Mark H. Moore October, 2012

 Concepts Developed for Government Managers  ◦ ◦ ◦ Controlled and Deployed Collectively Owned Assets of State: Tax Dollars State Authority “Public Spirt”  ◦ ◦ ◦ ◦ Accountable to “Public” For Effective, Value Creating Use Elected Representatives Courts Court of Public Opinion (Interest Groups, Media) Citizens, Taxpayers, Customers/Clients

 Created at Time When Private Management Concepts Were Migrating to Public Sector ◦ ◦ ◦ Customer Oriented Government Performance Metrics Pay for Performance  Big Concept from Private Sector Did Not Move: The Idea of Corporate Strategy ◦ ◦ ◦ Managers Responsible for Positioning Organizations in Complex, Dynamic Environments Discretion Over Ends as Well as Means Innovativeness and Learning Key to Success

 Conventional Meanings of “Strategic” ◦ ◦ ◦ Long Run Rather than Short Run Ends Rather than Means Big Rather than Small  Meaning of Strategic at HBS: ◦ ◦ Fitted to Environment Path From Present to Future

 Environment of Private Manager: ◦ ◦ ◦ Customers (Individuals with Desires, Money) Competitors Shareholders and Other Investors  ◦ ◦ ◦ ◦ ◦ Environment of Government Manager Elected Representatives of People Citizens and Their Aspirations Clients of Government Organizations Social Conditions to be Ameliorated Partners and Collaborators in Producing Social Results

 The Market : Private Desires and Individual Consumption ◦ Customers with Desires and Money ◦ Investors ◦ Competitors Private Environment  The Polity : Public Aspirations and Social Conditions ◦ Clients with Needs and Rights ◦ Citizens/Taxpayers ◦ Partners Public Environment

 The Authorizing Environment ◦ ◦ Simple v. Complex Stable v. Dynamic  The Task Environment ◦ ◦ Simple v. Complex Stable v. Dynamic  How Cope?

 The Strategic Triangle Environments : A Framework for Positioning Public Enterprises in Complex  The Authorizing Environment :Sources of Legitimacy and Support for a Public Enterprise  The Task Environment : Social Conditions to Be Ameliorated by Public Action  The Public Value Chain : Building Operational Capacity to Deliver Desired Results

Legitimacy & Support Operational Capabilities Public Value

 Analytic Concept Serving a Function Similar to that Served by Porter’s “Five Forces,” or McKinsey’s “Six Circles” in the Private Sector  Namely, to Help Managers Find a “Fit” Between the Environment they Face, and the Enterprise they Lead.

 Need to Simplify for the Public Sector, so Got it Down to Three Circles!

 To help public managers position their enterprises in complex, dynamic environments  To focus and distribute managerial attention across their “Task Environment” and their “Authorizing Environment”  To help them envision a sustainable Public Value proposition to be pursued

      Social Conditions to be Ameliorated Substantive Problems to Be Solved Wants to Be Satisfied Needs to be Met Rights to Be Vindicated Opportunities to be Exploited

Legitimacy & Support Operational Capabilities

Task Environment

Public Value

to be Ameliorated)

 To Create Public Value is the point of all managerial activity  Public Value is created when managers transform social conditions in collectively desired directions  The “Task Environment” consists of the particular social conditions public managers seek to change  Demonstrations of Public Value creation lie in evidence showing changes in social conditions  Problem: Not everyone sees Public Value in the same way

Definition:

Actors from whom manager formally needs authorization and resources to survive and be effective Or, those other actors who can influence the formal actors

Courts Elected Legislature Interest Groups Media Citizens Taxpayers Prime Minister/Premier Minister Dept Head Central Agencies Public Manager Staff Clients

Legitimacy & Support

Authorizing Environment

Operational Capabilities Public Value

Assets and Capabilities Entrusted to Manager (Plus Those Required to Achieve the Desired Results That Manager Can Influence)

Process by Which Fungible Assets Like Money, Labor, Ideas, etc. Are Deployed to Produce Particular Results

Organization Inputs Activities Processes Procedures Programs Outputs Partners and Co-Producers C L I E N T S A T I I S F A C T O N O U T C O M E S

Legitimacy & Support Operational Capabilities Public Value

Legitimacy & Support Operational Capabilities Public Value

Touch all three bases!

Applying to Our Situation

    Useful to Start with Operational Capacity Sitting in the Room Representatives of Many Different Arts Organizations, Their Sponsors and Authorizers, Their Suppliers Each Organization has its Own Strategic Triangle But Together You are an “Organizational Field,” or an “Industry,” or a “Community,” or an “Association,” or Perhaps a “Movement”

 To Some Degree, You Compete with One Another Just as Firms in the Same Industry Do  But You Also Collaborate with Respect to Creating Space in Society for Industry as a Whole  Mix of Competition/Collaboration May Depend on State of Industry Development

 As Formal Organizations, You Represent the Tip of the Iceberg of Artistic Engagement and Activity  Natural to Think That Path of Development of Industry as a Whole is to Build Audience  ◦ ◦ But Individuals Participate in Art in Three Different Capacities ◦ Audience for Arts Producers of Art Sponsors of Art   Likely That These are Related to One Another Likely That There are Tiers of These Relationships

 Perhaps Public Value is Being Created Not Just at the End of the Value Chain, but all Along it as Individuals Support, Produce, and View Art Sponsors Artists Audience  And Not Only at Peak, But In Depths

High Art Low Art Mainstream/Non Challenging Symphonies Musical Theater Karaoke School Plays Challenging Performance Art Rap Music

 Build the Industry as a Self-Conscious Community or as a Movement  Target: Maximize Number of Queenslanders Engaged in Arts Activity as Sponsors, Producers or Audiences at All Levels, Across All Sectors  Special Target for Expansion (I): Children  Special Target for Expansion (II): Aging Boomers

 Audience: Enjoyment, Enrichment, Engagement  Artists: Enjoyment, Enrichment, Engagement  Sponsors: Enjoyment, Enrichment, Engagement

 Employment Within Industry  Multiplier Effects on Supporting Services  ◦ ◦ ◦ Indirect Effects on Local Economy Community Attractiveness/Quality of Life Creative Class Tax Base

 Individual Voice/Agency  The Search for Authenticity/Truthfulness  Empathy/Curiosity/Tolerane  Pleasurable/Meaningful Communal Events  ◦ ◦ Social Capital Bonding Bridging

 Individuals Who Want to Be Members of the Arts Community: Sponsors, Artists, Audience  Organizations Who Help Organize Participation and Activities of Arts Community  Elected Officials Who See the Public Value of an Expanded, Enriched Arts Community That Has Deeply Engaged the Community

 The Most Important Reason to Want a Strong Arts Community is that it Creates Citizens Who Participate in a Strong Civic Culture  The Most Important Source of Legitimacy and Support for the Arts Community is the Citizens Who Create and Are Created by It  The Most Important Operational Capacity of the Arts Community is the Desire and Capacity of Human Beings to Create Art

How To Take an “Organizational Field” And Turn it Into a “Community” or a “Movement” to Create Citizens Sustained by the Common Desire to Be Human