strategic management in public sector

8/7/2019 strategic management in public sector

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Strategic Management-DPGMMO

6th & 8th December 2010

Dr Yong Chee Tuan


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Business, Operational, Strategic ?

Business PlanNormally prepared to acquire financing

Operational PlanIdentifies specific results to be accomplished within a

given time period

BudgetExpresses operational plan in financial terms

Strategic PlanIdentifies the basic concept and direction of an

organization


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Defining Strategic Management

Strategic management

Analyses, decisions, and actions an

organization undertakes in order to create

and sustain competitive advantages

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Analysis

Strategic goals

Internal and external environment of the firm

Strategic decisions What industries should we compete in?

How should we compete in those

industries?

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Actions

Allocate necessary resources

Design the organization to bring intended

strategies to reality

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Two Fundamental Questions

1. How should we

compete in order to

create competitive

advantages in the

marketplace?

2. How can we create

competitive

advantages in the

marketplace that are

unique, valuable,

and difficult for rivals

to copy or

substitute?

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Key Attributes of Strategic Management

1. Directs the organization toward overall

goals and objectives

2. Includes multiple stakeholders in decision

making

3. Needs to incorporate short-term and

long-term perspectives

4. Recognizes trade-offs between efficiencyand effectiveness

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Strategic Management Process

Intended strategy

Decisions are determined only by analysis

Realized strategy

Decisions are determined by both analysisand unforeseen environmental

developments, unanticipated resource

constraints, and/or changes in managerial

preferences

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WaitThis is not the public sector

perspective!

Ya, there is competitiveness, but the

roles of a public sector organisation are

evolving.

New public management scholars areusing the business approaches, but the

existing systems/models/functions have

not changed

A lot of modifications are needed here!


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Strategic Management: Why?

In a comfortable position/situation

Believe the future (at least for 10 years) is also

promising with abundant resources & outputs

Enjoy minimum divides & progressive living

standards- stakeholders are satisfied

Sheltered by global crisis, international

disputes & regional instability


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Strategic Management: Why not?

In crisis- natural or otherwise events

The paths are already determined

The resources have been assigned When Operations plan is required, not the

strategic/tactical plan


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RKN Objectives

Sales Plan

a) Improve quality of life of the people;

b) Maximise the economic utilization of national resources;

c) Develop non-oil industries;

d) Accelerate human resources development to meet countrys

demand of increasingly sophisticated economy;

e) Maintain full employment & increase the level of productivity;

f) Maintain a moderate rate of inflation;

g) Foster a more disciplined, self-reliant and caring society;

h) Encourage and nurture the development of Rakyat Melayu asleaders of industry and commerce; and

i) Have a clean and healthy environment.


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1. List the features of the RKN objectives

with relevance to the ministry.

2. How can your organisation contributeto the attainment of each of the RKN

objectives?

1. In terms of a) regulatory, b) infrastructure


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Gap Analysis- Pt 1 and Pt 2

Current Scope ofWork: Which of the

RKN objectives areimpacted by the key

activities of yourorganisation?

How wellwe do?

What other SOWshould MOC do (or

should not do)?

What are the majorbarriers implementing

these revised SOW?

What are the possiblesolutions?

Licensingeg for

b), f)

Regulating

Promoting

Facilitating

Establishing

Providing

Funding projects

Where are we? What next? How?


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Pt3: Vision, Intents & Principles

State your group preferredvision statement

State your preferredstrategic intents and

principles (list not morethan 4)

1

2

3

4


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Strategic Plan: Packaging

A Strategic Plan is formulated based on analyses,

choices, trade-offs, and leadership/management

interactions

The plan may create a culture & system ofoperations; existing culture & system must evolve tosupport & implement the plan

Different degrees of transparency are required to

maintain the plan; communication is crucial!


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Presentation: 15min

You have just been appointed as a strategic planning

consultant by a Ministry.

Provide a framework of an ideal strategic plan for the

said Ministry.

Identify the key issues, boundaries, similar action plans

used in regional economies,etc

Highlight the key features that define the Strategic

Plan as a good plan

strategic management in public sector

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