how strategy and performance co-incide in government and public organizations.

1. Strategy formation and policy
making in government

2. I am Jan-Erik Johanson
I will walk you through the ideas of public strategic
management.
You can reach me at Jan-Erik.Johanson@tuni.fi
Welcome to the
show!
2

3. Strategy formation and policy making in government.
Palgrave (Johanson 2019)
This book describes the options offered by strategic management in
guiding public organizations. The book is based on the idea that
planning is only one option in orienting public organizations and applies
resource-based and network studies. The book also addresses the
strategic distinction between politics and administration, and illustrates
the connection between goal setting and performance of public
organizations.
Ebook: 978-3-030-03439-9
DOI:10.1007/978-3-030-03439-9
Hardcover ISBN:978-3-030-03438-2

4. Strategy formation as common sense
Strategic design
Future oriented, planning based
Internal strategic scanning
Inward-oriented, resource-based
Strategic governance
Directed to external environment,
Network-based

5. Strategy and performance
Strategy modes & economy, efficiency and effectiveness

6. How to deal with the link between strategy and
performance?
Two options:
• Integrating strategic and
performance management.
Performance management is
strategic management on
operational level (Poister 2010).
• Finding multiple points of contact
between strategic management
and performance management
(Johanson & Vakkuri 2017)

7. Strategy and performance

8. Strategy and performance (see Johanson & Vakkuri 2017)
◉ Principle of economy: organising
processes; heuristics and external
interactions simply and economically
(financial sustainability).
◉ Principle of efficiency: buffering goals,
administering fruitful doses of
resources and evaluation of external
interactions (equilibrium).
◉ Principle of effectiveness: long-term
concequences of actions, evaluation of
innovations, role of agencies in the
social integration) (value creation)
◉ Strategic design: goals and division of
labour to maximise the future benefits
(legacy)
◉ Strategic scanning: modes of
operation, resources and innovations
to produce a whole that is more than
sum of its parts (social welfare)
◉ Strategic governance: organize
external relationships to integrate
society as a whole (social capital)

9. Strategywise: Strategic design
◉ Defining action sequences: A design for the ruler,
a design for the process, a design for the
user/customer
◉ Buffering goals: Insulating bureaucracy from the
politics
◉ Harvesting legitimacy: acceptance from multiple
sources
◉ Legacy: The well-being of future generations

10. Strategywise: Internal strategic scanning
◉ Employing heuristics: negative, i.e. availability, achoring,
representativeness. positive, i.e. speed and accuracy
◉ Administering doses for survival: Combining resources
to advance value. Paradox: Managers must experience
dissatisfaction to consider a major change. Resource
scarcity is impediment to change efforts
◉ Creating innovations: e.g. governance innovations that
establish new forms of civic engagement and
democratic forums, and positional innovations that
create new user groups.
◉ Social welfare: The well-being in society in different
economic and social structures.

11. Strategywise: Strategic governance
◉ Managing external interactions: With minimal number
of ties maximal number of connections. The
centralization and decentralization of external
relationship management
◉ Weighing reciprocities: How reciprocal relationships
are? “Credit slips” and leveraging strategy. Paradox:
community building most often requires reduction of
contacts to other groups.
◉ Integrating communities: Brokering positions shorten the
paths that would otherwise be longer (horizontal and
vertical integration), bottom-up and top-down
integration.
◉ Social capital: intertwined society