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Student: Blesiou Athina Matricule ULB: 000385529
The future of strategic planning in the public sector:
Linking strategic management & performance
(article summary)
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
Public & not for profit organizations managementBlesiou 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
Public & not for profit organizations managementBlesiou 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
Public & not for profit organizations managementBlesiou 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:
Public & not for profit organizations managementBlesiou Athina
Strategic Planning
Strategic managemen
t
Performance measuremen
t
Performance managemen
t
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
Public & not for profit organizations managementBlesiou 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
Public & not for profit organizations managementBlesiou 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 makingAlthough 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 improvementsStates 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
Public & not for profit organizations managementBlesiou 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
Public & not for profit organizations managementBlesiou Athina
10
Integrating Strategy & Performance Management
Public & not for profit organizations managementBlesiou 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
Public & not for profit organizations managementBlesiou 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
Public & not for profit organizations managementBlesiou Athina
Strategic planning &
management
Performance
management
13
The agencies will face rapid pace of change & increased uncertainties
Summarize - Conclusions
Public & not for profit organizations managementBlesiou 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