The document discusses strategic planning in the public sector and predicts changes needed by 2020. It predicts transitions from: 1) strategic planning to strategic management, with a focus on ongoing implementation and direction setting rather than episodic planning, 2) performance measurement to performance management, using performance data to drive improvements, and 3) separating strategy and performance to integrating the two to ensure performance supports strategic goals. Strong leadership is needed to guide these changes and help agencies effectively manage performance amid increasing uncertainties.
2. The book: “The future of government in the US”
Written in 1942 (University of Chicago Press)
Predictions about the future of US public administration:
Planning is desperately needed and is going to be firmly established in the American
governmental system
Planning should become:
a continuing process
Synthesis more than analysis
Pointed towards action
The article:
Written in 2010 (Georgia State University – by T. Poister)
Looks at the mid-term future of strategic planning in the public sector from a
managerial perspective over the next decade till the year 2020
What it is about
2
Public & not for profit organizations management
Blesiou Athina
3. Strategic planning:
Is concerned with formulating strategy
If it is effective it can bring about meaningful change
Its purpose is to strengthen organizations, improve effectiveness & create public
value in different ways
Is a set of concepts, processes & tools for shaping “what an organization is, what it
does, & why it does it” (Bryson,2004)
Strategic planning in the public sector
3
Public & not for profit organizations management
Blesiou Athina
4. What is happening now:
Strategic planning is ubiquitous
in the public sector
It has been widely adopted by
state agencies
All federal departments and
agencies periodically develop
strategic plans, as required
Strategic planning in the public sector
4
Public & not for profit organizations management
Blesiou Athina
However:
These efforts are often meaningless , failing to
meet even minimal criteria like:
establishing outcome-oriented goals &
developing strategies to achieve them,
addressing issues,
relating annual goals to long-term goals,
identifying the resources needed to achieve
these goals
The one-size-fits-all planning approach mandated
by the Government limits their ability to tailor the
efforts to their own needs
5. 3 fundamental changes need to be effectuated until 2020:
5
Public & not for profit organizations management
Blesiou Athina
Strategic
Planning
Strategic
management
Performance
measurement
Performance
management
Strategy
Performance
management
The future of strategic planning
These 3 transitions will enable agencies to focus attention on most appropriate
goals and to manage effectively to achieve those goals
6. From strategic planning to strategic
management
6
Public & not for profit organizations management
Blesiou Athina
Strategic planning
• Plan updates
• Refine the
existing strategy
• Advance
existing
priorities more
effectively
Strategic
management
• Refocus the
entire mission
• Move in new
directions
• Substantially
revamp
priorities
Strategic management involves shaping, implementing, & managing an agency’s strategic
agenda on an ongoing rather than episodic basis
7. With the use of strategic management public agencies can:
develop action plans for implementing particular strategic initiatives,
ensure that they will be carried out to completion,
assign responsibility,
identify and monitor appropriate performance measures to track progress,
incorporate goals in individuals’ performance planning and appraisal processes,
mobilize commitment throughout the organization
With strategic management the vision created at the top can be
translated into actionable strategies at the operating level
From strategic planning to strategic
management
7
Public & not for profit organizations management
Blesiou Athina
8. What is happening now:
Only 6 out of 50 states received an A rating for generating appropriate info &
using it to support decision making
Although there are performance measures, the information is not used
appropriately to generate results
Why:
Lack of political will to make difficult decisions so as to achieve performance
improvements
States are reluctant to provide increased flexibility to the agencies in terms of
resource allocation, budget execution, human resource management, etc
From performance measurement to
performance management
8
Public & not for profit organizations management
Blesiou Athina
9. The transition from performance measurement to performance management
The performance data can be utilized to trigger improvements such as:
Find the reasons for chronically poor performance & develop correcting action
Make programs more effective by redirecting internal budget allocations
Mount quality and productivity improvement initiatives to overcome performance
deficiencies
Agencies can communicate their performance information (problems and
success stories) to external audiences so as to convince critical stakeholders that
performance does indeed matter
From performance measurement to
performance management
9
Public & not for profit organizations management
Blesiou Athina
10. Integrating Strategy & Performance
Management
10
Public & not for profit organizations management
Blesiou Athina
Strategic
management
• Taking actions
now
• Position the
organization to
move into the
future
Performance
management
• Managing
ongoing
programs and
operations at
present
11. Why do we need the linkage:
Performance management systems that are not consistent with strategy run the
risk of
improving performance on outmoded criteria
missing the mark in terms of where should the organization lead to in the longer run
Strategic management is able to remove barriers in productivity (by
redesigning structure) that currently limit performance improvement
Strategic management shows the road which performance management should
follow
Integrating Strategy & Performance
Management
11
Public & not for profit organizations management
Blesiou Athina
12. Strategic management provides an essential framework for effective performance
management
Performance management can enrich strategic planning by clarifying strategy and
even “finding strategy”
Integrating Strategy & Performance
Management
12
Public & not for profit organizations management
Blesiou Athina
Strategic
planning &
management
Performance
management
13. The agencies will face rapid pace of change & increased uncertainties
Summarize - Conclusions
13
Public & not for profit organizations management
Blesiou Athina
Agencies must move from:
Planning strategy
measuring the
performance
To:
Implementing strategy
using performance information
to improve performance
Strong leadership is required to transit from a day-to-day problem
solving to management with purposeful direction
The predictions about the future of US public administration
came true and are still valid today