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Strategic Management Strategic Management of of

Local GovernmentLocal Government

Reported by John C.T. KoJune 23, 2005

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Framework of Organization Development in Local Government

Structure of the LGU

Process in the LGU

Culture ofthe LGU

LGUStrategies

Organizational set-up and roles linkages

Organizational values norms and

traditions management of

culture

Communication decision-making problem-solving leadership and

authority

Strategic managementOrganizational

philosophyStrategic action

Organization Development

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1. Introduction & Definitions 2. Strategizing for Modern Challenges 3. Planning the Process 4. Summary

Outline of the Presentation

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1. Introduction & Definitions

☆However the term STRATEGIC MANAGEMENT should encompass SP. Strategic management focuses not on the preparation of planning documents, but rather on developing and managing the organization’s capacity to engage in a continuous interactive process of assessing and adjusting the fit between the organization’s mission, environment and operations, and making the best use of its strengths.

What is Strategic Management?In literature, strategic management strategic planning, ≒mission modeling, performance improvement process, visioning strategic thinking etc.

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General Purposes of LGs

• Provinces– to serve as a dynamic mechanism for developmental process & effective governance of LGUs within its territorial jurisdiction;• Cities– to serve as a general-purpose government for the coordination & delivery of basic, regular & direct services & effective governance of the inhabitants within its territorial jurisdiction;• Municipalities – same as above.

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Development Virtues of LGs

They have great potential for:• defining local needs and conditions;• managing local resources more effectively;• putting government closer to people;• making planning responsive;•ensuring democratic accountability; and • instituting popular participation.

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LGUOperations

Strategies Environment

2. Strategizing for Modern Challenges

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Key Variables of Strategic Document

1. Vision

2. Mission / Purpose / Goals

3. Core Work Values

4. Internal & External Environment

5. Stakeholder Analysis

6. Core Strategies / Strategic Plans

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Elements of Strategic Management

Environmental Analysis•General Environment•Operating Environment•Directions for Development

Strategic History

CurrentStrategy

Organizational Analysis•Resources•Values•Culture•Structure

Chosen Strategy•Goals•Policies•Programs

RealizedStrategy

Opportunities

Threats

Strengths

Weakness

StakeholderAnalysis

StrategicVision

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3. Planning the Process:How does one Begin?

Prerequisites for a Successful Strategy Planning:

1. Full participation and commitment by everyone

2. Recognition of the change and improvement by everyone

3. People’s values and capabilities should be considered

4. Contribution of everyone’s mental models to LGU

5. Willingness of everyone to make LGU’s vision fulfilled

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Preparing the Strategic Document:Getting Down to It.

Documents prepared for workshop consultation:

LGU’s existing development plans; Outputs from a previous strategic management

workshop; Annual or quarterly reports; Project monitoring reports; The Budget; and Any useful and related material.

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Steps in Preparing Strategic Document

1. Vision Setting2. Developing Mission Statement3. Articulating Core Work Values4. Environmental Scanning or Analysis5. Stakeholder Analysis6. Development of Core Strategies

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Vision Setting:Can You See Your LGU’s Future?

1. Specific date;2. LGU’s customers;3. LGU’s values and culture;4. LGU’s core competencies & capabilities;5. The geographic arena;6. LGU history, environment, competitors;7. The ethos of public service;8. Is it really the ideal you want?;9. Why the LGU exists;10. The LGU’s level of leadership/excellence/service/;11. Quality; and 12. What the LGU is known for, its reputation/image

Vision boundaries

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Developing Mission Statement:What the LGU is at

Contents of Mission Statement: WHAT needs do we respond to? WHY do we exist? WHOM do we serve? WHO are our clients? WHAT do we do or produce? HOW do we intend to carry out our vision?

Statement example: Our mission is to serve…(clients) with the…(products

& Services) in order to achieve…(why we exist).

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Articulating Core Work Values:Laying it Down on the Line

Column I Column 2The way it is

now it should beThe way you

think1. Long term strategic

perspective2. Energizing leadership3. Innovation4. Risk taking5. and so on

Values exercise

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Environmental Scanning or Analysis:Looking Very Hard

Internal Condition(of LGU)

External Condition(General LGU environment)

Strengths1. Existence of harbor2. High quality labor3. Industrial Cluster

Opportunities1. Demand for OFW2. Global market linkage3. Technology outsourcing

Weaknesses1. Power supply shortage2. Air & water pollution3. Location inaccessibility

Threats1. Natural disasters2. Economic recession3. Terrorism

SWOT Analysis

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Situation Analysis/Environmental Scanning

Step 1

Step 2

Step 3

Step 4

Step 5

Strategic Position

Scan the environmentAssess nature of environment

Identify key environment forces

Identify strengths & weaknesses

Identify key opportunities & threats

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The LGU’s residents

Civil organizations

Political groups

National government Private business partners Special interest groups

Employees of the LGU

Labor unions

Consumer advocate groupsAdjacent cities & towns

LocalGovernment

Unit

Stakeholder Analysis:Who cares about the LGU?

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Development of Core Strategies:The LGU’s Work Begins

Time Frame Responsible Agency

Objectives Strategic Actions Target/Output Indicator

Elements to strategy planning

Commitment

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Summary

Strategic management in LG is an on-going process of strategy formulation, review and re-formulation. It involves clear articulation of people’s personal values and work values, since these determine their commitment on the job; a close view of internal and external circumstances and opportunities; and a well-laid map of strategies to deal with current and future demands of the LGU.

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Thank you!

National Palace Museum,

Taipei, Taiwan