A new approach to SOE strategic plans: strengthening planning quality and raising ambition
The Governance Coordination Centre (GCC) has, for the first time, assessed draft strategic activity plans of state-owned enterprises (SOEs) using an updated evaluation methodology developed in line with the new SOE strategic planning guidelines. The guidelines for preparing strategic activity plans were updated for the first time since their initial adoption.
The purpose of evaluating draft strategic activity plans is to assess SOEs’ future operating projections and to ensure that they align with the expectations of the State as owner and shareholder, are clearly and logically substantiated both financially and strategically, and are oriented towards creating increasing returns for the State. GCC initiated the update of the strategic planning guidelines in 2025, involving SOE representatives in the process and engaging in discussions on which strategic planning principles would be the most effective and best applicable in practice.
The updated methodology places greater emphasis on the quality of the strengths, weaknesses, opportunities and threats (SWOT) analysis and on setting strategic breakthrough objectives. These changes reflect the growing maturity of SOE strategic planning and the aim to ensure that strategic planning and related documents focus not only on maintaining current operations, but also on sustaining and creating greater long-term value.
As noted by Jurgita Bagdonienė, Acting Head of GCC, in previous years SWOT analyses in SOE strategic plans were often carried out formally, frequently containing generic formulations that remained unchanged year after year and had little connection to actual company actions or planned investments. Under the updated evaluation methodology, greater attention is given to the preparation of in-depth, data-driven SWOT analyses.
“Under the new methodology, it is not sufficient merely to list strengths, weaknesses, opportunities and threats – it is also necessary to identify the key factors that will have the greatest impact on a company’s success or failure. This allows for a more objective assessment of the company’s situation, more accurate decision-making, and better targeting of resources where they can be used most effectively,” says Bagdonienė.
According to Bagdonienė, in previous years SOE strategic plans often set relatively easy-to-achieve, moderate objectives focused on maintaining existing activities or making small efficiency improvements. This encouraged ‘safe’ planning, where objectives were chosen in a way that made them easy to achieve.
“Under the updated methodology, companies are required to set at least one strategic breakthrough objective – an ambitious goal that would fundamentally change the company’s operations, create a new product or service, open a new market, or significantly increase operational efficiency. Although the probability of achieving such objectives may be lower due to higher ambition and uncertainty, it is precisely these goals that have the potential to create greater value for the shareholder in the long term,” says Bagdonienė.
As draft SOE strategic activity plans were assessed under the updated methodology and guidelines for the first time, it is natural that companies faced certain uncertainties and questions.
Most discussions arose around the setting of strategic breakthrough objectives – their selection, quality and level of ambition. Not all proposed objectives met the definition of a strategic breakthrough objective as set out in the guidelines in terms of logic or content, and in some cases the planned significant change in operations or the concrete benefits in terms of efficiency, increased profitability or other aspects were not clearly articulated.
In order to address the questions raised and ensure a clear and consistent application of the updated methodology, the Governance Coordination Centre is actively maintaining dialogue with state-owned enterprises.
Following the presentation of conclusions from the evaluation of draft strategic activity plans, intensive meetings and ongoing communication have taken place and continue to take place, initiated both by GCC itself and by companies wishing to discuss the evaluation results or their proposed strategic objectives in more detail. The aim is to ensure that the information contained in SOE strategic activity plans is concise, coherent, and clearly demonstrates the priority directions in which companies are focusing their activities. All SOEs must submit their approved updated strategic activity plans to GCC by January 15.
