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Titelmasterformat durch Klicken bearbeiten,Textmasterformate durch Klicken bearbeiten,Zweite Ebene,Dritte Ebene,Vierte Ebene,Fnfte Ebene,*,Strategic Management in the Public Sector,*,STRATEGIC MANAGEMENT IN THE PUBLIC,SECTOR,The strategic triangle as a new conceptpresented within a relevant case study,By: Luke McBain, MBA General,Management luke.mcbainweb.de,Dr.,Jonathan Smith, Chartered FCIPD, Senior,Lecturer,Concepts and theories impacting public management,The challenge today:,Growing,complexity of social,problems,T,he,growing,demands,of,citizens,Acceleration,of social,change,Solution of 80ies: New Public Management“,Private,sector principles and tools,Enrichment in 90ies: Perspective of Governance“,Shaping,and optimizing of the interdependencies between actors in a society which cooperatively attempt to produce public value,Today:,P,ublic,administration,as,a partner of politicians in the definition of what value should be created in what way,Formulating,policy,Setting,objectives,Political rationale,Management rationale,Attainment of,objectives,Implementation,of objectives,Evaluation of,outcomes,Documentation of,outcomes,Quantifiying,objectives,Translation“,Strategic Management in the Public Sector,2,Concepts and theories impacting public management,The rational planning,model,seems to be unrealistic,in the,face of complex social interaction,What,is actually happening in public,management?,“Bounded rationality”,(Simon, 1997; Kehlmann, 2003),“Logical incrementalism”,(Quinn, 1980; Quinn & Voyer 1994),“Management of muddling through”,(Lindblom, 1959),“Satisficing”,(Mayhew, 1974; Bogumil & Jann 2009), cross cutting themes in all steps of strategic management in the public sector and convey the importance of negotiation and bargaining,3,C,haracteristics,of the public sector,shaping,strategic,management,The authorizing,environment and the interdependent actors can be considered the,actua,l,market of the public,organization, further factors impact strategic management:,Environmental factors,Influence,of the,political,level,Legal mandates,Transactional factors,Coerciveness,S,cope,of,impact,Public scrutiny, accountability,Collective ownership,M,anagement,must include societal values such as,fairness, openness, inclusiveness,honesty,Factors in,the,organization,Goal,setting processes are,conflicted,Measuring,performance complex and,difficult,Strategic Management in the Public Sector,4,Characteristics of the public sector shaping strategic management,Impact,on the models available to strategic management,:,Strategy as positioning or scope:,The,more public an organization is, the more it will have to position itself within the authorizing environment as its “market” in terms of producing outcome and adjusting its scope.,Strategy as setting long-term direction:,Due,to the turbulent nature of the authorizing environment,a,core unit of the state will have more difficulty in setting long-term direction than a more peripheral one which delivers concrete products and services.,Strategic fit,can,be seen here by maximizing public value while at the same time attracting a maximum of permission and,resources. This,might lead to trade-offs between what is perceived valuable and acceptable to the political environment,.,Strategy as stretching competencies:,Not,only must the public manger use internal capabilities but rather rally support from co-producers and external,actors, which,means that the organizations strategy must be attractive enough for outside actors,.,Strategic Management in the Public Sector,5,The strategic triangle,A new approach to strategic management in the public sector:,The strategic triangle,(adapted from Moore, 1995),Three three main,management dimensions,Political management,Political support as “ an axiomatic principle of public sector management.”,Cooperation management,Collaboration,coproduction and networking between social actors,Operations Management,Maximizing efficiency,and effectiveness,(Managing up),(Managing outward),(Managing down),Key person:,Head of department responsible for all three dimensions of strategic management,Key persons:,Middle management,main responsibility for cooperation and operations management,Key persons:,Staff,main responsibility for operations,Strategic Management in the Public Sector,The Case: The Training Centre for Development,Cooperation (V-EZ),Human,resource and capacity building institution in the field of development,cooperation,Public,utility limited liability company financed by the Federal Ministry of Economic Cooperation (,BMZ),O,ffers,training courses in the areas of:,Intercultural,competencies and country specific orientations,Development policy,Consulting and management competencies,Language,Specific training for partners and spouses of,ex-pats,2008:,Over 1.700 participants trained,Budget of 3.9 m Euro,Current mandate: “Preparation and training for international deployment of experts in development cooperation”.,Since 2005 the V-EZ has given itself new strategic aims:,Expansion of preparation towards international human resources development,Expansion of customer groups (cross-departmental, private sector),Internationalization / European focus (trainers, offers, partnering with international training centers),V-EZ, the department 8 of InWEnt Capacity Building International:,7,The Case: The Training Centre for Development Cooperation (V-EZ),Chronology,of events,in,a tactical time line,2006,2007,2008,2009,Strategy,formulation,Process standardization and centralization (analysis),Focus on meeting acquisition objectives,Adapting acquisition objectives,C,hange in marketing stance,Modularization,Development policy curriculum,New course structure,Extension of mandate meets resistance,Division coordination structure implemented,Sick leave division manager,“Strategy rests”,Staff changes,From extension of mandate to,Modern Preparation,Modern Preparation,Pilots,Innovation,Formulation of new marketing strategy,Building internal competencies,New departmental structure,Personnel,fluctuation,Mid-term Future,Capacity,Competencies,Communication,Infrastructure,Long-term Future,Elections,Financial crisis,2005,The Case: The Training Centre for Development Cooperation (V-EZ),Main,finding,1,VE-Z managed,strategically very close to Quinns concept of,“,logical incrementalism,”, blending,intended and emerging,strategy,The organizations focus is on,key themes or thrusts,“Broad initiatives that can be flexibly guided in any of several possible desirable directions.,“,(,Quinn & Voyer,1998):,These themes,are communicated again and,again,and are well reflected in the answers given by,respondents,A setback in extending the mandate was offset by focusing of innovation and establishing international,cooperations,“Tactical,shifts,and,partial,solutions”,(Quinn & Voyer),internal reform, quality management, process optimization, restructuring and standardization can be seen as a series of tactical adjustments to create organizational,readiness,“Experimentation (,that,) can occur with minimized risk,”,(Quinn & Voyer),Current focus,more on innovation and pilot,projects,“From training to HR development” & “From national to international”,Strategic Management in the Public Sector,9,Relevancy of the,strategic triangle observed in the,case,Difference,in the dimensions impacting the formulation of strategy, the implementation and the adaption of strategy,.,In the formulation phase political management is dominant:,Strategy,was formulated in alignment to international political developments,Millennium,Development Goals in 2000,and,the Paris Declaration in,2005,“Is the value we are producing significant enough to secure the future in light of internationalization of development cooperation?”,Warding off threat of a further merger for InWEnt and the V-EZ (in 2010 imminent),Future needs and interests of the existing cooperation partners were anticipated by the organization.,However: German cooperating partners were not as supportive of these new strategic aims,This strategy can be labeled as “pro-active”. The organization is taking a “prospector” stance by seeking new markets and new alliances and creating new services (Miles Boyne, 2004).,Management,dimensions of the strategic triangle are,interdependent,Political Management,Operations Management,Cooperation Management,Main,finding,2,Main,finding,3,Strategic Management in the Public Sector,10,Political Management,Operations Management,Cooperation Management,Relevancy of the strategic triangle observed in the case,Implementation phase focuses on cooperation and on operations:,German cooperating partners were not as supportive of new strategic aims,Shift towards international cooperation partners,Strategy was also adapted to the cooperation partners needs, which were anticipated or not,Increased flexibility and new and higher quality services,Competencies were seen not being matched with acquisition objectives, but also not with strategic aims.,Surprising little adaption in implementation is due to political factors,The political landscape and the environment have not changed drastically since 2005.,Most respondents still see “securing the future” as one of the main themes to be dealt with strategically.,The division manager respondent to this topic: “When everything is going in a good way, we dont hear anything from the political level.”,Main,finding,3,Strategic Management in the Public Sector,11,Summary from case findings,The management dimensions “political” and “cooperation” were dominant during planning,The dimensions “cooperation” and “operations” were dominant during implementation and adaptation,Looking into the long-term future, political factors dominate the strategy discourse,Cooperation and operations dominate the mid-term and short-term time horizon,Value,Overarching,vision,and,strategic,themes,achieved by:,Incremental,expansion,of,value,provided,Interdependency of management activities,Long-term time horizon,Mid-term to short-term time horizon,Political Management,Cooperation,Management,Operations,Management,Conclusions,General conclusions,Building robust alliances internally and externally is the key to strategic success in the public sector,The public manager of today is constantly challenged to provide answers for the constant development and re-adaptation of what and how of the organization,Ownership of strategy by all levels adamant, since adaption of strategy will occur on a,tactical,level,Specific conclusions,The strategic triangle could serve as a consulting, teaching or research tool in the public sector,Benefits,incremental flexibility,reduction of complexity,creates focus,easily communicated and understood.,Drawbacks,focus can shift over time,complexity and breadth of operations is “underrepresented”,Additional planning tools, such as stakeholder mapping (Scholes, 1989), strategy maps (Kaplan & Norton 2005) or the adaptive matrix of Schedler and Siegel (2005) should be used to analyze preconditions and to plan strategy.,Strategic Management in the Public Sector,13,Political Management,Operations Management,Cooperation Management,Tactical Mapping the future?,A proposal: “tactical mapping” as a planning tool to communicate to middle management the incremental fashion in which strategy will be implemented and adapted:,Political Management,Operations,Management,Cooperation,Management,Tactics,1,Tactics,2,Tactics,3,Tactics,1,Tactics,2,Tactics,3,Tactics,1,Tactics,2,Tactics,3,Overarching,vision,and,strategic,themes expressed by:,Tactical,Mapping,As tactical solutions emerge, they are consolidated, coordinated to provide synergies. Tactics can be ranked to focus resources.,14,Many thanks to:,Professor Dr. Jonathan Smith, Senior Lecturer at the Ashcroft International Business School, Anglia Ruskin University Cambridge,Dr. John Philip Siegel from Potsdam University, research associate at the chair of Public and Nonprofit Management.,The managers of the Training Center for Development Cooperation,Dr. Bernd Krewer, the division manager,And to you thank you for your attention!,Please contact me for further questions, research findings or planned use of the strategic triangle:,luke.mcbainweb.de,Strategic Management in the Public Sector,15,
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