Strategic Management In The Public Sector

According to Johnsen (2015), strategic management in the public sector became more prominent due to the environmental turbulence during the 1970s, which made traditional planning models obsolete. McInerney and Barrows (2000) viewed these turbulences to include the emergence of global economy, advances in technology, and increased societal demands. Strategic management in the public service has also evolved according to Brudney, Herbert, and Wright (1999), from an initial component of public management reform to a standard tool for the public manager to create value and to shape the organisation (McBain & Smith, 2010) (Nartisa, et al., 2012). Developing strategic plans in the public sector signals according to Kayuni (2016) a positive reform

Poister, Pitts and Edwards (2010) stressed a similar view as they viewed strategic management as an all-encompassing process that integrates the management of an organisation and substantive policy perspectives in a strategic manner and on a continuing basis, with the aim to strengthen the long-term viability and effectiveness of public sector organisations. Nartisa, Putans and Muravska (2012) highlighted that the expected outcome of the strategic management process within both the public and private sectors are theoretically the same and include a strategic plan with clearly formulated vision and achievable goals binding employees at all levels of the organisation. They (Nartisa, et al., 2012), however cautioned that strategy formulation approaches and the usage of this tool in the public service differs from that in the private sector. Minnaar (2010) echoed this difference in that the strategy formulation in the public service is according to him the response to the institutional policy mandate, which response incorporates not only the core functions but also gives practical effect to its

An initial agreement between supporting decision makers signals the beginning of the strategic management process. Ugboro, Obeng, and Spann (2011) stressed also that the adoption of strategic planning in public service is often motivated by the need and desire to set policy and define program direction. This is followed in the second step with the identification of different mandates for all public service departments, agencies or institutions. The mission and values for the organisation are crafted in the third step by taking due cognisance of the needs of stakeholders who have a direct interest in the identification and resolution of strategic issues. Stakeholders in public service encompasses a wide range of people and groups including but not limited to are citizens, taxpayers, service recipients, the governing body, employees, unions, interest groups, political parties, the financial community, and other governments. Since strategic planning according to Bryson and Roering (1987) aims to achieve the best “fit” between an organisation and its environment, the fourth step entails the identification of the external opportunities and threats that the organisation faces whilst the fifth step entails the identification of the organisations internal strengths and weaknesses. Comparing the external environment with mandates is regarded as planning from the outside in