategic planning process.

Based on the above steps, practical recommendations were developed to guide the TBS strategic planning process.

Methodology

The audit team conducted external research of strategic planning leading practices and developed the audit approach to meet TBS requirements. Strategic planning leading practices criteria were reviewed and approved by the Internal Audit and Evaluation Committee.

The audit team interviewed key members of the Strategic Policy and Planning Directorate and the TBS Planning Network and gained an understanding of the process and issues facing TBS in conducting strategic planning.

Interviews were also conducted with the Secretary, Business Line Leaders and Assistant Secretaries to discuss major issues facing the strategic planning process, effective practices and areas for improvement. Interviewees are listed in Annex B.

A document review was conducted including the following material:

  • Executive Committee ("ExCo") Strategic Planning Retreat binder (October 2003) which included:
    • TBS Secretary's Presentation – Taking Stock
    • Management Agenda – Action Plan
    • TBS Environmental Scan – Fall 2003 – Results of Interviews
    • Business Line Strategic Plan Presentations
    • TBS Strategic Planning Cycle 2003-04 Overview: Guidelines for Business Leaders
    • Strategic Planning and Results Framework (Draft)
    • TBS Environmental Scan – Part 1 Literature Review 2003
  • Other key TBS documentation; including Report on Plans and Priorities, Results for Canadians and the Forward Agenda.

The Internal Audit findings and recommendations are presented in the following two sections:

Section 3 – Audit findings: including leading practices (used as the audit criteria), an overview of the TBS strategic planning process for 2002-03 and 2003-04, activities performed by TBS that are consistent with leading practices and areas for improvement.

Section 4 – Recommendations.