Student: Blesiou Athina Matricule ULB: 000385529

The future of strategic planning in the public sector:

Linking strategic management & performance

(article summary)

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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