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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142 <strong>Public</strong> <strong>Management</strong> <strong>and</strong> <strong>Administration</strong><br />
Strategic management aims to integrate the planning function with the overall<br />
management task. Beyond this point, there are differing views as to exactly<br />
what is entailed in strategic management. As in the private sector, strategic<br />
planning involves analysing the environment for opportunities or threats, <strong>and</strong><br />
formulating strategic plans to exploit those opportunities or cope with threats.<br />
In one view, strategic management includes these two aspects of strategic planning<br />
<strong>and</strong> extends strategy development to include strategy implementation <strong>and</strong><br />
strategic control (Montanari, Daneke <strong>and</strong> Bracker, 1989, p. 305). McCaffery<br />
agrees, arguing that strategic management includes strategic planning, but it is<br />
‘a more inclusive concept, emphasizing dynamic interaction with the environment<br />
<strong>and</strong> an incremental methodology that allows for scanning the environment<br />
to choose the target that will yield the most benefit for the effort<br />
expended’ (1989, p. 194).<br />
Bozeman <strong>and</strong> Straussman see four aspects to strategic management. They<br />
argue (1990, pp. 29–30):<br />
As we use the term, strategic management is guided by four principles: (1) concern with<br />
the long term, (2) integration of goals <strong>and</strong> objectives into a coherent hierarchy, (3) recognition<br />
that strategic management <strong>and</strong> planning are not self-implementing, <strong>and</strong> most<br />
important, (4) an external perspective emphasizing not adapting to the environment but<br />
anticipating <strong>and</strong> shaping of environmental change. Strategic public management adds an<br />
additional ingredient: strategic thinking must be cognisant of the exercise of political<br />
authority.<br />
The first two are essentially no different from strategic planning. However, the<br />
need for good implementation <strong>and</strong> the greater interaction with the environment<br />
are persistent themes in the transition to strategic management.<br />
Eadie argues strategic management includes: an action orientation; recognizes<br />
the importance of design; <strong>and</strong> recognizes the importance of the human<br />
factor. An action orientation is to make sure that any document has built-in<br />
processes of implementation, including detailed action plans, schedules,<br />
accountabilities <strong>and</strong> specified costs. Design involves ‘matching desired outcomes<br />
with the processes to achieve them’ so that ‘what an organization accomplishes<br />
through the strategic management process <strong>and</strong> how quickly these accomplishments<br />
are to be achieved are obviously tied to its capability, including human<br />
<strong>and</strong> financial resources’ (Eadie, 1989, p. 171).<br />
From these various perspectives, the changes from planning to management<br />
seem to be, first, greater care in developing the plan <strong>and</strong> what it represents <strong>and</strong>,<br />
secondly, greater attention to implementation.<br />
The strategic management plan<br />
Strategic management includes strategic planning <strong>and</strong> a plan is formulated in<br />
a similar way as before. What the plan means <strong>and</strong> its details do differ from