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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

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