STRATEGIC MANAGEMENT AND ACCOUNTABILITY

NOVEMBER 9, 2009

• HOW TO APPLY STRATEGIC MGT WHICH IS A BUSINESS APPROACH TO GOVERNMENT?

• CAN IT BE DONE?• WHAT ELEMENTS ARE

KEY TO ITS SUCCESS?

DEFINING STRATEGIC MGT.

• MGT THAT LINKS STRATEGIC PLANNING TO DAY-TO-DAY DECISIONMAKING

• SEEKING A FIT BETWEEN AN ORG’S EXTERNAL AND INTERNAL ENVIRONMENT

• WHERE DOES THE ORG WANT TO BE BY A TARGET DATE?

STRATEGIC MGT IS POSSIBLE…

• FURTHER ORG IS FROM HEART OF ITS POLITICAL LEADERSHIP

• THE MORE SELF-CONTAINED AND AUTONOMOUS

• THE SMALLER IT IS AS LONG AS IT HAS CRITICAL MASS

• THE MORE ITS RESULTS ARE CONSISTENTLY MEASUREABLE

• REGULATORY POWER HELPS

FEATURES OF STRATEGIC MGT.

• OBJECTIVES TO BE ACHIEVED IN THE FUTURE – OFTEN WITH VISION STMT.

• TIMEFRAME WHEN OBJECTIVES ACHIEVED• SYSTEMATIC ANALYSIS OF CURRENT

CIRCUMSTANCES AND CAPABILITIES• EXAMINE ENVIRONMENT NOW AND IN

FUTURE• SELECTION OF STRATEGY• INTEGRATION OF ORG EFFORTS AROUND

THE STRATEGY

RUNNING GOVT LIKE BUSINESS: POSTED ON

WEBCAMPUS

• WHAT SERVICES SHOULD PUBLIC SECTOR PROVIDE?

• WHAT SERVICES SHOULD IT PRODUCE?

• WHAT ROLE DEMOCRATIC GOVERNANCE?

• WHAT ROLE PUBLIC ADMINISTRATOR?

QUESTIONS TO THINK ABOUT. . .

• WHAT IS THE DIFFERENCE BETWEEN A CITIZENSHIP AND MARKET MODEL OF GOVERNANCE?

• WHAT IS THE DIFFERENCE BETWEEN GOVT PRODUCING AND PROVIDING SERVICES?

• WHY ARE ASSUMPTIONS ABOUT PUBLIC-PRIVATE RELATIONSHIPS IMPORTANT TO UNDERSTANDING HOW ORGS OPERATE?

• WHAT IS THE ROLE OF THE PUBLIC MANAGER OPERATING IN A MARKETING ECONOMY?

RUNNING GOVT LIKE A BUSINESS OR BUSINESS LIKE A GOVT?

• COMPARING TRADITIONAL CORPORATE GOVERNANCE TO MODEL CHARTER GOVERNANCE

• PRINCIPAL AGT VS CORPORATE SOCIAL RESPONSIBILITY

• INTEGRATED STRATEGY AS PRECURSOR OF NEW PUBLIC SERVICE

• NET REGULATIONS BUT AWARENESS RAISING, INSTITUTION BUILDING, PREVENTION AND ENFORCEMENT

• TRANSPARENCY AND ACCOUNTABILITY AS IMPORTANT CHARACTERISTICS

RUNNING BUSINESS LIKE A GOVT: 2004

• PRIVATE SECTOR FIRMS ALSO NEED TO PROMOTE PRUDENT INVESTMENTS

• RATHERTHAN REGULATION, ORG REFORM SHOULD CONSIDER INFO DISSEMINATION AND BALANCING INTERESTS

• CREATE PERMANENT POSITIONS THAT REPORT DIRECTLY TO THE BOARD?

MOVING ON TO STRATEGIC MANAGEMENT

• CHAPTER NINE• DERIVED FROM MILITARY

HERITAGE• I.D. GOALS TIMEFRAME

ANALYZE CIRCUMSTANCES AND CAPABILITIES ORG ENV SELECT STRATEGY INTEGRATION OF ORG EFFORTS AROUND STRATEGY EVALUATE AND ADJUST

METAVALUES AND ORGANIZATIONAL CHANGE

1979

• ACCEPTANCE OF INQUIRY BASED ON MUTUAL ACCESSIBILITY AND OPEN COMMUNICATION

• EXPANDED CONSCIOUSNESS AND CHOICE

• COLLABORATIVE AUTHORITY• MUTUALITY AND SENSE OF COMMUNITY• AUTHENTICITY IN INTERPERSONAL

RELATIONSHIPS

20 Strategic Management Paradigms: RFP (Relative Firm Performance)

• Scientific Management• Positive Mental Attitude – Dale Carnegie• Management By Objective – Peter Drucker• Transaction Cost Economies

– Cost of the Transaction• Principal Agent Theory• Contingency

– Technology and Task Independence– Information Flows– Tension between Differentiation and Integration

• Diversification as a way to reduce risk• SWOT-FIT• Dynamic Adaptation or SWOT-Slack

– Keeping Slack resources to quickly adapt to environmental changes

– Hedbury, Starbuck and Nystrom 1976

Strategic Management Paradigms: RFP (Relative Firm Performance)

• Resource Based View– Tangible Resources, Intangible Resources, and Org

Capabilities• Machiavellian Theory

– Power as the Constant Drive• Learning Theory (Peter Senge)

– Intuiting, Interpreting, Integrating, Institutionalizing• Competitive Forces

– External Environment Primary Determinant of Strategy• Strategic Conflict (Game Theory)

– A Game Based on Behavior of Other Firms• Evolutionary Theory

– World is too complicated to understand – Rejects all aspects of Neo-Classical Theory

• Dynamic Capabilities– Constantly adapting and innovating through development

of skills, knowledge and abilities in organization

Strategic Management Paradigms: RFP (Relative Firm Performance)

• Industry Organization Economics (IO Econ)– Perfect competition, perfect information

and profit maximization

• Structure Chaos– Silicon Valley and felxible and agile

orgs

• Hope– Protestant Work Ethic

Work Hard and Good Things Happen

STRATEGIC MANAGEMENT

• MANAGEMENT OF RESOURCES TO ATTAIN GOAL IN ENTIRETY

• TACTICS = GAINING A PART OF THE GOAL

• SELECTING PHILOSOPHIES, POLICIES, PRACTICES TO ACHIEVE EFFICIENCY AND EFFECTIVNESS

FEATURES OF STRATEGIC MANAGEMENT

• I.D. OBJECTIVES TO BE ACHIEVED• SET TIME FRAME• SYSTEMATIC ANALYSIS OF S.W.O.T.• ENVIRONMENT NOW AND IN FUTURE• STRATEGY TO ACHIEVE RESULTS BY

WEIGHING ALTERNATIVES• INTEGRATION OF ORGANIZATION EFFORTS

MATCHING AGENCY CAPABILITIES AND AGENCY

ENVIRONMENT• STABLE ENVIRONMENT VS. TURBULENT• MISMATCH BETWEEN CAPABILITY AND

ENVIRONMENT CAN BE DISASTROUS• SWOT HELPS US UNDERSTAND

– STRENGTHS AND WEAKNESSES (INTERNAL)– OPPORTUNITIES AND THREATS (EXTERNAL)

• DEMAND FORECASTING• FUTURES ANALYSIS

MANAGEMENT BY OBJECTIVES

• 1954-PETER DRUCKER• MUTUAL IDENTIFICATION BY SUPERIORS

AND SUBORDINATES OF MEASURABLE GOALS TO BE ACCOMPLISHED BY A SET TIME BY A TEAM OR INDIVIDUAL

• SUCCINT• DIRECTIONAL• TIME LIMITED• MEASURABLE

FOUR STRATEGIC FACTORS• PUBLIC-PRIVATE PARADOX

– DIFFERENT BUT ALIKE– COMPETITIVENESS=U.S. COMPETE WITH

OTHER NATIONS/PRODUCTIVITY• CLOSE TO CENTER

– BUREAUS• ORGANIZTIONAL LANGUAGE AND CULTURE• ORGANIZATIONAL PLACE

– SELF-CONTAINED– LOCATION TO DECISIONMAKERS– SMALL– CONSISTENT MEASUREMENT– RAISING REVENUE FROM CUSTOMERS

STRATEGIC MANAGEMENT TOOLS

• BEST PRACTICES• BENCHMARKING• MANAGEMENT SCORECARDS

– HUMAN CAPITAL– COMPETITIVE SOURCING– FINANCIAL PERFORMANCE– EXPANDING E-GOVT– BUDGET AND PERFORMANCE INTEGRATION

• OMB’S RED, YELLOW, GREEN CIRCLES– KEY PRIORITIES– MOTIVATE ORG. UNITS TO IMPROVE– TIMELY ASSESSMENTS OF PROGRESS

ORGANIZATIONAL HUMANISM AND THE NEW PUBLIC ADMINISTRATION

• INDIVIDUALS AS ACTIVE PARTICIPANTS• HUMAN VALUES SOMETIMES TAKE

PRIORITY OVER ORG VALUES• CHALLENGING FUNDAMENTAL AND

UNQUESTIONED BELIEFS– DISCOVERING ANOMOLIES WITHIN

FRAMEWORK OF TRADITIONAL THEORIES– NEW WAYS OF LOOKING AT PUBLIC ADMIN.

• FROM INWARD LOOK TO PARTNERSHIPS• FROM INPUTS TO OUTCOMES• MANAGING DIVESITY WITHIN A UNIFIED PUBLIC

SERVICE• MANAGERIAL PRAGMATISM• POLITICAL CONVICTIONS• MOTIVATING MANAGEMENT INNOVATION IN GOVT

NEW PUBLIC ADMINISTRATION

• MINNOWBROOK CONF – 1971 – PROPOSES NO COHERENT APPROACH TO NEW PUBLIC ADMINISTRATION

• ELIMINATING POLITICS-ADMINISTRATION DICHOTOMY– FROM CLOSED-SYSTEMS TO OPEN

• FROM FACTS TO VALUES • NOT CHALLENGING POSITIVISM BUT PAYING MORE

ATTENTION TO REFORM OF POSITIVIST SOCIAL SCIENTIST APPROACHES

• EFFICIENCY SHOULD NOT RULE OUT EQUITY – IMPARTIAL ADMINISTRATION

• HIERARCHY + CONTROL SHOULD NOT RULE OUT PARTICIPATIONVS. PARTICIPATION

• KNOWING THAT LEADERSHIP DEPENDS MORE ON SHARED POWER AND PARTICIPATION THAN HIERARCHY

• ASKING MORE QUESTIONS THAN THERE ARE ANSWERS• UNDERSTANDING OF LIFE IN PUBLIC ORGANIZATIONS IS

INCOMPLETE. . .

FROM OLD PUBLIC ADMINISTRATION TO PUBLIC SERVICE

• FOUNDATIONS• HUMAN BEHAVIOR• PUBLIC INTEREST• RESPONSIVENESS• MECHANISMS• ACCOUNTABILITY• ADMINISTRATIVE DISCRETION• ASSUMED ORGANIZATIONAL STRUCTURE• ASSUMED MOTIVATION BY PUBLIC

ADMINISTRATORS AND SERVANTS

The Challenge of AccountabilityChapter 5

• Constitutional and Legal Considerations– Managerial and Political Approaches Should

Be Compatible– Oath to Support Constitution– Personal Liability for Civil Damages if Act in

Contravention of Constitution

• Obsessive Accountability• Avoiding Accountability

Honor, Ethics and Accountability

• Legislative Oversight– Hearings– Casework

• Services performed by legislators and their staffs at the request of and on behalf of constituents

• Blood on Robert McNamara’s Hands – and Conscience

– Was McNamara ethically justified in keeping silent about his disillusionment with the Vietnam War policies for so many years? Is there ever adequate justification for allowing loyalty to one’s administrative superior to be greater than to one’s country?

ACCOUNTABILITY ISN’T SIMPLE

• WHAT ARE WE RESPONSIBLE FOR?

• TO WHOM ARE WE ACCOUNTABLE?

• BY WHAT MEANS WILL WE ACHIEVE OUTCOMES AND BE ACCOUNTABLE FOR THEM?

ACCOUNTABILITY ISN’T SIMPLE

• THE EXTENT TO WHICH ONE MUST ANSWER TO A HIGHER AUTHORITY – LEGAL OR ORGANIZATIONAL – FOR ONE’S ACTIONS– WHAT ARE WE RESPONSIBLE FOR?– TO WHOM ARE WE ACCOUNTABLE?– BY WHAT MEANS WILL WE ACHIEVE

OUTCOMES AND BE ACCOUNTABLE FOR THEM?

THE CHALLENGE OF ACCOUNTABILITY

• ANSWERING TO A HIGHER AUTHORITY– CIVIL DISOBEDIENCE– APPARTCHIKS IN AMERICA?

• WHO IS ABOVE THE LAW?• WHISTLEBLOWERS WHEN?• ADMINISTRATIVE ACCOUNTABILITY• WHEN IS ACCOUNTABILITY EXCESSIVE?• CONSTITUTIONAL AND LEGAL

RESTRAINTS

SERVING CITIZENS NOT CUSTOMERS

• CIVIC VIRTUE AND DEMOCRATIC CITIZENSHIP• THEORIES OF CITIZENSHIP• THE ROLE OF THE CITIZEN• BUILDING CITIZEN INVOLVEMENT

– FIVE TENETS

• PUBLIC SERVICE AS AN EXTENSION OF CITIZENSHIP

• NEW PUBLIC MANAGEMENT AND CUSTOMER SATISFACTION

• NEW PUBLIC SERVICE AND QUALITY CITIZEN SERVICE

BUILDING CITIZEN INVOLVEMENT

• ACHIEVE BEST POLITICAL OUTCOMES

• SATISFY INTERESTS OF CITIZENS

• LEGITIMIZE GOVERNMENT

• DEMOCRATIC MORALITY

BUILDING CITIZEN INVOLVEMENT

• ACCESS TO INFORMATION

• ACCESS TO DECISIONMAKING

• ABILITY TO OPEN ISSUES FOR PUBLIC DISCUSSION

• CONSIDERATION OF ALL CLAIMS ASSERTED

DEFINING PUBLIC SERVICE QUALITYCARLSON + Schwarz, 1995

• CONVENIENCE• SECURITY• RELIABILITY• PERSONAL ATTENTION• PROBLEM-SOLVING APPROACH• FAIRNESS• FISCAL RESPONSBILITY• CITIZEN INFLUENCE

SEEKING THE PUBLIC INTEREST

• WHAT IS THE PUBLIC INTEREST?• NORMATIVE MODELS• ABOLITIONIST VIEWS• POLITICAL PROCESS THEORIES• SHARED VALUES• OLD AND NEW PUBLIC ADMINISTRATION

AND THE PUBLIC INTEREST

Key Concepts

• PUBLIC INTEREST AS THE BEST RESPONSE TO ALL INTERESTS AND CONCEPTS OF VALUE

• PUBLIC INTEREST IS BEST UNDERSTOOD THROUGH INDIVIDUAL CHOICES

• PUBLIC INTEREST IS DEFINED BY POLITICAL PROCESS

• PUBLIC INTEREST AS PUBLIC VALUE CONSENSUS

NEW PUBLIC SERVICE

• PUBLIC ADMINISTRATORS ARE RESPONSIBLE FOR ENHANCING CITIZENSHIP AND SERVING THE PUBLIC INTEREST

VALUING CITIZENSHIP OVER ENTRPRENUEURSHIP

• GOVERNANCE – EXERCISE OF PUBLIC AUTHORITY

• NEW ROLES FOR GOVERNMENT– LEGAL AND POLITICAL RULES

– PROTECTING ECONOMIC INTERESTS

– ASSURE DEMOCRACY AND SOCIAL EQUITY

• ADMINISTRATION AND ADMINISTRATOR’S ROLES• SERVICE• PROCESS

– INVOLVEMENT

– INFORMATION

– CONSULTATION

– ACTIVE PARTICIPATION

DELIBERATIVE DEMOCRACY

• STRUCTURING PUBLIC DELIBERATION FOR THOUGHTFULNESS AND ETHICS

• DIALOGUE NOT MONOLOGUE• DIALOGUE FREE OF DOMINATION

AND DISTORTION• INSTITUTIONALIZED DISCURSIVE

STRUCTURES

3 CONDITIONS FOR LEGITIMACY

• EQUALITY AND SYMMETRY

• ALL HAVE RIGHT TO QUESTION

• ALL HAVE RIGHTS TO CHANGE THE RULES OF DISCOURSE

PUBLIC ADMINISTRATION AND CONSTITUTIONAL

RIGHTS• LEGITIMACY• DIVERSITY AMONG CITIZENRY• FREEDOM AND LIBERTY

– CHILLING EFFECT– OVERBREADTH– LEAST RESTRICTIVE ALTERNATIVE

• PROPERTY RIGHTS• DUE PROCESS• INDIVIDUALITY• PRIVACY• EQUITY

Strategic Mgt Today: What Does It Mean?

• Look at one of the articles on the Webcampus under Strategic Management and be able to discuss it in class