week 3

factors that led to strategic management

  • Assault on the Public sector

  • Changing economic theory

  • Technological change

  • Private sector change and the rise of strategic management

Other - fall of the soviet union

attack on the public sector (factors that influenced it)

  • scale - it was too big

  • method - to much bureaucracy and there were clash of ideologies

  • scope - geetin involved in too many activities

diminishing returns on efficiency againt scale/scope/method

is a gov about morality or stability

“Entrepreneurial governments” ten principles: 

  1. Promote competition between service providers - ranking primary schools for example

  2. Empower citizens by pushing control out of the bureaucracy into the community. 

  3. Measure performance of agencies focusing not on inputs but outcomes. - for example getting after a service like the NHS you get a survey about how it was

  4. Driven by their goals not by rules and regulation

  5. Redefine clients as customers - surveys as well like as univeristies

  6. Prevent problems before they emerge

  7. Put energies into earning money no spending it. 

  8. Decentralise authority 

  9. Prefer market mechanism to bureaucracy 

  10. Focus not simply on providing public services but on catalysing all sectors into action to solve their communities problems

Osborne & Gaebler


Changing economic theory

Embrace of neo-classical economics & public choice theory - neo liberism

Less bureaucracy more markets - encouraging f the free markets

public choice theory

- Principal-agent relationship: A scenario where a principal (e.g., politician) hires an agent (e.g., bureaucrat) to perform tasks due to being too busy.

- Monitoring challenges: The principal cannot perfectly monitor the agent due to being busy, leading to risks such as different interests and asymmetrical information.

- Risk of moral hazards: Occurs when one party takes more risks because another bears the cost, raising concerns about the agent acting in the principal's best interests.

- Emphasis on solutions: Clear contracts, performance assessments, results-based management, and internal competition among units aim to address these concerns.

problems with planning

  • paralysis by analysis

  • organisational resistance

  • ejection of strategic planning

  • isolation


strategic management is long term

3 strategic planning models (find the differerce)

  • olsen and eadie 1980

  • osborne and gaebler 1992

  • Bryson 10-steps


Seminar- Strategically managing a crisis

Bryson 10 step model - in a simpler way

  1. “initiate and agree” on a strategic process (also initiating and agreeing there is a need for change )

  2. whatever innovation should not go against the mandate of the organisation

  3. clarify what you are trying to achieve - values, missions etc

  4. assess the internal and external environment to identify the SWOT

  5. identify what exactly the strategic ssue facing the organisation

  6. formulating strategies that can manage them

  7. review and adopt the plans - policy wind test (trying on a segment of the population for example before applying holistically)

  8. long term goal

  9. developing an effective process of implementation - in stages/phases, segments etc

  10. reassess the strategy and planning process

Bryson model of planning - in a simpler way

  1. first of all having an initial agreement - consultation is important - example of bangledash and hydro dam

  2. clarification and the implications and mandates

  3. mission and values - stakeholder analysis as well

  4. assess the external environment - how they react- hot or cold - feel the temperature

  5. internal assessment - who does what, who can carry out this mandate

  6. identifying key strategic issues

  7. strategy

  8. long term vision - future of the organisation

MAC- migration advice committee