strategy and change in the public sector kevin hinde
TRANSCRIPT
Strategy and Change in the Public Sector
Kevin Hinde
The Vocabulary of Strategy
Introduction
What do you understand by the term ‘Strategy’?
Board Blast your views.
Organisational Strategy
“A strategy is defined as a pattern, of purposes, policies, programmes, actions, decisions, or resource allocations that define what an organisation is, what it does, and why it does it. Strategies can vary by level function, and by time frame.”
– (Bryson, 1995, p.32)
Public sector patterns have been identified as ‘developmental’, ‘political’ or ‘protective’.
Strategy is thus about ‘Fit’: matching resources and capabilities with the environmental context.
The Vocabulary of Strategy
Strategy, Mission and Vision (see next slides) Goal
– General statement of aim or purpose Objectives/Outcomes
– Quantification (if possible) or more precise statement of goal
Issues– Fundamental policy questions or critical challenges that
affect an organisation’s mandate, mission and values; product or service level and mix; clients, users or payers; or costs, financing, organisation, or management. (Bryson, 1995)
Activity: Vocabulary of Strategy and this course
Write down what your goals are in respect of this course.
What outcomes do you expect? What strategies will you employ to achieve
your desired outcomes?
Mission and Vision
Mission
This is usually a statement establishing what the organisation does
It often contains language that sets outs – values – behaviour and – Strategic intent
Missions can change over time but only very slowly. Some say that they are timeless.
Vision
Vision Statements reflect the desired future state of the organisation.
They are sometimes seen to be aspirational even inspirational….”Animating the dream” (Hamel and Prahalad). However, they should embody realism.
NASA’s Mission and Vision Statement
NASA’s Mission is to– Understand and protect our home planet– Explore the universe and search for life– To inspire the next generation of explorers
NASA’s Vision is to– Improve life here.– Extend life to there.– Find life beyond.
Northumbria University’s Mission
The University's mission is to meet the diverse needs of an international learning community and to contribute to society and its economic development through research, excellent teaching and high quality student support.
Northumbria's Vision is to become one of the World's leading teaching and learning Universities, renowned for its innovation and research-based practice and exercising its regional, national and international role through an extensive network of locations and partnerships.
Wigan Council’s Mission Statement
"Within the resources available to it, Wigan Council commits itself to secure quality services, delivered fairly, courteously and responsively by well-informed employees who take pride in what they do.
"Our services are delivered by our employees who are our most valuable and important resource. In making this commitment we recognise that we must continuously invest in them and ensure that they are appropriately trained at a time of rapid change."
North Devon District Council
"To reduce inequalities and remove discrimination and other causes of social exclusion in disadvantaged groups and communities in North Devon in order to ensure that it is a place where everyone has the opportunity to live happily, healthily and prosperously in tolerant, caring communities."
Northumberland County Council’s Vision
“The County Council will ensure that by 2010 Northumberland enjoys a prosperous economy supported by high quality services tailored to meet the particular needs of all the diverse communities of the County. Our communities will be vibrant and sustainable and everyone living here will have the opportunity to achieve their full potential.”
Activity: What is your Organisational Mission?
Draw up a Mission Statement for your organisation. It could identify the
– Main activities;– Geographical boundaries;– The stakeholders and partners;– The desired consequences of the activities;– Values and behaviour;– and strategies
The Ashridge Management Centre says that an organisation has a mission when its ‘strategy matches its culture’.
Strategic Goals and Issues
Strategic Goals Example 1 : Investor’s in People
Goal 1: We will strengthen credibility of Investors in People through research, sharing knowledge and by producing evidence of the relationship between Investors in People and achieving business success
Goal 2: We will develop the range of products and services available to organisations under the Investors in People brand to ensure that the wide and differing needs of employers are met and best practice is recognised and encouraged.
Goal 3: We will ensure that the reputation and quality of Investors in People and any associated products are maintained and enhanced through effective quality assurance
Goal 4: We will ensure through effective marketing, that Investors in People is positioned as an organisation/business improvement tool. Accessed through a broad range of intermediary and business support organisations to provide benefits to both employers and employees.
Goal 5: We will help partner organisations achieve their objectives and targets to stimulate workforce development
Goal 6: We will be an exemplar employer, and an exemplar Non-departmental Public Body. We will make the best use of the people and financial resources available to us, and we will work with our partners to achieve our vision and strategy.
Source: http://www.iipuk.co.uk/IIP/Internet/AboutUs/VisionAndStrategy/Part2-Overview/default.htm
Strategic Goals Example 2: NSP Cultural Strategy Aims
1. Northumberland will accelerate its renaissance by ensuring it is an attractive and celebrated place in which to live, work, visit and invest by improving its infrastructure and marketing its strengths to the region and beyond. Key Agency: Northumberland County Council
2. Northumberland will become more accessible and inclusive by developing needs-led programmes that allow individuals and communities to fully experience, participate in and benefit from cultural activity. Key Agency: Local Authorities
3. Northumberland will create the conditions in which new or existing organisations and partnerships can empower communities to improve their confidence and well being. Key Agency: Northumberland Strategic Partnership
4. Northumberland will provide an environment in which cultural entrepreneurs can run sustainable businesses. Key Agency: Business Link for Northumberland
5. Northumberland will build an adaptable and highly skilled workforce by raising participation and attainment through high quality cultural education and training. Key Agency: Learning + Skills Council and Local Education Authority
6. Northumberland will use information and communication technologies to help culture to flourish. Key Agency: Northumberland Strategic Partnership
Source: http://www.nsp.org.uk/media/cultural_strategy_lo.pdf
Activity: What are your strategic goals/aims?
List your top 6 to 8 strategic goals for the department/ organisation.
– Don’t forget goals associated with service user satisfaction Performance on innovation Budgetary and income performance
Rank your goals and consider how you perform on your goals relative to similar organisations
Activity: Strategic Issues
Consider a recent strategy and the associated planning process.
List and prioritise the strategic issues that it was intended to deal with?
Did the strategy deal with the intended strategic issues? (score each 0 = failure; 1=neutral; 2 = success)
What factors determined the success or otherwise of the strategy?
What lessons have been learnt from this strategy?
Summary
Reassess the process
Develop an effective implementation process
Establish an effective organisational vision
Review and adopt the strategic plan or plans
Formulate strategies to manage these issues
Identify the strategic issues facing the organisation
Assess the external and internal environments to identify SWOTs (Strengths, Weaknesses, Opportunities and Threats)
Clarify Organisational Mission and Values.
Identify Organisational Mandates
Initiate and agree upon the strategic planning process.
1
10
Typical Public Sector Planning Process
What does it involve?
Formulation Choices Implementation
(Johnson and Scholes (1999))
Analysis Appraisal Action
(Smith (1994))
Can we ever be in control?
Strategic Planning
“A disciplined effort to produce fundamental decisions and actions that shape and guide what an organisation is, what it does, and why it does it”
Bryson (1995, p 4-5) It is concerned with content given by
strategy.
The Benefits of Formal Planning Systems
A structured means of analysis and thinking about strategic problems.
Encouraging questioning and challenging of the taken for granted.
The involvement of people in strategy development.
Contributing to ownership and co-ordination of strategy.
A means of communication of intended strategy. A means of control against agreed objectives.
Dangers and Problems of Formal Planning Systems
The neglect of cultural and political dimensions of organisations.
Delegating responsibility to specialists Failure to achieve ownership of plans Individuals understanding parts rather than the
whole of plans Detail rather than vision Information overload Strategy as `the plan’ The search for the mythical `right strategy’.
10 years
Community StrategyA shared vision for the long term future of Northumberland agreed by
partners across the county
Northumberland
10 years
County Council Vision and ValuesA statement of the County Council’s longer term aspirations and the
values it feels are important to the way it conducts its business
County Council
4 years
Strategic StatementA statement of the County Council’s policy priorities covering the life
of the currently elected Council
Political Administration
3 years
Annual Executive StatementYearly statement by the Executive setting out key development
issues for the County Council over the next 3 years, together with a view on relative priorities in the light of anticipated resources and
Council Tax levels
Executive
1+1 year
Northumberland Performance PlanForward and backward looking plan setting out the County Council’s key priorities, reflecting on performance in the past year and setting
out its plans for improvement in the next year
CountyCouncil
1 year
Directorate Service PlansService delivery plans setting out how Directorates will improve their
services in line with the key priorities of the County Council, supported by detailed operating plans at Divisional/Team level.
Directorates
1 year
Personal Action PlansIndividual work programmes setting out the role every individual plays
in achieving the key priorities of the County Council.
Individuals
NCC’s Strategy Documentation
Activity. Planning
What is your Personal Action Plan for the next 3 months?
Is it realistic? Are you over-stretching yourself or underachieving?
What events/ individuals will determine the success of your plan?
Do others know about or understand your PAP?
Factors Influencing Strategy Development
Intendedstrategy
Unrealisedstrategy
Realisedstrategy
Imposedstrategy
Strategyas outcome
(of cultural andpolitical processes)
Strategy development routes
Factors influencing Strategy development
Where does Strategy come from? THE SNOWFLAKE DIAGRAM
Profile Dominant dimensions
Characteristics
(a) Logical Incremental
Planning incrementalism
Standardised planning procedures Systematic data collection and analyses Constant environmental scanning On-going adjustment of strategy Tentative commitment to strategy Step-by-step, small-scale change
(b) Rational command
Planning Command
Senior figure determines and directs strategy Strong vision or mission Definite and precise objectives Analysis and evaluation of environments Clear plans
I
The Snowflake Diagram (1)
Profile Dominant dimensions
Characteristics
(c) Logical Incremental
Cultural Political Incremental
Bargaining, negotiation and compromise accommodate conflicting interests of groups Powerful groups with control over critical resources more likely to influence strategy Standardised ‘way of doing things’ Routines and procedures embedded in organisational history Deeply rooted beliefs and assumptions Strong resistance to change Gradual adjustments to strategy
(d) Externally dependant
Enforced choice Political
Strategy is imposed by external forces (e.g. legislation, parent organisation) Freedom of choice severely restricted Groups dealing with the environment have greater influence over strategy Political activity within organisation and between environment likely Externally driven strategy
The Snowflake Diagram (2)
Activity: What Factors influence Strategy in your organisation?
You are to work on the ‘snowflake diagram’ activity.
What factors most influence strategy in your organisation?
What factors do you believe should influence how strategy develops in your organisation?
Strategy Development: Public versus Private Sector Scores
Dimension Public Private Significant
Planning 3.92 3.94 NSD
Command 3.97 4.17 S 0.1%
Incremental 4.34 4.39 NSD
Political 4.14 3.82 S0.1%
Cultural 4.26 4.09 S0.1%
Enforced Choice 4.76 3.64 S0.1%
Source: Collier, Fishwick and Johnson (2001) in Johnson and
Scholes (eds.) Exploring Public Sector Strategy.
Strategy Development: Public Sector Scores
Plan Com Inc Pol Cul EC Market Less** More***Less** -- Less*** --NHS Less* -- -- More*** -- --Local -- Less** More*** -- More** More**Gov.Police etc More*** -- -- Less** Less* --Probation -- Less** Less* Less*** -- --
*=S@ 5%; **=S@1%; ** [email protected]% ; -- =NSDAdjusted for hierarchical variations using a weighted average.
Source: Collier, Fishwick and Johnson (2000) in Johnson and Scholes (eds.) Exploring Public Sector Strategy.
Stakeholder Mapping
Stakeholder Mapping- Some Guidelines
Positioning stakeholders relative to specific strategies
Stakeholders may need to be sub-divided Distinguish the role for the individual Identify “political” priorities by:
– plot how stakeholders would line up– plot how stakeholders would need to line up– identify mismatches– include key maintenance activities
Source: Adapted from A. Mendelow, Proceedings of 2nd International Conference on Information Systems, Cambridge, MA, 1991.
A B
C D
Minimaleffort
Keepinformed
Keepsatisfied
Keyplayers
LowLow
HighHigh
POWERPOWER
LEVEL OF INTERESTLEVEL OF INTEREST
LowLow HighHigh
Stakeholder mapping: the power/interest matrix
SOURCES OF POWER (a) Within organisations Hierarchy (formal power),
e.g. autocratic decision making
Influence (informal power), e.g. charismatic leadership
Control of strategic resources, e.g. strategic products
Possession of knowledge/skills, e.g. computer specialists
Control of the environment, e.g. negotiating skills
Involvement in strategy implementation, e.g. by exercising discretion
(b) For external stakeholders Control of strategic
resources, e.g. materials, labour, money
Involvement in strategy implementation, e.g. distribution outlets, agents
Possession of knowledge (skills), e.g. subcontractors
Through internal links, e.g. informal influence
Sources and indicators of power
INDICATORS OF POWER
(a) Within organisations
Status Claim on resources Representation Symbols
(b) For external stakeholders
Status Resource dependence Negotiating arrangements Symbols
Sources and indicators of power
Assessing Interest
More difficult than power. Assess the likely actions not words of various stakeholders.
How high is this strategy on their priorities – are they likely to actively support or oppose this strategy? Or will their interest be short-lived?
Typical StakeholderMaps (i)
Political Battleground
Dream Ticket
Potential Lost Cause
Key Features
Dangers Political Priorities
Political mechanisms
+++
- - -
+++
+++
- - -
- - -
Strong support and opposition
Champions and no powerful opposition
Little support and powerful opposition
Limbo
Complacency
Progress impossible. Other strategies harmed.
Reduce risk by
•supporting followers
•Reducing resistance
•Creating stalemate
Keep stakeholders informed and satisfied.
Change orientation of some stakeholders or modify/abandon strategy
Building resource base; overcoming resistance; ‘divide and rule’
Alliance building and maintenance
Overcoming resistance
Source: Johnson (2001)
Typical StakeholderMaps (ii)
Lone Champion
Dogged Opponent
Political Trap
Key Features
Dangers Political Priorities
Political mechanisms
+
-
???
???
One powerful champion
One powerful opponent
Little support and powerful opposition
Champion is lost
Opponent prevails
Progress impossible. Other strategies harmed.
Keep on board; strengthen support
Change orientation; reduce interest; reduce power; find champion
Change orientation of some stakeholders or modify/abandon strategy
Maintain participation and /or communication; foster interest and momentum for other stakeholders
Overcome resistance; side payments; new priorities; associate strategies with elite; participation/ communication
Keep satisfied; raise their interest through participation/ communication
Source: Johnson (2001)
Typical StakeholderMaps (iii)
Worthy Cause
Political Timebomb
Autocrat’s Dream
Key Features
Dangers Political Priorities
Political mechanisms
+++
+++
- - -
- - -
???
???
Supportive stakeholders –all with little power; no key players
Opponents all with little power
No powerful or interested stakeholders
No levers for adoption
Arrogance incites action /lobbying
Complacency
Find a champion from box B or C
Maintain in Box B
Proceed to implement strategy
Empower stakeholders:
•Help them organise
•Alliance building
•Communication (for lobbying)
Keep informed; achieve compliance
Direction/edict; keep monitoring stakeholder activities
Source: Johnson (2001)
Activity: Stakeholder mapping
Consider a strategy with which you are familiar.
List all the relevant stakeholders. Assess their power and interest using + - or 0. Place them on the stakeholder grid.
Can you identify a map ‘type’? What should be your political priorities for these groups? How would you manage the stakeholders?
Summary so far.
Organisational Highs, Lows and Themes Exercise
Brainstorm your Organisations Highs and Lows over the past x years.
Examples might include: budget issues, schools closure, loss of significant personnel, innovations, etc.
How high were the highs? How low were the lows? Put them on the following chart….
Organisational Highs, Lows and Themes Exercise
1999 Now
5 Years Hence?
2000 2001 2002 2003
Highs
LowsCan you identify SWOT Themes?
Organisational Highs, Lows and Themes Exercise
What opportunities have we had? Which have we taken advantage of, which were we unable to take advantage of, and which have we ignored?
What threats have we had to deal with? Which have we handled successfully, which unsuccessfully, and which have we ignored?
What strengths have we relied upon to deal with the threats and to take advantage of the opportunities? Which have we ignored?
What weaknesses have had in dealing with threats and opportunities? What have been done about them?
Can you see patterns or themes of SWOT over time? How would you like to carry this forward?
Business EthicsCorporate Governance
Organisational purposes
Stakeholders Cultural context
Who should the organisation serve?How should purposes bedetermined?
Which purposes should be prioritised?
Why?
MissionObjectives
Which purposes are prioritised?Why?
Whom does the organisation serve?