Transcript RUNNING GOVT LIKE BUSINESS: POSTED ON WEBCAMPUS

STRATEGIC MANAGEMENT
AND ACCOUNTABILITY
NOVEMBER 9, 2009
• HOW TO APPLY
STRATEGIC MGT WHICH
IS A BUSINESS
APPROACH TO
GOVERNMENT?
• CAN IT BE DONE?
• WHAT ELEMENTS ARE
KEY TO ITS SUCCESS?
DEFINING STRATEGIC MGT.
• MGT THAT LINKS STRATEGIC
PLANNING TO DAY-TO-DAY
DECISIONMAKING
• SEEKING A FIT BETWEEN AN ORG’S
EXTERNAL AND INTERNAL
ENVIRONMENT
• WHERE DOES THE ORG WANT TO BE
BY A TARGET DATE?
STRATEGIC MGT IS POSSIBLE…
• FURTHER ORG IS FROM HEART OF
ITS POLITICAL LEADERSHIP
• THE MORE SELF-CONTAINED AND
AUTONOMOUS
• THE SMALLER IT IS AS LONG AS IT
HAS CRITICAL MASS
• THE MORE ITS RESULTS ARE
CONSISTENTLY MEASUREABLE
• REGULATORY POWER HELPS
FEATURES OF STRATEGIC
MGT.
• OBJECTIVES TO BE ACHIEVED IN THE
FUTURE – OFTEN WITH VISION STMT.
• TIMEFRAME WHEN OBJECTIVES ACHIEVED
• SYSTEMATIC ANALYSIS OF CURRENT
CIRCUMSTANCES AND CAPABILITIES
• EXAMINE ENVIRONMENT NOW AND IN
FUTURE
• SELECTION OF STRATEGY
• INTEGRATION OF ORG EFFORTS AROUND
THE STRATEGY
RUNNING GOVT LIKE
BUSINESS: POSTED ON
WEBCAMPUS
• WHAT SERVICES SHOULD PUBLIC
SECTOR PROVIDE?
• WHAT SERVICES SHOULD IT
PRODUCE?
• WHAT ROLE DEMOCRATIC
GOVERNANCE?
• WHAT ROLE PUBLIC
ADMINISTRATOR?
QUESTIONS TO THINK
ABOUT. . .
• WHAT IS THE DIFFERENCE BETWEEN A
CITIZENSHIP AND MARKET MODEL OF
GOVERNANCE?
• WHAT IS THE DIFFERENCE BETWEEN GOVT
PRODUCING AND PROVIDING SERVICES?
• WHY ARE ASSUMPTIONS ABOUT PUBLICPRIVATE RELATIONSHIPS IMPORTANT TO
UNDERSTANDING HOW ORGS OPERATE?
• WHAT IS THE ROLE OF THE PUBLIC
MANAGER OPERATING IN A MARKETING
ECONOMY?
RUNNING GOVT LIKE A BUSINESS
OR BUSINESS LIKE A GOVT?
• COMPARING TRADITIONAL CORPORATE
GOVERNANCE TO MODEL CHARTER
GOVERNANCE
• PRINCIPAL AGT VS CORPORATE SOCIAL
RESPONSIBILITY
• INTEGRATED STRATEGY AS PRECURSOR OF NEW
PUBLIC SERVICE
• NET REGULATIONS BUT AWARENESS RAISING,
INSTITUTION BUILDING, PREVENTION AND
ENFORCEMENT
• TRANSPARENCY AND ACCOUNTABILITY AS
IMPORTANT CHARACTERISTICS
RUNNING BUSINESS LIKE A
GOVT: 2004
• PRIVATE SECTOR FIRMS ALSO NEED TO
PROMOTE PRUDENT INVESTMENTS
• RATHERTHAN REGULATION, ORG REFORM
SHOULD CONSIDER INFO DISSEMINATION
AND BALANCING INTERESTS
• CREATE PERMANENT POSITIONS THAT
REPORT DIRECTLY TO THE BOARD?
MOVING ON TO STRATEGIC
MANAGEMENT
• CHAPTER NINE
• DERIVED FROM MILITARY
HERITAGE
• I.D. GOALS  TIMEFRAME 
ANALYZE CIRCUMSTANCES
AND CAPABILITIES  ORG
ENV  SELECT STRATEGY
INTEGRATION OF ORG
EFFORTS AROUND
STRATEGY  EVALUATE
AND ADJUST
METAVALUES AND
ORGANIZATIONAL CHANGE
1979
• ACCEPTANCE OF INQUIRY BASED ON
MUTUAL ACCESSIBILITY AND OPEN
COMMUNICATION
• EXPANDED CONSCIOUSNESS AND
CHOICE
• COLLABORATIVE AUTHORITY
• MUTUALITY AND SENSE OF COMMUNITY
• AUTHENTICITY IN INTERPERSONAL
RELATIONSHIPS
20 Strategic Management Paradigms: RFP
(Relative Firm Performance)
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Scientific Management
Positive Mental Attitude – Dale Carnegie
Management By Objective – Peter Drucker
Transaction Cost Economies
– Cost of the Transaction
• Principal Agent Theory
• Contingency
– Technology and Task Independence
– Information Flows
– Tension between Differentiation and Integration
• Diversification as a way to reduce risk
• SWOT-FIT
• Dynamic Adaptation or SWOT-Slack
– Keeping Slack resources to quickly adapt to environmental
changes
– Hedbury, Starbuck and Nystrom 1976
Strategic Management Paradigms:
RFP (Relative Firm Performance)
• Resource Based View
– Tangible Resources, Intangible Resources, and Org
Capabilities
• Machiavellian Theory
– Power as the Constant Drive
• Learning Theory (Peter Senge)
– Intuiting, Interpreting, Integrating, Institutionalizing
• Competitive Forces
– External Environment Primary Determinant of Strategy
• Strategic Conflict (Game Theory)
– A Game Based on Behavior of Other Firms
• Evolutionary Theory
– World is too complicated to understand
– Rejects all aspects of Neo-Classical Theory
• Dynamic Capabilities
– Constantly adapting and innovating through development
of skills, knowledge and abilities in organization
Strategic Management Paradigms:
RFP (Relative Firm Performance)
• Industry Organization Economics (IO
Econ)
– Perfect competition, perfect information
and profit maximization
• Structure Chaos
– Silicon Valley and felxible and agile
orgs
• Hope
– Protestant Work Ethic
Work Hard and Good Things Happen
STRATEGIC MANAGEMENT
• MANAGEMENT OF RESOURCES TO
ATTAIN GOAL IN ENTIRETY
• TACTICS = GAINING A PART OF THE
GOAL
• SELECTING PHILOSOPHIES,
POLICIES, PRACTICES TO ACHIEVE
EFFICIENCY AND EFFECTIVNESS
FEATURES OF STRATEGIC
MANAGEMENT
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I.D. OBJECTIVES TO BE ACHIEVED
SET TIME FRAME
SYSTEMATIC ANALYSIS OF S.W.O.T.
ENVIRONMENT NOW AND IN FUTURE
STRATEGY TO ACHIEVE RESULTS BY
WEIGHING ALTERNATIVES
• INTEGRATION OF ORGANIZATION EFFORTS
MATCHING AGENCY
CAPABILITIES AND AGENCY
ENVIRONMENT
• STABLE ENVIRONMENT VS. TURBULENT
• MISMATCH BETWEEN CAPABILITY AND
ENVIRONMENT CAN BE DISASTROUS
• SWOT HELPS US UNDERSTAND
– STRENGTHS AND WEAKNESSES (INTERNAL)
– OPPORTUNITIES AND THREATS (EXTERNAL)
• DEMAND FORECASTING
• FUTURES ANALYSIS
MANAGEMENT BY OBJECTIVES
• 1954-PETER DRUCKER
• MUTUAL IDENTIFICATION BY SUPERIORS
AND SUBORDINATES OF MEASURABLE
GOALS TO BE ACCOMPLISHED BY A SET
TIME BY A TEAM OR INDIVIDUAL
• SUCCINT
• DIRECTIONAL
• TIME LIMITED
• MEASURABLE
FOUR STRATEGIC FACTORS
• PUBLIC-PRIVATE PARADOX
– DIFFERENT BUT ALIKE
– COMPETITIVENESS=U.S. COMPETE WITH
OTHER NATIONS/PRODUCTIVITY
• CLOSE TO CENTER
– BUREAUS
• ORGANIZTIONAL LANGUAGE AND CULTURE
• ORGANIZATIONAL PLACE
– SELF-CONTAINED
– LOCATION TO DECISIONMAKERS
– SMALL
– CONSISTENT MEASUREMENT
– RAISING REVENUE FROM CUSTOMERS
STRATEGIC MANAGEMENT
TOOLS
• BEST PRACTICES
• BENCHMARKING
• MANAGEMENT SCORECARDS
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HUMAN CAPITAL
COMPETITIVE SOURCING
FINANCIAL PERFORMANCE
EXPANDING E-GOVT
BUDGET AND PERFORMANCE INTEGRATION
• OMB’S RED, YELLOW, GREEN CIRCLES
– KEY PRIORITIES
– MOTIVATE ORG. UNITS TO IMPROVE
– TIMELY ASSESSMENTS OF PROGRESS
ORGANIZATIONAL HUMANISM AND THE
NEW PUBLIC ADMINISTRATION
• INDIVIDUALS AS ACTIVE PARTICIPANTS
• HUMAN VALUES SOMETIMES TAKE
PRIORITY OVER ORG VALUES
• CHALLENGING FUNDAMENTAL AND
UNQUESTIONED BELIEFS
– DISCOVERING ANOMOLIES WITHIN
FRAMEWORK OF TRADITIONAL THEORIES
– NEW WAYS OF LOOKING AT PUBLIC ADMIN.
• FROM INWARD LOOK TO PARTNERSHIPS
• FROM INPUTS TO OUTCOMES
• MANAGING DIVESITY WITHIN A UNIFIED PUBLIC
SERVICE
• MANAGERIAL PRAGMATISM
• POLITICAL CONVICTIONS
• MOTIVATING MANAGEMENT INNOVATION IN GOVT
NEW PUBLIC
ADMINISTRATION
• MINNOWBROOK CONF – 1971 – PROPOSES NO COHERENT
APPROACH TO NEW PUBLIC ADMINISTRATION
• ELIMINATING POLITICS-ADMINISTRATION DICHOTOMY
– FROM CLOSED-SYSTEMS TO OPEN
• FROM FACTS TO VALUES
• NOT CHALLENGING POSITIVISM BUT PAYING MORE
ATTENTION TO REFORM OF POSITIVIST SOCIAL SCIENTIST
APPROACHES
• EFFICIENCY SHOULD NOT RULE OUT EQUITY – IMPARTIAL
ADMINISTRATION
• HIERARCHY + CONTROL SHOULD NOT RULE OUT
PARTICIPATIONVS. PARTICIPATION
• KNOWING THAT LEADERSHIP DEPENDS MORE ON SHARED
POWER AND PARTICIPATION THAN HIERARCHY
• ASKING MORE QUESTIONS THAN THERE ARE ANSWERS
• UNDERSTANDING OF LIFE IN PUBLIC ORGANIZATIONS IS
INCOMPLETE. . .
FROM OLD PUBLIC ADMINISTRATION
TO PUBLIC SERVICE
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FOUNDATIONS
HUMAN BEHAVIOR
PUBLIC INTEREST
RESPONSIVENESS
MECHANISMS
ACCOUNTABILITY
ADMINISTRATIVE DISCRETION
ASSUMED ORGANIZATIONAL STRUCTURE
ASSUMED MOTIVATION BY PUBLIC
ADMINISTRATORS AND SERVANTS
The Challenge of Accountability
Chapter 5
• Constitutional and Legal Considerations
– Managerial and Political Approaches Should
Be Compatible
– Oath to Support Constitution
– Personal Liability for Civil Damages if Act in
Contravention of Constitution
• Obsessive Accountability
• Avoiding Accountability
Honor, Ethics and Accountability
• Legislative Oversight
– Hearings
– Casework
• Services performed by legislators and their staffs at
the request of and on behalf of constituents
• Blood on Robert McNamara’s Hands – and
Conscience
– Was McNamara ethically justified in keeping
silent about his disillusionment with the Vietnam
War policies for so many years? Is there ever
adequate justification for allowing loyalty to
one’s administrative superior to be greater than
to one’s country?
ACCOUNTABILITY ISN’T SIMPLE
• WHAT ARE WE RESPONSIBLE FOR?
• TO WHOM ARE WE ACCOUNTABLE?
• BY WHAT MEANS WILL WE ACHIEVE
OUTCOMES AND BE ACCOUNTABLE
FOR THEM?
ACCOUNTABILITY ISN’T SIMPLE
• THE EXTENT TO WHICH ONE MUST
ANSWER TO A HIGHER AUTHORITY
– LEGAL OR ORGANIZATIONAL –
FOR ONE’S ACTIONS
– WHAT ARE WE RESPONSIBLE FOR?
– TO WHOM ARE WE ACCOUNTABLE?
– BY WHAT MEANS WILL WE ACHIEVE
OUTCOMES AND BE ACCOUNTABLE
FOR THEM?
THE CHALLENGE OF
ACCOUNTABILITY
• ANSWERING TO A HIGHER AUTHORITY
– CIVIL DISOBEDIENCE
– APPARTCHIKS IN AMERICA?
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WHO IS ABOVE THE LAW?
WHISTLEBLOWERS WHEN?
ADMINISTRATIVE ACCOUNTABILITY
WHEN IS ACCOUNTABILITY EXCESSIVE?
CONSTITUTIONAL AND LEGAL
RESTRAINTS
SERVING CITIZENS NOT CUSTOMERS
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CIVIC VIRTUE AND DEMOCRATIC CITIZENSHIP
THEORIES OF CITIZENSHIP
THE ROLE OF THE CITIZEN
BUILDING CITIZEN INVOLVEMENT
– FIVE TENETS
• PUBLIC SERVICE AS AN EXTENSION OF
CITIZENSHIP
• NEW PUBLIC MANAGEMENT AND CUSTOMER
SATISFACTION
• NEW PUBLIC SERVICE AND QUALITY CITIZEN
SERVICE
BUILDING CITIZEN
INVOLVEMENT
• ACHIEVE BEST
POLITICAL
OUTCOMES
• SATISFY INTERESTS
OF CITIZENS
• LEGITIMIZE
GOVERNMENT
• DEMOCRATIC
MORALITY
BUILDING
CITIZEN INVOLVEMENT
• ACCESS TO
INFORMATION
• ACCESS TO
DECISIONMAKING
• ABILITY TO OPEN
ISSUES FOR PUBLIC
DISCUSSION
• CONSIDERATION OF
ALL CLAIMS
ASSERTED
DEFINING PUBLIC SERVICE
QUALITY
CARLSON + Schwarz, 1995
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CONVENIENCE
SECURITY
RELIABILITY
PERSONAL ATTENTION
PROBLEM-SOLVING APPROACH
FAIRNESS
FISCAL RESPONSBILITY
CITIZEN INFLUENCE
SEEKING THE PUBLIC INTEREST
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WHAT IS THE PUBLIC INTEREST?
NORMATIVE MODELS
ABOLITIONIST VIEWS
POLITICAL PROCESS THEORIES
SHARED VALUES
OLD AND NEW PUBLIC ADMINISTRATION
AND THE PUBLIC INTEREST
Key Concepts
• PUBLIC INTEREST AS THE BEST RESPONSE
TO ALL INTERESTS AND CONCEPTS OF
VALUE
• PUBLIC INTEREST IS BEST UNDERSTOOD
THROUGH INDIVIDUAL CHOICES
• PUBLIC INTEREST IS DEFINED BY
POLITICAL PROCESS
• PUBLIC INTEREST AS PUBLIC VALUE
CONSENSUS
NEW PUBLIC SERVICE
• PUBLIC
ADMINISTRATORS
ARE RESPONSIBLE
FOR ENHANCING
CITIZENSHIP AND
SERVING THE
PUBLIC INTEREST
VALUING CITIZENSHIP OVER
ENTRPRENUEURSHIP
• GOVERNANCE
– EXERCISE OF PUBLIC AUTHORITY
• NEW ROLES FOR GOVERNMENT
– LEGAL AND POLITICAL RULES
– PROTECTING ECONOMIC INTERESTS
– ASSURE DEMOCRACY AND SOCIAL EQUITY
• ADMINISTRATION AND ADMINISTRATOR’S ROLES
• SERVICE
• PROCESS
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INVOLVEMENT
INFORMATION
CONSULTATION
ACTIVE PARTICIPATION
DELIBERATIVE DEMOCRACY
• STRUCTURING PUBLIC
DELIBERATION FOR
THOUGHTFULNESS AND ETHICS
• DIALOGUE NOT MONOLOGUE
• DIALOGUE FREE OF DOMINATION
AND DISTORTION
• INSTITUTIONALIZED DISCURSIVE
STRUCTURES
3 CONDITIONS FOR
LEGITIMACY
• EQUALITY AND
SYMMETRY
• ALL HAVE RIGHT
TO QUESTION
• ALL HAVE RIGHTS
TO CHANGE THE
RULES OF
DISCOURSE
PUBLIC ADMINISTRATION
AND CONSTITUTIONAL
RIGHTS
• LEGITIMACY
• DIVERSITY AMONG CITIZENRY
• FREEDOM AND LIBERTY
– CHILLING EFFECT
– OVERBREADTH
– LEAST RESTRICTIVE ALTERNATIVE
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PROPERTY RIGHTS
DUE PROCESS
INDIVIDUALITY
PRIVACY
EQUITY
Strategic Mgt Today: What Does
It Mean?
• Look at one of the
articles on the
Webcampus
under Strategic
Management and
be able to
discuss it in class