Strategic public

management

Strategy implementation (part 1)

Rianne Warsen, november 26th, 2019.
For today:
Strategy implementation
Focus on the internal organization
- Goals and objectives
- Performance measurements and management
- The effects on public professionals
Introduction of the course - the lectures
Wk Date Topic
1 5-11 Setting the scene: traditional PA, NPM and NPG
2 12-11 Strategy and strategic management in public organizations
3 19-11 Strategy formulation and analysis
4 26-11 Strategy implementation: performance & professionals
5 3-12 Strategy implementation: the external environment
6 10-12 Strategy evaluation & public accountability
7 17-12 No class: feedback session
14-01 Exam
17-01 Deadline paper
Introduction of the course - overview
Lecture 1

Lecture 2
Steering
Strategy instruments: SWOT,
stakeholder analysis
analysis

Lecture 3
Steering
elements:
Lecture 6 Mandate,
mission, vision
Strategy Strategy
evaluation formulation

Public accountability Lecture 3

Lecture 4 & 5

Strategy
External: partnerships, networks implementation
and hybrids.
Internal: professionals
and performance
This lecture – strategy implementation
Learning objective 2. Explain strategic public management as a social process that
takes place in both the internal as well as the external environment of public
organizations;

Knowledge:
- What is performance measurement and management?
- What is policy alienation?

Insights:
- Why do performance measurement and management matter?
- How does performance measurement relate to policy alienation?

Apply:
- Be able to define performance indicators relevant for the chosen goals /
objectives as well as assign responsibility to relevant individuals for achieving
these indicators.
Part one. Performance
- Goals and objectives
- Performance measurement and management
Performance?

Mission
Instruments

Vision
Abstract

Concrete
Strategies:
How to address identified strategic issues.

Goals:
Focus points to realize strategies – 3 to 5 year term
Objectives:
Measurable, realistic, feasible – 1 to 2 year term, with targets
Actions:
Tasks to achieve objectives, assign responsibility, accountability, timing

Source: Adaptation based on Bryson (1988) and Desmidt & Heene (2013).
Performance in implementing strategy

To implement the strategy  translate into manageable

proportions:

Goals: concrete focal points (max. 10) the organization pursues in

the next 3-5 years to realize the vision of the organization.

Objectives: short-term targets for each goal. These have to be

measurable, realistic and achievable.

That’s when performance measurement comes into play!

Performance measurement

Performance measurement is considered a “cockpit”

for public managers:

Strategies have been formulated (course)

Now we need to initiate the course, check whether we are still on

the defined route, have enough fuel to meet end point etc.
(measurement instruments)
Why performance measurement?

Very NPM. Doable for the strategic component of the mission statement
But what about the ‘soft’ aspect of the mission statement, the cultural element?
 Performance measurement

Assessing successful design and implementation of a strategic

management capacity in public organizations: Poister & Streib
(2005) based on Vinzant and Vinzant (1996a):

Fin. management

Performance mea/mgt
Performance measurement

In the study of Poister & Streib (2005), in not many cases is:
- Budget tied to strategic priorities
- Performance measures used to track strategic goals and
objectives

Even though these are success factors according to their analysis!

But, performance need not only be measured, but it

also has to be managed!
Performance management?

Mission
Instruments

Vision
Abstract

Concrete
Strategies:
How to address identified strategic issues.

Goals:
Focus points to realize strategies – 3 to 5 year term
Objectives:
Measurable, realistic, feasible – 1 to 2 year term, with targets
Actions:
Tasks to achieve objectives, assign responsibility, accountability, timing

Source: Adaptation based on Bryson (1988) and Desmidt & Heene (2013).
 Performance management

Individual goals

Objectives established for management team members

come from the overall strategy.

Incorporate in evaluations

Central authority holds the manager

Evaluation of the manager is based responsible for implementing the
on accomplishment of the strategic strategy.
goals and objectives.
Assign responsibility

Our manager tries to keep the stakeholders

focused on the strategic goals and objectives.

Department heads/managers
Performance & undesired effects
Performance measurement: mostly quantitative indicators are
defined and used for the implementation of strategic goals and
objectives.

Performance management: the defined indicators are translated

into individual-level objectives, responsibilities and evaluations
of core employees.

But…

Blame Avoidance theory:

No guts no glory - No! Avoid negative press

Are we doing bad? - Invest more! Reform!
Are we doing good? - No need to invest more! No need to reform!
Part two.
Policy alienation of professionals
Another undesired effect
The effects of performance measurement and
management on public professionals

What are the consequences of performance measurement and

management for professionals like Keith?  Registration, evaluation,
quantification…

Risk: professionals become bored/ tired by strategic plans and new

policy. Why should I take this serious? How will this improve my
performance as professional?

Focus on efficiency and effectiveness can cause value conflicts and

conflict with managers!

Professionals: Doctors, professors, teachers, police officers: those

who execute core activities of organization.

https://www.youtube.com/watch?v=IkYUDQCYGHA
Policy alienation - example
Dutch Health Insurance Law (2008)

Within the new health care system

economic values are leading.

The result is that professionals become

more aware of the costs and revenues of
their behavior. This comes at the expense
of acting according to professional
standards.

Less focus on public professionals’ core

task: helping patients.
 Policy alienation

As a doctor, did I have something to say when the policy

was formulated at a central level?

As a doctor, did I have something to say about how the

policy was implemented in my organization?
Outcomes:
As a doctor, was I free to implement the policy in my own Job satisfaction
activities or did I have to follow rigid procedures? Willingness to change…

Negative impact on both!

Will the policy contribute to achieving the social So, a possible strength becomes a
goals of taking care of ill citizens? weakness.

Will the policy contribute to the wellbeing of my actual

patients?
Practice – goals, objectives, and actions

Stockholm

A smart and connected city

What goals, objectives and

actions would you think of
to realize this strategy?
Practice – goals, objectives, and actions

“In order to reach its vision of becoming a smart city, Stockholm will
stimulate, guide and coordinate different digitalization projects. The
strategy for Stockholm as a smart and connected city, together with
the City's upcoming digitalization program, describes how this
should be done. There are already many good local examples from
the City of activities and projects that make the city smarter.
Implementation of the strategy and the digitalization program will
build upon all that is currently done and that has been done in
Stockholm. All new investments should be based on the needs of the
people who live or work in the city – and also those just visiting.

The way forward to make Stockholm a smart and connected city is

innovation, openness and connectivity. And by making the city
sustainable in four areas – economic, ecologic, democratic and
social sustainability – the target is achieved: A Stockholm for all.”
 Practice – goals, objectives, and actions

Waste bins that Main bus lines are

automatically pack prioritized at traffic
the garbage and lights before other
notify when they traffic. Delayed buses
need emptying. are given preference

Eye scanning to identify literacy obstacles of pupils in

school. The project was tested in 2016, where a first
screening of 800 students were successfully performed.
Wrap up
Recap
Performance measurement and management are important in
strategy implementation.

Linking strategic plans to performance measurement and

management illustrates a high degree of strategic management
capacity.

Performance measurement and management can result in blame

avoidance behavior – how are indicators used?

Performance measurement and management can result in policy

alienation, which implies conflict between managers and
professionals.
Next steps assignment
Some tips regarding structure & content:
- Title page (incl. all names & student numbers)
- Executive summary (highlight core elements of your strategy)

Strategic plan: For the mandate, mission, and

values you can make use of
- Introduction (what? why? set the scene) (information about) existing
mandate, mission and values. Do
- Analyze mandate NOT forget to reference properly.

- Define mission and values of the organization Formulate your own vision and do

- Formulate an inspiring vision your own SWOT/ stakeholder

analysis. Don’t copy from an
existing strategic plan!

- Analysis of external/internal environment (stakeholders)

- SWOT-analysis

- Formulate strategies based on your analysis

- Goals & objectives
- Implementation & evaluation actions
Next week
Strategy implementation – part two.
- Hybrid organizations
- Public-private partnerships

Read:
- Joldersma & Winter, 2002
- Warsen et al., 2019