Strategic planning and management is a vital part of every organization. Any organization that wants to achieve its goals and targets needs to engage in proper strategic management. The readings in this case reflect the concepts of strategic management that apply to state agencies. Strategic planning and management in state corporations enables effective delivery of services to citizens.
The text Understanding and Managing Public Organizations discusses the use of strategic management in state agencies. Rainey (2009) states that there are several concepts for strategic management in state agencies. These frameworks are derived from the Harvard Policy and Stakeholder model of strategic management (Rainey, 2009). The model focuses on processes like strategic issue management, environmental analysis. SWOT analysis, and stakeholder analysis. Key to the implementation of strategic plans is the formation of a strategic management group (SMG). An SMG usually manages the process and should determine who should be involved, how the strategic analysis will take place, and the results that are expected (Rainey, 2009). Typically, the process needs a structured group process that has a facilitator; this is an expert who assists groups to make decisions.
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The author reveals why the SMG is important in the strategic function of state agencies. In the quest to achieve an organization’s mission, the SMG usually examines trends in the operating framework using strategic models (Rainey, 2010). It also performs stakeholder analysis and develops the ideal vision of the organization’s future position. Fundamentally, the SMG works around an organization’s mission statement since it states the general purpose of the firm, as well as its commitments and primary value.
Rainey (2009) also states that aside from setting benchmarks, the SMG examines the weaknesses of an organization and also assess the external environment to highlight the threats and opportunities an organization is facing. By engaging in SWOT analysis, the SMG can come up with a list of strategic issues. Rainey (2009) defines strategic issues as the opposing forces that can have an impact on a firm’s ability to meet its future objectives. By listing these issues, the SMG can develop a plan for managing them so that they do not act as a barrier for the achievement of the organization’s mission (Rainey,2009). This approach is the most common in public organizations. Further, it enables public organizations to circumvent political influence in the development of their strategic objectives.
The article “The Future of Strategic Planning in the Public Sector” builds on the thoughts of the textbook and applies the concepts in a modern context. In a nutshell, Poister (2010) states although strategic planning has become the norm in public organizations, it needs to play a critical role if bureaucrats are to forecast and handle change effectively , as well as consider novel developments that keep increasing due to technology and the forces of globalization. Poister (2010) asserts that the creation of better strategies requires the public sector to shift from strategic planning to the wider concept of strategic management. By making this assertion Poister expands on view which is largely focused on the planning function.
On that note, Poister (2010) elaborates that strategic management in the state agencies entails managing the agency’s overall strategic objectives on an ongoing basis instead of doing it gradually. This means that public managers should ensure that strategies are deployed effectively. To interweave this focus with strategic management, it is important to move from the focus on performance movement from a primary concern with measurement to a more comprehensive process of performance management (Poister, 2010). This will enable public agencies to be more proactive on realizing strategic objectives and goals. Moreover, agencies need to associate ongoing performance with strategic management to create a mutual relationship whereby the focus of strategizing is defining and reinforcing the overall performance, as well as engaging in performance monitoring (Poister, 2010). These suggestions show that strategic management in modern public agencies is not a one-time process; rather, it is an ongoing process that needs constant improvement that enables the agency to adapt to environmental changes.
Public organizations need a change in mindset to enforce the suggestions mentioned above. Poister (2010) states that there is an urgent need for public sector leaders who are organizational entrepreneurs. Such people help to develop visions of success for the future, come up with practical strategies for achieving the visions, and gaining support from the organization’s environment for the strategy (Poister, 2010). Additionally, Poister (2010) states that organizational entrepreneurs should show an appreciation of the importance of basic management systems and show dedication towards using them to effectively deploy strategies and engaging in performance management.
Overall, the two readings illustrate the essential concepts of strategic management in state agencies. Strategic management in this sector is different from that of private firms due to political influence and the need to meet the expectations of the public. Ultimately, state agencies need to cultivate organizational culture as well as leadership at each level that embrace opportunities to manage change and facilitate positive support for organizational strategies. Finally, public agencies need to be aware of its environment to enable the development of a dynamic strategy that fits its operating context.
References
Poister, T. H. (2010). The future of strategic planning in the public sector: Linking strategic management and performance. Public Administration Review , 70 , s246-s254.
Rainey, H. G. (2009). Understanding and managing public organizations . John Wiley & Sons.
