2. • Strategic planning is defined as a systematic process for managing the organization and its
future direction in relation to its environment and the demands of external stakeholders,
including strategy formulation, analysis of strengths and weaknesses, identification of agency
stakeholders, implementation of strategic actions, and issue management
• Shifting Strategic Management in the Public Sector to Strategic Management in the Public
Services.
• The financial crisis of 2007–2009 emerging strategic management in the public sector step
by step, as part of modern public governance.
• Strategic management should not any longer be seen as simply or only a tool for use in
making public services better Increasing process governments can use for national
development, strategic planning use in national development planning
STRATEGIC MANAGEMENT IN THE PUBLIC SECTOR VS PUBLIC SERVICES.
. . . the key thing is having that strategic vision, thinking about what’s right for the country in the long
term and just sticking to your guns on those things. That’s what makes a great Prime Minister.
O’Donnell (2014),
4. WHAT IS STRATEGIC MANAGEMENT
• Strategic management is an approach to strategizing by public organizations or other entities integrates
strategy formulation and implementation
• Typically includes strategic planning to formulate strategies, ways of implementing strategies, and continu-
ous strategic learning.
• Strategic management can help public organizations or other entities achieve important goals and create
public value.
• Strategy is what links capabilities and aspirations.
• Four broad types of strategists (as individuals, teams, organizations, and collaborations) in public
administration exist:
• The reactor (low aspirations, low capabilities)
• The dreamer (high aspirations, low capabilities)
• The underachiever (low aspirations, high capabilities)
• The savvy strategist (high aspirations, high capabilities).
6. • In strategy formulation, strategy execution process, a company’s senior managers must wrestle
with the issue of what directional path the company should take and whether its market
positioning and future performance prospects could be improved by changing the company’s
product offerings and/or the markets in which it participates and/or the customers it caters to
and/or the technologies it employs.
• Top management’s views about the company’s direction and future product-customer-market
technology focus constitute a strategic vision for the company.
• A clearly articulated strategic vision communicates management’s aspirations to stakeholders
about “where we are going” and helps steer the energies of company personnel in a common
direction.
• For instance, the vision of Google’s co-founders Larry Page and Sergey Brin “to organize the
world’s information and make it universally accessible and useful” captured the imagination of
Google employees, served as the basis for crafting the company’s strategic actions, and aided
internal efforts to mobilize and direct the company’s resources
DEVELOPING A STRATEGIC VISION, A MISSION, AND CORE VALUES
11. • Strategies can be deliberately formulated and implemented can emerge in an unplanned way as
desirable patterns form and are recognized after the fact as good strategies.
• Policymakers and other decision-makers are called upon to be good at strategizing.
• Strategizing consists of the activities undertaken by public organizations or other entities to
deliberately and emergently (re)align their aspirations and capabilities how aspirations can actually
be achieved within a given context—or else need to be changed—taking into account current
capabilities and the possible need to develop new capabilities or to change the context.
• The definition of strategizing responds to two main confusions regarding strategy in public
administration.
• Strategizing, indicates that strategy is not something public-sector entities "have"—a reification of
strategy—but rather something they "do"
• How good strategizing happens: Which strategy tools were used,
why and how? Who was involved, why and how? What did the actual process look like and
why?
STRATEGIZING
12. • New Public Management (NPM) emerged in the 1980s as a response to addressing public
sector inefciencies and the need to be more accountable and responsive to the needs of the
public.
• Application of private sector managerialism to public administration using private sector
business principles in the public sector (Denhardt & Denhardt, 2007).
• NPM aims at :
• Increasing the autonomy of management of the public sector institutions
• Improving and rewarding performance
• Meeting set targets
• Providing quality services to the citizens.
• Using digital technologies eased the process for public organisations
NEW PUBLIC MANAGEMENT
14. • Public choice theory is embedded in the principles of accountability and transparency.
• Principal – agent theory posits that the relationships between the governed and governors
are best understood from the purview of a contract emphasising that the citizens should
not be seen as consumers but rather as customers whom public sector institutions are
meant to satisfy by providing the best services at the lowest possible cost.
• Transaction cost theory focuses on the cost aspect of the relationship between public
sector institutions and citizens public sector institutions’ structure should allow that
services are rendered at the lowest cost without jeopardising effectiveness and efficiency
(Williamson, 2008) substituting bureaucracy and other structural excesses that affect the
effectiveness of public sector organisations digitalisation and outsourcing public–
private partnership
• The technical rational theory posits that a technical rational position on an institutional
framework, after implementation how public sector organisations should be operated,
organised, and managed with new culture.
CHARACTERISTIC OF NPM
15. • The use of information and communications technology (ICT) as a strategic management tool for
increasing productivity enhancing communication between governments and their citizens
• Transforming the world in diverse ways with the use of the internet, mobile phones, social media, and
many other ICT platforms make people–people interactions increasingly easier
• In public service delivery, digitalisation has manifested in various forms making governance and
government services accessible to the populace through information technology in the areas of:
• Services (e-services)
• Management (e-management)
• Participation (e-participation)
• Commerce (e-commerce)
• E-governance refers to the use of ICT platforms in the performance of governmental functions for the
beneft of the citizens to increase the social inclusion of citizens enables more people to access
government services digitally (United Nations, 2018).
• For example, government is using drones to improve the supply of health supplies (vaccines)
• Digitalisation of public sector organisations is one of the ways of implementing the ideals of the NPM to
public service provision increasingly moving towards the use of ICT to improve efciency
ROLE OF TECHNOLOGY
16. • Strategy is omnipresent in government, and many approaches tied to strategy strategic planning and
management:
• What is the public value he or she wants to generate?
• How will he or she do so? And with whom?
• Strategies link aspirations and the capabilities needed to achieve them (Gaddis, 2018).
• Strategizing implies the deliberate as well as emergent (re)alignment of aspirations and
capabilities, thus making sure that aspirations can actually be achieved—or else need to
be changed—by taking into account current capabilities and the possible need to develop
new ones.
• Strategizing is not limited to single organizations but is relevant to any entity where aspirations and
capabilities need to be aligned (e.g., individuals, teams, organizations, coalitions, communities).
• “The coach still sees chances because he sees vision and structure.”
STRATEGY