Public Management and Administration - Owen E.hughes
Public Management and Administration - Owen E.hughes
Public Management and Administration - Owen E.hughes
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140 <strong>Public</strong> <strong>Management</strong> <strong>and</strong> <strong>Administration</strong><br />
A public organization is essentially no different from one in the private sector<br />
when it comes to assessing its external environment, or in having a need to do so.<br />
There are differences of emphasis as Nutt <strong>and</strong> Backoff argue (1992, p. 180):<br />
The emphasis in the content of SWOTs varies markedly across sectors. First, firms have<br />
tight markets <strong>and</strong> weak political linkages. The reverse is true for public <strong>and</strong> third sector<br />
organizations; markets are loosely defined <strong>and</strong> authority systems impose constraints …<br />
Second, firms are pulled toward opportunities <strong>and</strong> public <strong>and</strong> third sector organizations<br />
tend to be driven by threats.<br />
This is a perceptive comment. <strong>Public</strong> organizations may be more reactive than<br />
pro-active <strong>and</strong> respond more to threats, which means an expectation of a differing<br />
result from strategic processes.<br />
Fifthly, the internal operations of the organization are also critical to its existence.<br />
If it has internal weaknesses it becomes harder to justify its continued<br />
operation in an atmosphere in which any excuse is used for making cuts. The<br />
internal environment assessment requires a thorough assessment of the capability<br />
of staff. This would include the quality <strong>and</strong> qualifications of staff, age,<br />
sex or other profiles in the hierarchy, departure rates, <strong>and</strong> less quantifiable<br />
measures including the state of morale. There should be an assessment of the<br />
extent of resources, particularly financial, but also the systems that are used,<br />
notably information systems, accounting systems <strong>and</strong> so on.<br />
Despite any good plan requiring thorough organizational self-examination,<br />
it is usually difficult for an organization to look at itself in a critical way, as this<br />
can be construed as a direct criticism of the current leadership. Being able to<br />
do so is necessary for a meaningful strategic plan. Any of these internal factors<br />
may impinge on the organization’s ability to fulfil its strategic mission <strong>and</strong><br />
objectives, <strong>and</strong> so must be examined closely.<br />
Sixthly, strategic issues should surface as a result of the environmental scanning<br />
activity. This would deal with any weaknesses identified inside the organization,<br />
threats from outside, or opportunities for the future. It may be possible<br />
to offer new services or new approaches to service delivery. Strategic issues<br />
should be separated from day-to-day ones in some way <strong>and</strong> need to be listed as<br />
they would form the basis of strategies to be formulated <strong>and</strong> implemented. An<br />
example of a strategic issue could be a major staffing problem, say, in a tax<br />
office where senior, experienced accounting staff are leaving for the private<br />
sector at far higher salaries. Another might be that a particular good or service<br />
being provided is now being contracted out to the private sector in some other<br />
jurisdiction, so that privatization might be considered in future. A strategic<br />
issue is a major issue, one that affects the organization’s future or ability to<br />
function.<br />
Seventhly, formulating strategies – sometimes referred to as deriving an<br />
‘action plan’ or ‘action programme’ (Hax <strong>and</strong> Majluf, 1996) – is where the<br />
strategic issues deriving from the previous steps are put into effect. In this step<br />
strategies ‘are formulated to achieve the selected targets’ <strong>and</strong>, in practice, they