Bài giảng Quản trị công: Chapter 5 - PGS.TS. Sử Đình Thành

CHAPTER 5

STRATEGIC MANAGEMENT IN PUBLIC SECTOR ORGANIZATIONS PUBLIC SECTOR ORGANIZATIONS

SU DINH THANH

LEARNING OBJECTIVES

WHAT IS A ‘STRATEGY’

i t d d

locating an organization in an ‘match’ between

■ Plan: some sort of consciously intended course of action, a l guideline to deal with a situation ■ Ploy: a specific manoeuvre intended to outwit an opponent ■ Ploy: a specific manoeuvre intended to outwit an opponent or competitor ■ Pattern: a pattern in a stream of actions ■ Position: a means of ‘environment’ – the mediating force or organization and environment organi ation and en ironment ■ Perspective/paradigm: an ingrained way of perceiving the world (what personality is to the individual). world (what ‘personality’ is to the individual). Source: Henry Mintzberg (1987)

STRATEGIC PLANING STRATEGIC PLANING

(cid:132) Planning in the public sector and its methods used have fairly closely followed the stages of planning set for the private sector sector

to legislative

arrangements

to government-wide rules and regulations,

(cid:132) Strategic planning in the public sector is a phenomenon of the early 1980s There are more problems and constraints early 1980s. There are more problems and constraints compared to the private sector and these ‘range from and judicial constitutional to mandates, to political jurisdictional boundaries, climate factors, to client and constituent interests… li

to scarce resources, t d

t i t

tit

Strategic planning models Strategic planning models

(cid:132) Model of Olsen and Eadie (1980) (1980) (cid:132) M d l (cid:132) Model of Osborne and Gaebler (1992) (cid:132) Bryson model (1988) (cid:132) B d l (1988)

f Ol d E di

Strategic planning models Strategic planning models

(cid:132) In the early 1980s, Olsen and Eadie claim that th t (cid:132) I strategic planning process consists of the following basic components : basic components : (cid:132) The overall mission and goals which strategies

l th 1980 Ol d E di l i

(cid:132) The

are aimed.

environmental scan or analysis when

(cid:132) Evaluates the strengths and weaknesses of the

(cid:132) The formulation, evaluation, and selection of f l

formulating the organization’s strategies.

l ti ti d l

(cid:132) The implementation and control of the strategic (cid:132) The implementation and control of the strategic

organization in terms of a variety of factors. Th ti f strategies.

plan.

Strategic planning models Strategic planning models

(cid:132) Osborne and Gaebler (1992): (cid:132) O b (1992)

(cid:132) analysis of the situation, both internal and external; (cid:132) diagnosis, or identification of the key issues facing ti

d G bl

id tifi f th k f i i

di i the organization;

(cid:132) definition (cid:132) definition mission; articulation of the organization s basic goals; (cid:132) articulation of the organization’s basic goals; (cid:132) creation of a vision: what success looks like; development of a strategy to realise the vision and (cid:132) development of a strategy to realise the vision and goals;

(cid:132) development of a timetable for that strategy; (cid:132) measurement and evaluation of results.

of of the the organization s organization’s fundamental fundamental

Strategic planning models Strategic planning models

(cid:132) The Bryson model of strategic planning (1988): (cid:132) Th B (1988) t

d l i f l t

i (cid:132) initiating and agreeing on a strategic planning

(cid:132) identifying organization mandates; (cid:132) clarifying organization mission and values; (cid:132) clarifying organization mission and values; (cid:132) assessing the external environment (opportunities and threats); assessing the internal environment (strengths threats); assessing the internal environment (strengths and weaknesses);

(cid:132) identifying the strategic issues facing an organization; (cid:132) formulating strategies to manage the issues; and (cid:132) establishing an effective organization vision for the

process; process;

future.

Analysing the internal environment Analysing the internal environment

(cid:132) There are four main elements to this analysis:

(cid:132) Value chain analysis. (cid:132) Core competence analysis. (cid:132) Organizational culture analysis. (cid:132) Organizational culture analysis (cid:132) Competitor and collaborator analysis.

Analysing the internal environment Analysing the internal environment

i

l

h i

(cid:132) Value chain analysis explores

the ways h

in which the i h hi h V l organization creates value for its stakeholders and distributes this value between them. In the private sector, value normally refers to the set of benefits which are required by the firm’s stakeholders. In the public sector ‘value added’ has rather more dimensions: dimensions: (cid:132) user value; value to wider groups (such as family or friends of service users); (cid:132) value to wider groups (such as family or friends of service users); (cid:132) political value (support to democratic process, e.g. through co-

planning of services with users and other stakeholders);

(

(cid:132) social value (creation of social cohesion or supporting social i l i l

h i

l interaction); environmental value (ensuring sustainability of all service (cid:132) environmental value (ensuring sustainability of all service provision).

Analysing the internal environment

Analysing the internal environment Analysing the internal environment

(cid:132) Core competence analysis also explores the strategic capabilities of the organization, as does the value chain, but it focuses on the underlying competences which to its the organization particularly useful make customers.

Analysing the internal environment

(cid:132) Organizational

culture analysis explores

the underlying taken-for-granted assumptions and norms in the organization. There are two well- established ways of exploring organizational cultures – one is the ‘four cultures’ approach of Charles Handy and the other is the ‘cultural web’ of Johnson and Scholes.

Analysing the internal environment

Analysing the internal environment Analysing the internal environment

(cid:132) A more action-oriented approach to the understanding and change of organizational culture is given by the ‘cultural web’, which suggests the mapping of six different aspects: (cid:132) The stories within the organization. (Who are the heroes? Who are the villains? What does ‘success’ look like?) (cid:132) The routines and rituals within the organization. (How seriously is staff appraisal taken? How fair is the annual promotion round? Whose work gets special mention in the Annual Report or Improvement Plan?)

Analysing the internal environment

(cid:132) Cultural web:

(cid:132) The

the

symbols

room has

(Whose

a organization. carpet/bookcase/sofa or has three windows? Do people use first carpet/bookcase/sofa or has three windows? Do people use first names or family names when talking to each other? How do people dress?)

(cid:132) The power base in the organization. (Who has the greatest power in

practice? Who controls access to those with power?)

(cid:132) The structure of the organization. (Hierarchical? Many-layered or

de-layered?)

(cid:132) The control system of the organization. (How does the organization (cid:132) The control system of the organization (How does the organization stop things happening – formally and informally? How much initiative and innovation is encouraged?)

Analysing the internal environment

k ‘H

i ll

i l d ll b ll i

(cid:132) Competitor and collaborator analysis allows us to C build on these analyses of the internal environment. E (cid:132) Essentially, we need to ask ‘How do we compare in i terms of value chain and core competences with those rivals we wish to outdo and those collaborators with rivals we wish to outdo and those collaborators with whom we wish to work?’

(cid:132) This allows us to do a ‘Strengths and Weaknesses’ analysis of our organization vis-à-vis other organizations in our sector.

Developing and evaluating strategic options Developing and evaluating strategic options

(cid:132) Taken together, the analyses of external and internal allow a SWOT (strengths, weaknesses, factors opportunities and threats) analysis to be compiled for the organization.

(cid:132) The SWOT analysis needs to be turned into a series of strategic options for doing things better in the future – building on strengths, reducing weaknesses, seizing opportunities, countering threats.

Developing and evaluating strategic options Developing and evaluating strategic options

(cid:132) The evaluation process can use three sets of criteria – feasibility, suitability and acceptability – to test out the strategic options before selecting one of them (Johnson and Scholes, 2002).

STRATEGIC MANAGEMENT IN A POLITICAL ENVIRONMENT POLITICAL ENVIRONMENT

(cid:132) The key differences which spring from the political in which public sector organizations work

strategic issues;

(cid:132) the interaction between politicians and other stakeholder

groups;

(cid:132) the pressure for ‘short - termist’ decision making arising

from regular elections.

context include: (cid:132) the role of politicians, who often clash openly on major

STRATEGIC MANAGEMENT IN A POLITICAL ENVIRONMENT POLITICAL ENVIRONMENT

(cid:132) There are many pressure which politicians may be driven to make inconsistent decisions or to reverse strategic decisions already taken: (cid:132) political parties; (cid:132) policy networks; ; (cid:132) the civil service or managerial systems; (cid:132) charities or voluntary organizations (at national or local

level); level);

(cid:132) community groups; (cid:132) sponsors who provide funding for a party or an (cid:132) sponsors who provide funding for a party or an

individual.

STRATEGIC MANAGEMENT AND INNOVATION INNOVATION

(cid:132) There are many ways in which a public sector i

bli

(cid:132) new governance structures and processes; (cid:132) new goals and ambitions for the organization… (cid:132) new goals and ambitions for the organization

hi h Th organization can innovate, including: (cid:132) new services; (cid:132) new customers (target groups); (cid:132) new service production processes; d (cid:132) new procurement processes; (cid:132) new partnership arrangements with the rest of the public sector, with the voluntary sector and with the private sector; sector;