Strategy Intoduction

Realising Service Developments in Health Care
An Introduction to Strategy Development and Strategic Analysis Module 1 of 3
Materials Edited and Prepared by: Peter Morris On behalf on the North West Wales NHS Trust
Ackno ledgements
In the preparation of this manual I gratefully acknowledge the support of my wife Laura and daughters Anna and Emily. Special !ote North West Wales NHS Trust nor any of its agents or partners accept lia!ility for the use or misuse of the information contained within this Training "anual.
"a#le of Contents
Introduction......................................................................................................................................# Some $efinitions % Strategic &ontent 'rocess ( Thinking........................................................# 'utting it all together % What then is Strategy).........................................................................** The 'ractical +uestion, How)...................................................................................................*The $ecisions Are the Same......................................................................................................*Some .undamental +uestions................................................................................................*/ 0elated to "ission ( 1ision..................................................................................................*/ 0elated to &orporate Strategy................................................................................................*/ 0elated to &ompetiti2e Strategy............................................................................................*/ Strategic "anagement...................................................................................................................*# A Summary of the language of Strategic "anagement.............................................................*3 How 'u!lic Sector "anagement $iffers...................................................................................*3 Implications for the 4&ontent5 of 'u!lic Sector Strategic "anagement....................................*6 Implications for the 4'rocesses5 of 'u!lic Sector Strategic "anagement.................................-7 How $oes Strategy $e2elop in 8rganisations).........................................................................-7 Influences on the 'rocess of Strategy $e2elopment in the 'u!lic Sector.................................-Strategy as "anagerial Intent....................................................................................................-The 'lanning $imension........................................................................................................-The &ommand $imension.....................................................................................................-Strategy as the outcome of 8rganisational 'rocesses................................................................-# The 'olitical $imension........................................................................................................-# The &ultural $imension.........................................................................................................-# The Incremental $imension...................................................................................................-# Imposed Strategy, the enforced choice dimension....................................................................-9 &omparison of 'u!lic Sector organisations with the rest of the sample................................-9 E:planation of ;ey $ifferences.............................................................................................-< $ifferences =etween su!>sectors and the pu!lic sector as a whole.......................................-3 Strategy $e2elopment +uestionnaire........................................................................................-? Scoring ;ey.........................................................................................................................../* Scoring $iagram..................................................................................................................../A Word of e:planation...............................................................................................................//
Stage *, Initiate and agree upon the strategic planning process................................................/# Stage -, Identify 8rganisational "andates................................................................................/# Stakeholders.........................................................................................................................../# Stage /, &larify 8rganisational @$epartmentalA "ission and 1alues......................................./9 0ational for de2eloping a mission statement........................................................................./< Elements of a successful "ission Statement........................................................................./3 Stage #, Assess the e:ternal and internal en2ironments to identify SW8Ts @Strengths Weaknesses 8pportunities and ThreatsA.................................................................................../6 Stage 9, Identify the strategic issues facing the organisation..................................................../6 Stage <, .ormulate strategies to manage these issues................................................................#7 Stage 3, 0e2iewing and Adopting the Strategies and 'lan........................................................#7 Stage ?, Esta!lishing an Effecti2e 8rganisational 1ision.........................................................#7 Stage 6, $e2eloping an Effecti2e Implementation 'rocess.......................................................#* Stage *7, 0eassessing Strategies and the Strategic 'lanning 'rocess.......................................#In Summary................................................................................................................................#0eferences..................................................................................................................................#/ Appendi: A % Strategic Analysis @Tools and TechniBuesA Appendi: = % =alanced Scorecard
Introduction
The concept of strategy has !een adopted from the military and adapted for use in !usiness. A re2iew of what noted writers ha2e to say a!out !usiness strategy suggests that the adoption was easy !ecause the adaptation was modest. In !usiness as in the military strategy !ridges the gap !etween policy and tactics. Together strategy and tactics !ridge the gap !etween ends and means. The aim of this part of the programme is to make the concepts of policy strategy tactics ends and means more useful to those who are charged with managing change within and across organisations.
Some Definitions $ Strategic Content% &rocess ' "hinking

Strategy is a term that comes from the Creek strategia meaning Dgeneralship.D In the military strategy often refers to manoeu2ring troops into position !efore the enemy is actually engaged. In this sense strategy refers to the deployment of troops. 8nce the enemy has !een engaged attention shifts to tactics. Here the employment of troops is central. Su!stitute DresourcesD for troops and the transfer of the concept to the !usiness world !egins to take form. Strategy also refers to the means #y hich policy is affected E accounting for ;arl 2on &lausewitF5s statement that war is a continuation of political relations 2ia other means. Ci2en the centuries>old military origins of strategy it seems sensi!le to !egin our e:amination of strategy with the military 2iew. .or that there is no !etter source than =. H. Liddell Hart. Strategy According to =. H. Liddell Hart In his !ook Strategy G*H Sir =asil H. Liddell Hart e:amines wars and !attles from the time of the ancient Creeks through World War II. He concludes that &lausewitF5s definition of military strategy as Dthe art of the employment of !attles as a means to gain the o!Iect of warD suffers from two serious flawsE first this 2iew of military strategy intrudes upon policy and second it makes !attle the only means of achie2ing strategic ends. Liddell Hart o!ser2es that &lausewitF later acknowledged these flaws and then points to what he 2iews as a wiser definition of strategy set forth !y "oltke, Dthe practical adaptation of the means placed at a general5s disposal to the attainment of the o!Iect in 2iew.D In "oltkeJs formulation military strategy is clearly a means to political ends. &oncluding his re2iew of wars policy strategy and tactics Liddell Hart arri2es at this short definition of military strategy, Dthe art of distri!uting and applying military means to fulfil the ends of policy.D $eleting the word DmilitaryD from Liddell Hart5s definition makes it easy to e:port the concept of strategy to the !usiness world. This !rings us to a person considered !y many to !e the father of strategic planning in the !usiness world, Ceorge Steiner a professor of management and one of the founders of The &alifornia "anagement 0e2iew is generally considered a key figure in the origins and de2elopment of strategic planning. His !ook Strategic 'lanning G-H is close to !eing a !i!le on the su!Iect. Ket Steiner does not !other to define strategy e:cept in the notes at the end of his !ook. There he notes that strategy entered the management literature as a way of referring to what one did to counter a competitor5s actual or predicted mo2es. Steiner also points out in his notes that there is
Introduction to Strategy
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2ery little agreement as to the meaning of strategy in the !usiness world. Some of the definitions then in use to which he pointed include the following, ! "! #! 4! $! Strategy is that which top management does that is of great importance to the organiFation. Strategy refers to !asic directional decisions that is to purposes and missions. Strategy consists of the important actions necessary to realiFe these directions. Strategy answers the Buestion, What should the organiFation !e doing) Strategy answers the Buestion, What are the ends we seek and how should we achie2e them)
Steiner was writing in *636 at roughly the mid>point of the rise of strategic planning. 'erhaps the confusion surrounding strategy contri!uted to the demise of strategic planning in the late *6?7s. The rise and su!seBuent fall of strategic planning !rings us to Henry "intF!erg. Henry "intF!erg in his *66# !ook The 0ise and .all of Strategic 'lanning G/H points out that people use DstrategyD in se2eral different ways the most common !eing these four, ! Strategy is a plan a Dhow D a means of getting from here to there. Strategy is a pattern in actions over timeE for e:ample a company that regularly markets 2ery e:pensi2e products is using a Dhigh endD strategy. This pattern in decisions and actions defines what "intF!erg called DrealiFedD or emergent strategy. "! Strategy is positionE that is it reflects decisions to offer particular products or ser2ices in particular markets. #! Strategy is perspective that is 2ision and direction. "intF!erg argues that strategy emerges o2er time as intentions collide with and accommodate a changing reality. Thus one might start with a perspecti2e and conclude that it calls for a certain position which is to !e achie2ed !y way of a carefully crafted plan with the e2entual outcome and strategy reflected in a pattern e2ident in decisions and actions o2er time. In the *6?7 edition of his !ook The &oncept of &orporate Strategy Andrews presents this lengthy definition of strategy, D&orporate strategy is the pattern Gitalics addedH of decisions in a company that determines and re2eals its o!Iecti2es purposes or goals produces the principal policies and plans for achie2ing those goals and defines the range of !usiness the company is to pursue the kind of economic and human organiFation it is or intends to !e and the nature of the economic and non>economic contri!ution it intends to make to its shareholders employees customers and communities. %&ndre's( )*+( p! *, )-D and !y *6?3 goes on to argue that strategy is a.. Lpattern of decisions in a company that determines and re2eals its o!Iecti2es purposes or goals produces the principal policies and plans for achie2ing those goals and defines the range of !usiness the company is to pursue the kind of economic and human organisation it is or intends to !e and the nature of the
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economic and non>economic contri!ution it intends to make to its shareholders employees customers and communities.M%&ndre's( )*.( p!*/Andrew5s definition o!2iously anticipates "intF!erg5s attention to pattern plan and perspecti2e. Andrews also draws a distinction !etween Dcorporate strategy D which determines the !usinesses in which a company will compete and D!usiness strategy D which defines the !asis of competition for a gi2en !usiness. Thus he also anticipated DpositionD as a form of strategy. Strategy as the !asis for competition !rings us to another Har2ard =usiness School professor "ichael 'orter the undisputed guru of competiti2e strategy. Strategy According to "ichael 'orter In a *66< Har2ard =usiness 0e2iew article and in his *6?< !ook &ompetiti2e Strategy 'orter argues that competiti2e strategy is Da#out #eing different.D He adds DIt means deli#erately choosing a different set of activities to deliver a uni(ue mi) of value.D In short 'orter argues that strategy is a!out competiti2e position a!out differentiating yourself in the eyes of the customer a!out adding 2alue through a mi: of acti2ities different from those used !y competitors. In his earlier !ook 'orter defines competiti2e strategy as Da com!ination of the ends @goalsA for which the firm is stri2ing and the means @policiesA !y which it is seeking to get there.D @Porter( ))/A Thus 'orter seems to em!race strategy as !oth plan and position. @It should !e noted that 'orter writes a!out competiti2e strategy not a!out strategy in general.A In Top "anagement Strategy G3H =enIamin Tregoe and Nohn Oimmerman of ;epner>Tregoe Inc. define strategy as Dthe framework which guides those choices that determine the nature and direction of an organiFation.D @;epner>Tregoe Pltimately this !oils down to selecting products *or services+ to offer and the markets in hich to offer them . Tregoe and Oimmerman urge e:ecuti2es to !ase these decisions on a single Ddri2ing forceD of the !usiness. Although there are nine possi!le dri2ing forces only one can ser2e as the !asis for strategy for a gi2en !usiness. The nine possi!ilities are listed !elow, 'roducts offered 'roduction capa!ility Natural resources "arket needs "ethod of sale SiFeQgrowth Technology
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"ethod of distri!ution 0eturnQprofit
It seems Tregoe and Oimmerman take the position that strategy is essentially a matter of perspecti2e. "ichel 0o!ert takes a similar 2iew of strategy in Strategy 'ure ( Simple where he argues that the real issues are Dstrategic managementD and Dthinking strategically.D .or 0o!ert this !oils down to decisions pertaining to four factors, ! 'roducts and ser2ices "! "arket segments #! &ustomers 4! Ceographic areas Like Tregoe and Oimmerman 0o!ert claims that decisions a!out which products and ser2ices to offer the customers to !e ser2ed the market segments in which to operate and the geographic areas of operations should !e made on the !asis of a single Ddri2ing force.D Again like Tregoe and Oimmerman 0o!ert claims that se2eral possi!le dri2ing forces e:ist !ut only one can !e the !asis for strategy. The *7 dri2ing forces cited !y 0o!ert are, ! 'roduct>ser2ice "! Sales>marketing method #! Pser>customer 4! $istri!ution method $! "arket type /! Natural resources .! 'roduction capacity>capa!ility *! SiFeQgrowth )! Technology +! 0eturnQprofit The notion of restricting the !asis on which strategy might !e formulated has !een carried one step farther !y "ichael Treacy and .red Wiersema authors of The $iscipline of "arket Leaders In the *66/ Har2ard =usiness 0e2iew article that presaged their *66# !ook Treacy and Wiersema assert that companies achie2e leadership positions !y narrowing not !roadening their !usiness focus. Treacy and Wiersema identify three D2alue>disciplinesD that can ser2e as the !asis for strategy, ! 8perational e:cellence "! &ustomer intimacy #! and 'roductQSer2ice leadership. As with dri2ing forces only one of these 2alue disciplines can ser2e as the !asis for strategy. Treacy and Wiersema5s three 2alue disciplines are !riefly defined !elow, ,perational -)cellence. Strategy is predicated on the production and deli2ery of products and ser2ices. The o!Iecti2e is to lead the industry in terms of price and con2enience.
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Customer Intimacy, Strategy is predicated on tailoring and shaping products and ser2ices to fit an increasingly fine definition of the customer. The o!Iecti2e is long>term customer loyalty and long>term customer profita!ility. &roduct/Service 0eadership, Strategy is predicated on producing a continuous stream of state>of>the>art products and ser2ices. The o!Iecti2e is the Buick commercialiFation of new ideas.
Each of the three 2alue disciplines suggests different reBuirements. 8perational E:cellence implies world>class marketing manufacturing and distri!ution processes. &ustomer Intimacy suggests staying close to the customer and entails long>term relationships. 'roduct Leadership clearly hinges on market>focused 0($ as well as organiFational nim!leness and agility. Ha0 % ))+- whilst not differentiating !etween corporate and !usiness strategy argues that 4strategy5 is the fundamental frameworks through which an organisation is a!le to, LAssert its 2ital continuity while at the same time purposefully managing its adaptation to the changing en2ironment to gain competiti2e ad2antageM %Ha0( ))+( p!#"A. Ha0 % ))+- goes on to argue that strategy can !e 2iewed in terms of the following si: critical dimensions which underpin the a!o2e definition. ! Strategy as a coherent, unifying and integrative pattern of decisions. "! Strategy as a means of establishing an organisations purpose in terms of its long>term o!Iecti2es !y defining the maIor programs the actions needed to achie2e such o!Iecti2es and pro2iding a framework for deploying the necessary resources. #! Strategy as a definition of an organisations competitive domain % strategy formation reBuires strategists to take decisions in relation to areas of growth new productQser2ice de2elopment di2ersification and in2estment thus defining the core nature of the !usiness acti2ities and the organisation5s position in the market place. 4! Strategy as a response to external opportunities and threats, and to internal strengths and weakness as a means of achieving competitive advantage % thus the outcome of strategic planning is a rational approach to maintaining and de2eloping the organisation5s competiti2e ad2antage within clearly defined market segment@sA. The underlying philosophy recognises thatE the ultimate o!Iecti2e is for the organisation to achie2e a long>term competiti2e ad2antage o2er its key competitors that such a competiti2e ad2antage will result from a rational analysis of internal and e:ternal forces for change and that a 2ia!le match !etween an organisation5s internal resources and the e:ternal en2ironment can !e achie2ed. $! Strategy as a logical system for differentiating managerial tasks at corporate, business and functional levels. This dimension is a recognition that the managerial responsi!ilities at corporate !usiness and functional le2els are different and the potential e:ists for them to !ecome internally inconsistent and strategically dysfunctional. 8rganisational strategy needs to address the needs5 of the organisation as a whole @corporate strategyA the !usiness le2el needs integral to enhancing the competiti2e position of each indi2idual !usiness unit and the
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need to de2elop the specialist organisational functions eg finance human resources in order to support the achie2ement of strategy at other le2els. The key issue here is that regardless of organisational structure a key dimension of strategy is the integration of these needs into a unified framework. /! Strategy as a definition of the economic and non-economic contribution the firm intends to make to its stakeholders. In this sense the term stakeholder can !e applied to anyone who directly or indirectly recei2es the !enefits or sustains the costs that result from an organisations5 actions. Strategy needs to take into account the short term and long term needs of its stakeholders which may sometimes appear ill>conditioned or e2en ideologically in opposition eg the need for short term profits 2erses a desire to pursue en2ironmentally friendly manufacturing processes. 1iewed in this way Strategy Formulation is essentially an e:tension of rational approaches to pro!lem sol2ing and decision making including the acti2ities of, identification of opportunity and risk determining the current state of the organisation5s material technical financial and managerial resources and the e:tent to which these will constrain or facilitate the achie2ement of competiti2e ad2antage @en2ironmental sur2i2alA and consideration of what alternati2es are preferred !y senior managers ie what are their preferred ideologies and what 2alues and !eliefs are these predicated on) In this sense these acti2ities assume that strategists @and hence strategic leadersA are analytically o!Iecti2e in estimating the a!ility of their organisation to o!tain and sustain competiti2e ad2antage. Howe2er it is important to recognise that the range of options considered will !e framed and constrained !y the 2alues !eliefs and indi2idual needs and preferences of the strategists themsel2es. %Ha1bric2 3 Mason( )*4According to &ndre's % )*.- Strategy Implementation in2ol2es a series of acti2ities which are essentially administrati2e in nature namelyE determining and de2eloping suita!le organisational structures and accounta!ility relationships esta!lishing measures of organisational control and pro2iding the strategic leadership necessary to con2ert strategy into reality. The su!>acti2ities of strategy formulation and implementation are represented in the form of diagram at the top of page 4 8nce de2eloped the key role of senior managers is to 4manage the strategy process5 5ha2ra6arthy 3 7orange % )) - to reduce goal incongruence and informational asymmetry. This is 2iewed as consisting of four distinct dimensions which help shed light on the role of senior managers and the functional outcomes of the strategic leadership process. 8i1ension , Strategic Planning Syste1: Here the role of the senior manager is concerned with communicating corporate 2ision setting o!Iecti2es @delineating strategic intentA which ensure that the 2ision is attaina!le in reality and percei2ed !y su!ordinates to !e so and to ensure the in2ol2ement of functional managers in the further de2elopment and implementation of strategy. The latter may in2ol2e a degree of negotiation and rational persuasion in order to transform su!ordinate compliance into commitment to new roles and new ways of working. 8i1ension " 9 Monitoring 5ontrol and 7earning: The key roles here in2ol2e de2eloping performance measures the monitoring and controlling of output and ensuring that feed!ack from Buality control systems engenders learning at all le2els in the organisation. Ensuring that the
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efforts of the workforce are co>ordinated and focused on the strategic o!Iecti2es de2eloping an organisational culture which supports the strategy !y ensuring that changes in the underlying assumptions of the workforce %Schein E( ))"- are in line with set o!Iecti2es and facilitate organisational learning. 8i1ension # , Incenti6es Syste1s: ;ey roles of senior managers need to include ensuring that strategically and culturally orientated !eha2iour and performance are adeBuately rewarded de2eloping congruence !etween organisational su!>units and encouraging the e:change of full and 2alid !usiness information. @According to Pedler et al % ))/- the latter !eing one prereBuisite of a learning companyA. 8i1ension 4 9 Staffing Syste1s: ;ey roles in2ol2e the matching of managerial e:perience 2alues !eliefs and personality with strategic and cultural imperati2es through the de2elopment recruitment and socialisation of key employees whilst redesigning work and !usiness processes to ensure that the achie2ement of strategic o!Iecti2es is intellectually and 2ocationally challenging and thus contri!utes to employee satisfaction. Strategy :or1ulation and I1ple1entation .80"PLATI8N I"'LE"ENTATI8N @$eciding what to doA @Achie2ing 0esultsA *. Identification of opportunity and risk *. 8rganisation structure and relationships, $i2ision of la!our &o>ordination of di2ided responsi!ility information systems -. 8rganisation processes and !eha2iour Standards and measurement "oti2ation and incenti2e systems control systems recruitment and de2elopment of managers 3. Top leadership Strategic, Organisational, Personal GSource, &ndre's( )*.( p!) H
-. $etermine the company5s material technical financial and managerial resources
&80'80ATE ST0ATECK
/. 'ersonal 2alues and aspirations of senior management #. Acknowledgement of non economic responsi!ility to society
'atterns of purposes and policies defining the company an its !usiness
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&utting it all together $ 1hat then is Strategy2

What then is strategy) Is it a plan) $oes it refer to how we will o!tain the ends we seek) Is it a position taken) Nust as military forces might take the high ground prior to engaging the enemy might a !usiness take the position of low>cost pro2ider) 8r does strategy refer to perspecti2e to the 2iew one takes of matters and to the purposes directions decisions and actions stemming from this 2iew) Lastly does strategy refer to a pattern in our decisions and actions) .or e:ample does repeatedly copying a competitor5s new product offerings signal a Dme tooD strategy) Nust what is strategy) Strategy is all theseRit is perspecti2e position plan and pattern. Strategy is the !ridge !etween policy or high>order goals on the one hand and tactics or concrete actions on the other. Strategy and tactics together straddle the gap !etween ends and means. In short strategy is a term that refers to a comple: we! of thoughts ideas insights e:periences goals e:pertise memories perceptions and e:pectations that pro2ides general guidance for specific actions in pursuit of particular ends. Strategy is at once the course we chart the Iourney we imagine and at the same time it is the course we steer the trip we actually make. E2en when we are em!arking on a 2oyage of disco2ery with no particular destination in mind the 2oyage has a purpose an outcome and an end to !e kept in 2iew. Strategy then has no e:istence apart from the ends sought. It is a general framework that pro2ides guidance for actions to !e taken and at the same time is shaped !y the actions taken. This means that the necessary precondition for formulating strategy is a clear understanding of the ends to !e o!tained. Without these ends in 2iew action is purely tactical and can Buickly degenerate into nothing more than a flailing a!out. When there are no Dends in 2iewD for the organiFation writ large strategies still e:ist and they are still operational e2en highly effecti2e !ut for an indi2idual or unit not for the organiFation as a whole. The risks of not ha2ing a set of company>wide ends clearly in 2iew include missed opportunities fragmented and wasted effort working at cross purposes and endless internecine warfare. A comment from Lionel PrwickJs classic *69< Har2ard =usiness 0e2iew article regarding the span of control is applica!le here, DThere is nothing which rots morale more Buickly and more completely than . . . the feeling that those in authority do not know their own minds.D .or the leadership of an organiFation to remain unclear or to 2acillate regarding ends strategy tactics and means is to not know their own minds. The accompanying loss of morale is enormous. 8ne possi!le outcome of such a state of affairs is the emergence of a new dominant coalition within the e:isting authority structure of the enterprise one that will augment esta!lished authority in articulating the ends toward which the company will stri2e. Also possi!le is the weakening of authority and the e2entual collapse of the formal organiFation. No amount of strategiFing or strategic planning will compensate for the a!sence of a clear and widespread understanding of the ends sought.
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"he &ractical 3uestion. Ho 2

How does one determine articulate and communicate company>wide ends) How does one ensure understanding and o!tain commitment to these ends) Some Buick answers are as follows, The ends to !e o!tained are determined through discussions and de!ates regarding the companyJs future in light of its current situation. E2en a future>oriented SW8T analysis @an assessment of Strengths Weaknesses 8pportunities and ThreatsA is !ased on current perceptions. The ends settled on are articulated in plain language free from flowery words and political Dspin.D The risk of misdirection is too great to tolerate unfettered wordsmithing. "oreo2er the ends are communicated regularly repeatedly through a 2ariety of channels and a2enues. There is no end to their communication. Pnderstanding is ensured 2ia discussion dialog and e2en de!ateE in a word through con2ersations. These con2ersations are li!erally sprinkled with e:amples for instances and what ifs. Initially the &E8 !ears the !urden of these con2ersations with staff. As more people come to understand and commit to the ends !eing sought this communications !urden can !e shared with others. Howe2er the &E8 can ne2er completely relinBuish it. The &E8 is the keeper of the 2ision and periodically must !e seen reaffirming it. Pltimately the ends sought can !e e:pressed 2ia a scorecard or some other de2ice for measuring and pu!licly reporting on company performance. Indi2idual effort can then !e assessed in light of these same ends. Suppose for instance that a company has these ends in mind, impro2ed customer ser2ice and satisfaction reduced costs increased producti2ity and increased re2enues from new products and ser2ices. It is a simple and undenia!ly rele2ant matter for managers to periodically ask the following Buestions of the employees reporting to them, What ha2e you done to impro2e customer ser2ice) What ha2e you done to impro2e customer satisfaction) What ha2e you done to reduce costs) What ha2e you done to increase producti2ity) What ha2e you done to increase re2enues from new products and ser2ices)
"he Decisions Are the Same

No matter which definition of strategy one uses the decisions called for are the same. These decisions pertain to choices !etween and among products and ser2ices customers and markets distri!ution channels technologies pricing and geographic operations to name a few. What is reBuired is a structured disciplined systematic way of making these decisions. Psing the Ddri2ing forcesD approach is one option. &hoosing on the !asis of D2alue disciplinesD is another. &ommitting on the !asis of D2alue>chain analysisD is yet a third. Psing all three as a system of cross>checks is also a possi!ility.
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Some 4undamental 3uestions 0egardless of the definition of strategy or the many factors affecting the choice of corporate or competiti2e strategy there are some fundamental Buestions to !e asked and answered. These include the following, Related to Mission ' 5ision Who are we) What do we do) Why are we here) What kind of company are we) What kind of company do we want to !ecome) What kind of company @organisationA must we !ecome)
Related to Corporate Strategy What is the current strategy implicit or e:plicit) What assumptions ha2e to hold for the current strategy What is happening in the larger social and educational What are our growth siFe and profita!ility goals) In which markets will we compete) In which !usinesses) In which geographic areas) Related to Competitive Strategy What is the current strategy implicit or e:plicit) What assumptions ha2e to hold for the current strategy to !e 2ia!le) What is happening in the industry with our competitors and in general) What are our growth siFe and profita!ility goals) What products and ser2ices will we offer) To what customers or users) How will the sellingQ!uying decisions !e made) How will we distri!ute our products and ser2ices) What technologies will we employ) What capa!ilities and capacities will we reBuire) Which ones are core) What will we make what will we !uy and what will we acBuire through alliance) What are our options) 8n what !asis will we compete)
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Strategic Management
So where does strategy fit in) Well strategy is, "he process #y hich individuals and organisations make choices a#out scarce resources so as to satisfy ants over time6 In making their choices individuals and organisations are constantly assessing market and non7market forces as vehicles to enhance economic elfare #ut they do so in an environment of comple)ity and uncertainty6 This is a glo!al definition !ut it is important !ecause it helps to put other definitions in perspecti2e. .or e:ample a definition of organisational strategy @I will now drop the reference to indi2iduals though it is not difficult to apply itA is as follows, 8A strategy is defined as a pattern% of purposes% policies% programmes% actions% decisions% or resource allocations that define hat an organisation is% hat it does% and hy it does it6 Strategies can vary #y level function% and #y time frame69 *:ryson% 1;;<% p63=+ =ryson is applying this definition to pu!lic and non>profit organisations !ut it is a definition also used !y those who ha2e analysed pri2ate sector firms @see for e:ample Andrews @*6?3A. 8>Strategy may #e thought of as? pattern of decisions in a company that determines and reveals its o#@ectives% purposes% or goals% produces the principal policies and plans for achieving those goals% and defines the range of #usiness the company is to pursue% the kind of economic and human organisation it is or intends to #e% and the nature of the economic and non7economic contri#ution it intends to make to its shareholders% employees% customers% and communities69*Andre s% 1;AB% p6AC+ It is a useful definition and is more practical !ut it can !e easily compared to our glo!al definition a!o2e. Thus decision makers in organisations recognise they ha2e scarce resources that must !e allocated efficiently and effecti2ely to produce core acti2ities and meet the changing demands of their customersQclients. In doing so they formulate short medium or long term strategies that underpin the rationale for the organisation5s continued e:istence. The phrase in 4an en2ironment of comple:ity and uncertainty5 is not present in this definition @nor indeed in those that followA. There is a hint that strategic managers ha2e at least some
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measure of control o2er the process of change and this is an issue e:amined in the final chapter of the !ooklet. The definition of strategy used !y =ryson pro2ides a general framework from which to analyse strategy. Howe2er it does not address the issue of competiti2e strategy at least directly. Crant @*666 p.*A states !oldly Lstrategy is a#out inningM !y which @I thinkA he means strategy is a!out !eing successful. &learly some are more successful than others are and success can !e short>li2ed. "anchester Pnited is the most successful English soccer team of the *667s !ut they were not always at the top of the league. Similarly "arks and Spencers were noted as the !est 4high Buality retailer5 in the P; for a num!er of years !ut in the late *667s they e:perienced a downward change in fortunes from which they are trying to emerge. There is competition in the pu!lic and non>profit sectors too. In some instances there is direct competition. "ost sections of central and local go2ernment ha2e e:perienced pri2atisation in which pri2ate firms !id for ser2ices once solely supplied !y pu!lic sector organisations. There is also competition for funding. Non>profit organisations compete against each other for donations. 'u!lic sector organisations usually ha2e to meet detailed reBuirements in order to o!tain funding !ut in doing so they ha2e to compete against others. .or e:ample =est 1alue is the latest P; go2ernment initiati2e aimed at impro2ing pu!lic ser2ices and this in2ol2es !enchmarking performance indicators and league ta!les. In such an en2ironment strategy is concerned with competition and some authors ha2e readily acknowledged this in their definitions. .or e:ample Nohnson and Scholes @*666A note that LStrategy is the direction and scope of an organisation o2er the long term, which achie2es ad2antage for the organisation through its configuration of resources within a changing en2ironment to meet the needs of markets and to fulfil stakeholder e:pectationsM @p.*7A. The emphasis on direction is important for organisations. The need to know what the organisational o!Iecti2es are and how they are to achie2e them are fundamental to success. =ut success is !ased on some pre>determined measure in relation to others o2er time in a similar acti2ity. That is why the key word in the a!o2e statement !y Nohnson and Scholes is 4ad2antage5 which really implies 4competiti2e ad2antage5 @'orter *6?9A. The emphasis is on strategic positioning so that an organisation outperform others operating in the same acti2ity. This of course raises important Buestions as to the meaning of success. Are those who appear lower down any gi2en league ta!le not pro2iding 2alue to the customers or citiFens) .or e:ample the glo!al market leader for pro2iding a managed electronic learning en2ironment is =lack!oard. It has a!out -7 per cent market share @!ased on the num!er of usersA. Ne:t is We!&T another glo!al player and much lower down the market share league ta!le are other pri2ate companies such as Learning Space or the uni2ersity>funded proIect &entre of Student En2ironment. Ket many who use electronic platforms pro2ided !y these smaller organisations !elie2e them to ha2e strengths that the larger organisations do not possess > that is why they chose them. The situation is somewhat different with pu!lic sector monopolies such as local authorities !ut the same point can !e made. &itiFens do not ha2e the choice of authority from which they get their ser2ice in the main !ut similarly local authorities cannot choose their location or their citiFens. .or e:ample the cost of refuse collection is higher in rural areas than in towns and
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cities. It would !e a!surd to de2elop a league ta!le showing the collection costs per capita for all locations. To get a more accurate comparison we can compare towns of similar population densities. Howe2er it is not that straightforward. What if town A has winding hilly roads and town = has flat straight roads with populations clustered differently to that of A) &an we put them in a league ta!le !ased on refuse collection cost per capita for towns of similar population densities and say that one is !etter than the other) Well we can !ut we need to !e aware in assessing them of the pro2iso a!out the uniBue geography of each town. They may !oth !e pro2iding an effecti2e ser2ice for their citiFens !ut town A is more e:pensi2e !ecause of its geographical disad2antage. @We could make similar argument a!out differences in demography !etween authoritiesA. The point that needs to !e made is that competiti2e ad2antage is important !ut we need to keep it in perspecti2e, Strategy is not Iust a!out winning it is a!out the effecti2e pro2ision of products or ser2ices that customers or citiFens with their 2arying tastes and wants truly desire. Henry "intF!erg @*66?A suggests that authors on strategy characterise its meaning in one or more of the following 9 ways A 'loy A 'osition A 'erspecti2e A 'lan A 'attern The first two are concerned Buite openly with the issue of competiti2e strategy. 'loy refers to outwitting a ri2al. 'osition is a!out how an organisation places itself in the market. =oth are concerned with o!taining a competiti2e ad2antage through the e:istence of core competence. The 2iew that strategy is a perspecti2e identifies with those organisations where there is a powerful group of strategy makers. It is their whims predilections and personality that influence organisational direction. This of course raises an issue a!out whether such 2iews reflect an organisational consensus. "ost organisations ha2e a strategic plan > a consciously intended course of action general or specific. Howe2er "intF!erg @*667A as you will note later is 2ery critical of what he calls the $esign School of strategic management. He implies that this approach relies hea2ily on a group of decision>makers @strategy as a perspecti2eA and that the formulation of strategy is detached from its implementation. He asks how such organisations can 2enture into new markets. What is reBuired is 4crafting5 which is in marked contrast to planning. L&raft in2okes traditional skill dedication perfection mastery through detail. What springs to mind is not so much thinking and reason as in2ol2ement a feeling of intimacy and harmony with the materials at hand de2eloped through long e:perience and commitment. .ormulation and implementation merge into a fluid process of learning through which creati2e strategies emerge.M %Mint;berg( )*. p!//A.
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Interestingly "intF!erg identifies strategy as a pattern !ecause planners may Iustify what they ha2e done e2en though it did not follow from the original plan. After ha2ing taken action we reflect on what we ha2e done and define it as a consistent pattern > whether or not it was intended. =ecause we DseeD a pattern what we do is ascri!e it as !eing intentional strategy > Dthe pattern stems from our planSD Howe2er there has !een no o2erseeing intention. Some plans may ne2er !e implemented or see the light of day. In the same way a pattern of actions may arise without preconcei2ed integrati2e planning. Indeed they can arise through the political cultural and social forces that operate within and upon the organisation. "intF!erg identifies with two sorts of strategy % deli!erate and emergent. ! A Deli#erate Strategy is an intended plan that is then realised @or otherwiseA. "! An -mergent Strategy arises from other sources usually political and cultural or through imposition @possi!ly !y an e2ent o2er which the organisation has no controlA.
A Summary of the language of Strategic Management

Mission: Vision Goals Values What the organisation or organisational sub-unit eg ward, dept, is for; its reason for being; its social purpose eg to improve the health of the population The successful future the organisation or organisational sub-unit eg ward, dept, sees for itself; the aspirations it has of fulfilling its purpose The overall ends or social results that the organisation wants to achieve or produce. How the organisation wishes to behave; a guide to behavioural norms, both internal and external eg respecting individual rights/differences, e uit!, honest! etc. How the organisation actuall! behaves and what it believes in. "pecific, measurable milestones that prescribe what different groups and individuals within the organisation need to do in order to achieve the above. What needs to be done each da!/wee#/month in order to achieve #e! ob$ectives.
Culture Objectives Tasks
Ho
&u#lic Sector Management Differs
<ohnston 3 Scholes %"++ - g argue that whilst the pu!lic sector managers are also engaged in con2erting resources into tangi!le and intangi!le things of 2alue eg ser2ices !ut this in2ol2es a more di2erse management process as it em!races a wider possi!le array of elements than in the pri2ate sectorE in the range of 2alues produces the producti2e capa!ilities deployed the resources called upon the composition of the en2ironment in which they occur and the nature of their interactions with that en2ironment. Some key differences are,
Introduction to Strategy Page .
&u#lic sector management is concerned
ith not only the production of private *individual+ value #ut also pu#lic value % that is 2alue that is consumed !y the pu!lic collecti2ely. L'u!lic 2alue often tends to !e percei2ed differently to pri2ate 2alue. LThe latter usually takes the form of outputs that is of products and ser2ices whereas the former usually registers in the pu!lic mind in the form of outcomes that is in terms of impacts on social groups and conditions.M @<ohnston 3 Scholes( "++ ( p!/A .or e:ample the pu!lic is more likely to !e concerned a!out reduction in disease occurrence @an outcomeA than a!out the num!er of clinic days @an outputA.
&u#lic mangers produce value for a more comple) cast of actors in their
environments % pu!lic 2alue is consumed !y the citi;enry rather than !y paying customers who consume pri2ate 2alue. Which leads to a recognition thatE
"he pu#lic sector manager
orks ithin an authorising environment rather than a market environment > which is often short>term in nature due to the electoral cycle. L8f course the pu!lic manager has an o2erriding responsi!ility to the citiFenry. =ut in the pro2ision of 2alue to the pu!lic as a whole other people are somehow effected or in2ol2ed as customers !eneficiaries or o!ligatees. E2ery alternati2e deployment of producti2e capa!ilities means a different distri!ution of 2alues amongst the pu!lic and other consumers with differing impacts on their often competing interests.M @<ohnston 3 Scholes( "++ ( p!/A
&u#lic Sector Managers use more diverse resources . In the purely pri2ate model
resources related unam!iguously to money this pro2ides the means of acBuiring or renewing la!our eBuipment and raw materials. Howe2er in the pu!lic sector not only is pu!lic money a resource !ut so too is Public Po'er. 'u!lic sector managers use the legitimate authority of the state and regulatory agencies as well as pu!lic money to deli2ery ser2ice.
&u#lic Sector Managers typically utilise a more diverse range of productive
capa#ilities. 'ri2ate sector managers tend to utilise organisational capa!ilities such as la!our eBuipment !uildings raw materials etc. these are controlled !y the owners or managers or can !e purchased !y them with money. They are at the manager5s disposal to !e deployed in a 2ariety of ways to optimise production. 'u!lic sector management often entails tapping a wider range of producti2e capa!ilities % not only the capa!ilities a2aila!le within the organisation !ut also those a2aila!le from outside it % user groups localQnational politicians 2oluntary groups LH=s organisations from the pri2ate sector etc. These differences ha2e important impact on !oth the &ontent and 'rocess of Strategic "anagement in the 'u!lic Sector.
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Implications Management
for
the
DContentE
of
&u#lic
Sector
Strategic
GAdapted from Nohnston ( Scholes -77* p.6>*7A Strategy as setting long7term direction. The more the organisation is su!Iect to the 2agaries of the authorising en2ironment the more pro!lematic it is to esta!lish and hold to a long term>direction especially in the contest of the electoral cycle. Strategy as positioning or scope. The more purely pu!lic the organisation the less it is positioned in terms of the outputs @productsA it produces and the markets it ser2es. 0ather the 2alue it produces will !e concei2ed in terms of outcomes defined !y contrast with alternati2e outcomes it could ha2e pursed and its 4market5 will !e defined !y the authorising en2ironment in which it operates. 'u!lic sector organisations are more likely to look to the political en2ironment to signal the appropriate positioning. Strategic 4it. Within the pu!lic sector strategic fit is concei2ed not as whether the product>market strategy fits the opportunities and threats of the market en2ironment and the strengths and weaknesses of the organisation !ut whether or not the organisation5s purposes attract permission and resources from the authorising en2ironment and can !e achie2ed !y the internal and e:ternal capa!ilities of the organisation. LAt the strategic le2el the pu!lic sector manager seeks to define the organisation5s mission in terms that ma:imise 2alue to the citiFens and stakeholders while still attracting sufficient consent to pro2ide !oth permission and resources for that missionM @<ohnson 3 Scholes( "++ ( p! +A Strategy as stretching distinctive competencies. To the e:tent that an organisation relies on either the commitment of its employees or the 4co>producti2e5 contri!ution of clients 2olunteers or other organisations stretching distincti2e competences entails tapping their consent and the application of indirect influence rather than simply the purchasing and commanding of producti2e capa!ilities. L'ut another way pu!lic managers may need to enhance the contri!ution of not only internal producers !ut also e:ternal co>producers in order to 4stretch5 operational capa!ilities this will entail attracting support from them which in turn will mean that the purposes pursued !y the organisation must !e attracti2e to those e:ternal contri!utors Gand other stakeholdersH. @<ohston 3 Scholes( "++ ( p! +A
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Implications for Management
the
D&rocessesE
of
&u#lic
Sector
Strategic
GAdapted from Nohnston ( Scholes -77* p.*7 >*-A Relevance of the Rational &lanning Model . The model of rational planning and pro!lem sol2ing has tended to dominate strategic management in recent years % howe2er the more pu!ic the organisation then argua!ly the less rele2ance this approach has. A 4purely pu!lic5 organisation is less likely to ha2e a clearly defined unitary goal its political mandate is more likely to !e ill>defined contested and changea!le it is more likely to !e su!Iect to arguments a!out the use of resources @especially legal authorityA and it is less likely to ha2e direct control o2er the producti2e capa!ilities it needs to perform its work % all of which are at odds with the reBuisite conditions for employing the rational planning model. Thus the model may !e rele2ant for an autonomous agency deli2ering outputs within a settled mandate !ut less so for a core policy department responsi!le for outcomes. That of course is why reformers seek to shift more 4pu!lic5 acti2ities along the continuum towards the pri2ate end for e:ample !y creating separate ser2ice>deli2ery agencies. =ut it may !e that in some of these cases 4pu!licness5 is inherent in the organisations acti2ities and cannot !e reorganised out of e:istence. @<ohnston 3 Scholes( "++ ( p! A "ur#ulent% Chaotic -nvironments. The comple:ity and tur!ulence facing more and more pu!lic sector organisations tends to dilute the rele2ance of rational planning. Instead strategy tends to !e open ended and less su!Iect to direct managerial control. LAs a result !eing strategic means imagining alternati2e 2isions and attracting support for them internally and e:ternally or on occasion mo!ilising others to deli!erate a!out what these 2isions should !e.M @<ohnston 3 Scholes( "++ ( p! #A
Ho
Does Strategy Develop in ,rganisations2
Strategy then is concerned with how resources are !est allocated in order to achie2e organisational ends and satisfy wants. Strategists need to consider the comple:ity of the e:ternal en2ironment and prioritise resources in order to achie2e competiti2e ad2antage or more appropriately achie2e the effecti2e deli2ery of products for a di2ersified consumer !ase. There are a num!er of influences upon the formulation of strategy. In some organisations strategy de2elops largely from planners and the plan. Howe2er this is only one influence and in other organisations strategy may de2elop primarily as issues emerge or plans fail to !e realised in the way they were intended. Thus there are other influences on the formulation of strategy nota!ly from organisational culture organisational politics 2ery strong leaders and e:ternal forces @perhaps the Co2ernment or a 'arent company in another country or a stock market crashA. Nohnson and Scholes @*663A ha2e shown that some forces may dominate at one moment
Introduction to Strategy Page "+
in time. Si: forces or influences on the de2elopment of strategy are possi!le !ut the num!er and relati2e weights 2ary from conte:t to conte:t.
Six Dimensions (Influences) in Strateg Develo!ment %&ohnston ' "choles, ())*+ T"e #lanning Dimension "trategies are the outcome of rational, se uential, planned and methodical procedures ,efinite and precise strategic ob$ectives are set The organisation and environment are anal!sed -otential strategic options are generated and the optimum solution chosen ,efined procedures for implementation and the achievement of the strategic ob$ectives are developed The strateg! is made explicit in the form of detailed plans T"e Incremental Dimension .volutionar! but purposeful strateg! development "trateg! is developed as issues arise "trateg! is continuall! ad$usted to match changes in the operating environment .arl! commitment to a strateg! is tentative and sub$ect to review "trategic options are continuall! assessed for fit "uccessful options gain additional resources "trategic options are developed from existing strategies b! experimentation and through gradual implementation T"e Cultural Dimension / 0wa! of doing things1 in the organisation guides strategic direction "trategies evolve in terms of a core set of shared assumptions based on past experience, values and beliefs held b! the organisation2s members The shared assumptions guide; the selection of goals and ob$ectives, the identification of strategic issues, the selection of information and the selection of strategies T"e #olitical Dimension "trategies are developed b! negotiation and bargaining between interest groups The interest groups see# to realise their own desired ob$ectives Their influence on strateg! development increases with power -ower comes from the abilit! to create or control the flow of scarce resources and the control and provision of information / strateg! acceptable to powerful interest groups is achieved b! a process of accommodation and mutual ad$ustment T"e Comman$ Dimension /n individual is the driving force behind the organisation2s strateg!. "trateg! is primaril! associated with the institutionalised power of an individual or small group. The strateg! represents the aspirations for the organisation2s future of this individual. The strategic direction ma! be related to a 0vision1 based on rational understanding and intuition, or experience and intuition. The individual becomes the representation of the strateg! for the organisation.. T"e %nforce$ C"oice Dimension "trategic choice is prescribed or limited b! external forces that the organisation is unable to control or influence. 3rganisations respond to environmental imperatives. "trategic change is instigated from outside the organisation.
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4arriers in the environment severel! restrict strategic mobilit!.
Influences on the &rocess of Strategy Development in the &u#lic Sector

In summary the conte:t and influences impinging on strategy in the pu!lic sector differ from those in the pri2ate sector. These include less e:posure to market pressures @at least historicallyA a greater need to conform to statutory and other formal regulations responsi!ility of managers to a 2ast array of different stakeholders greater emphasis on the net pu!lic welfare and in some cases differing core o!Iecti2es. The si: influences on the strategy de2elopment process outlined a!o2e are not mutually e:clusi2e since an organisation could ha2e 2arying degrees of each trait. Howe2er each of the si: dimensions can !e related to one of three o2erarching frameworks, ! strategy as managerial intentE "! strategy as the outcome of organisational processesE #! and strategy as imposed !y e)ternal forces.
Strategy as Managerial Intent

"anagerial intent regards the de2elopment of strategies as a deli!erate and planned managerial process. In the Buestionnaire it is represented !y two dimensions, "he &lanning Dimension This is approach traditionally associated with the de2elopment of strategy in the pri2ate sector. It is characterised as a seBuence of analytical and rational procedures followed precisely to formulate an intended strategy. Coals and strategic o!Iecti2es are set often !y specialised strategic planning departments after a details e:ploration of the opportunities and threats in the !usiness en2ironment which are matched to the strengths and weaknesses of organisation. After a systematic analysis and e2aluation of the potential options compared to the o!Iecti2es the chosen strategy is then detailed as a precise plan for implementation. "he Command Dimension The command dimension represents a situation in which an indi2idual has a high degree of control and direction o2er the strategy de2elopment process. The organisation5s strategy is associated with this indi2idual who may !e the chief e:ecuti2e owner or other powerful person in the organisation. This role may also !e performed !y a small group of top e:ecuti2es. The senior figure5s 2ision of the future can !ecome the strategy or determine the strategic direction of the organisation. The senior figure can !ecome so ine:trica!ly linked with the strategy that sQhe is often percei2ed as the em!odiment of the strategy. This can occur to such an e:tent that
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internal and e:ternal o!ser2ers attri!ute success or failure of that strategy to that one person and little consideration is gi2en to other internal or e:ternal input.
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Strategy as the outcome of ,rganisational &rocesses

Strategies can also de2elop as the outcomes of the organisation5s cultural and political processes. The culture and politics of an organisation may encourage emergent strategies or may stifle inno2ati2e strategy de2elopment. "he &olitical Dimension All organisations are political entities and suscepti!le to internal and e:ternal influences from 2arious groups of stakeholders which guide or constrain strategy de2elopment. Strategies are de2eloped as a process of !argaining and negotiation !etween the stakeholders in2ol2ed in the de2elopment of the strategy who often ha2e conflicting concerns and e:pectations. As the outcome of such !argaining strategies represent the wishes of the most powerful groups or compromises to accommodate conflicting interests rather than the fulfilment of pre>planned o!Iecti2es and careful analysis and e2aluation. "he Cultural Dimension This dimension represents the taken for granted assumptions and !eliefs @or paradigmA that are shared !y mem!ers of an organisation a!out that organisation its purpose and role. Strategy does not de2elop as the result of the use of analytical tools so much as drawing on e:perience and attitude 2alues and perceptions and taken>for>granted ways of doing things assumptions routines systems and sym!ols. Strategy de2elopment proceeds in accordance with and within the confines of this organisation5s culture and its dominant paradigm. Inno2ati2e and new strategies which lie outside the organisation5s cultural frame of reference are likely to meet 2ery stiff resistance. "he Incremental Dimension Studies in strategy de2elopment in organisation show that typically strategies change incrementally that is in relati2ely small steps o2er times. This can !e e:plained in two ways, 7ogical Incre1entalis1, this is an e:ample of deli!erate or planned strategy and a 2ariation on the general theme of rational planning in that managers may ha2e long term o!Iecti2e of where they want their organisation or department to !e and slowly o2er a period of time they mo2e towards this in a step>!y>step @incrementalistA manner. LStrategy formation is then purposeful and intentional. Howe2er !ecause of the comple:ity of the en2ironment the process of strategy de2elopment is adapti2eE managers attempt to !e sensiti2e to that en2ironment and gradually adapt to it as it changes. Strategic changes will !e relati2e small>scale and commitment to strategy tentati2e.M @<ohnston 3 Scholes( "++ ( p!" A 5ultural &daptation to the En6iron1ent , the argument here is that strategy is the outcome of the taken>fro>granted assumptions and ways of doing things in the organisation and of
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!argaining and negotiation !etween powerful groupings an will tend to take the form of adaptation to the en2ironment as culture ser2es to sol2e the dual pro!lems of e:ternal adaptation and internal integration. L'roponents of this 2iew argue that such incremental strategy de2elopment may !e post rationalised as a logical process !ut is in fact the outcome of the cultural and political process. There is of course an o2erlap !etween the two arguments. =oth suggest that strategy de2elopment is likely to !uild on the current strategy in an adapti2e way and in2ol2e people throughout the organisation in its refinement and de2elopment.M @<ohnston 3 Scholes( "++ ( p!" A
Imposed Strategy. the enforced choice dimension

The enforced choice dimension is characterised !y the e:ternal en2ironment operating to limit strategic direction. Strategies could !e instigated e:ternally the go2ernment may dictate a particular course of action to follow or insist on a certain type of regulatory control particularly so within the pu!lic sector. In the pri2ate sector market forces may e:ist where is choice is delimited in the pu!lic sector the authorising en2ironment may also ser2e to delineate strategy through the control of resources regulation imposition of working methods legislation imposition of outcome targets etc. 'owerful stakeholders such as customers suppliers or professional !odies may also impose strategies on the organisation there!y constraining managerial choice.
"he Strategy Development 3uestionnaire

The strategy de2elopment Buestionnaire was deri2ed after e:tensi2e research !y =ailey 3 &6ery % ))*- and has !een used with a total of < 6-7 managers * 7*3 of which classified their organisations as !eing in the 4pu!lic sector5. There are two parts to the self>report Buestionnaire. 'art A comprises #6 statements including a small num!er of dummy statements related to strategy de2elopment. .or each of these statements a manager is asked to indicate the degree to which the statements are characteristic of their organisation according to a se2en point Likert scale ranging from * T strongly disagree to 3 T strongly agree. 'art ! is designed to collect additional information a!out the manager5s organisation. Comparison of &u#lic Sector organisations 8i1ension Planning 5o11and Incre1ental Political 5ultural Enforced 5hoice Public Sector /.6/.63 #./# #.*# #.-< #.3< ith the rest of the sample Significant 8ifference 9U 7.*U Not Significant 7.*U Not Significant 7.*U
Other Organisations #.7* #.*6 #./? /.66 #.-7 /.?-
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-)planation of Fey Differences -nforced Choice dimension, The most outstanding difference was that related to enforced choice. 8n a2erage pu!lic sector managers ga2e this the highest score of all the dimensions. In contrast managers from other sectors ga2e this the lowest score. Incremental dimension, The second most important feature of strategy de2elopment process in the pu!lic sector is the incremental dimension which is also the single most important dimension in the rest of the sample. There is no significant difference reported !etween the pu!lic sector and rest of the sample in this respect. L"anagers in !oth sectors therefore stress the way in which their organisation is continually changing strategy in response to its changing en2ironment. If the one component statement referring e:plicitly to changes in the market place is omitted from the computation of the score on the incremental dimension the means for the pu!lic sector and rest of the sample !ecome eBual.M @=ailey 3 &6ery( ))*Command dimension, 'u!lic sector managers tended to accord less importance than those from other organisations to the command dimension statements although this difference from the rest of the sample is less pronounced than that o!ser2ed on the enforced choice dimension. LIn part these two differences are reciprocal. Where strategy is largely imposed or constrained !y e:ternal pressures managers see senior e:ecuti2es as less a!le to 4determine our strategic direction5 or to implement their 42ision of the future5 @!oth statements are components of the command dimensionA.M @ =ailey 3 &6ery( ))*&olitical dimension, The strategy de2elopment process in pu!lic sector organisations is also percei2ed to !e more political though this difference ranks only / rd in order of magnitude. It is pro!a!ly consistent with two other main differences. When strategy is largely dri2en !y e:ternal influences such as go2ernment which reduces scope for the direction of strategy internally !y a powerful figure then !argaining and negotiation are ine2ita!le. In pu!lic sector organisations this often takes the form of e:plicit !argaining !etween senior e:ecuti2es with e:ternal agencies for resources to influence the direction of the organisation. =ut it is also likely to consist of !argaining and negotiation !etween departments for scarce resources. The Lart of political negotiation within such conte:ts may not only !e essential to the de2elopment of strategies !ut a !asis on which e:ecuti2es de2elop their managerial careers.M @<ohnston 3 Scholes( p!"4A
8i1ension Planning 5o11and Incre1ental Political 5ultural Enforced 5hoice Public Sector /.6/.63 #./# #.*# #.-< #.3< Pri6ate Sector /.6# #.*3 #./6 /.?#.76 /.<# Significant 8ifference Not Significant 9U 7.*U Not Significant 7.*U 7.*U 7.*U
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Differences :et een su#7sectors and the pu#lic sector as a

Planning Mar2et NHS 7ocal ?o6@ Police Probation 5o11and Incre1ental Political
hole
Enforced 5hoice , , More >> , ,
5ultural
7ess >> More >> 7ess >> , 7ess >> 7ess > , , More >>> , , 7ess >> More >>> , More >> More >>> , , 7ess >> 7ess > , 7ess >> 7ess > 7ess >>> , V Significance at 9U VV Significance at *U Significance at 7.*U > Not Significant
The acti2ities defined as Mar2et are mainly those where customers !uy goods and ser2ices directly from organisations and these organisations are primarily concerned with pri2ate 2alue as opposed to pu!lic 2alue. In the NHS the most outstanding feature is the greater importance placed on the political dimension this may reflect the participation in the strategy formation in the NHS of a large number of stakeholders (manager, nurses, doctors, LHB, user groups, voluntary organisations, professional bodies, CHCs etc !. @=ailey 3 &6ery( ))*-
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Strategy Development 3uestionnaire

Strongly 8isagree ! We ha2e definite and precise strategic o!Iecti2es "! To keep in line with our !usiness en2ironment we make continual small> scale changes to strategy #! 8ur strategy is !ased on past e:perience 4! The influence a group or indi2idual can e:ert o2er the strategy we follow is enhanced !y their control of resource critical to the organisation5s acti2ities $! The strategy we follow is directed !y a 2ision of the future associated with the chief e:ecuti2e @or another senior figureA /! We ha2e strategy imposed on us !y those e:ternal to our organisation eg go2ernment .! We e2aluate potential strategic options against e:plicit strategic o!Iecti2es *! We keep early commitment to a strategy tentati2e )! 8ur organisation5s history directs our search for solutions to strategic issues +! The information on which our strategy is de2eloped often reflects the interests of certain groups ! 8ur strategy is closely associated with a particular indi2idual "! 8ur freedom of strategic choice is se2erely restricted !y our !usiness en2ironment #! We ha2e precise procedures for achie2ing strategic o!Iecti2es " # 4 $ Strongly &gree / .
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Strongly 8isagree 4! 8ur strategies emerge gradually as we respond to the need to change $! There are !eliefs and assumptions a!out the way to do things which are specific to this organisation /! 8ur strategy de2elops through a process of !argaining and negotiation !etween groups or indi2iduals .! The chief e:ecuti2e strategic direction determines our " # 4 $
Strongly &gree / .
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*! We are not a!le to influence our !usiness en2ironmentE we can only !uffer oursel2es from it )! We ha2e well>defined procedures to search for solutions to strategic pro!lems "+! We tend to de2elop strategy !y e:perimenting and trying new approaches in the marketplace " ! The strategy we follow is dictated !y our culture ""! 8ur strategy is a compromise which accommodates the conflicting interests of powerful groups and indi2iduals "#! 8ur strategic direction is determined !y powerful indi2iduals or groups "4! =arriers e:ist in our !usiness en2ironment which significantly restrict the strategies we can follow "$! 8ur strategy is made e:plicit in the form of precise plans
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Strongly 8isagree "/! 8ur strategy de2elops through a process of ongoing adIustment ".! The strategies we follow de2elop from 4the way we do things around here5 "*! The decision to adopt a strategy is influenced !y the power of the group sponsoring it ")! 8ur chief e:ecuti2e tends to impose strategic decisions @rather than consulting the top management teamA #+! "any of the strategic changes which ha2e taken place ha2e !een forced on us !y the those outside this organisation # ! We make strategic decisions !ased on systematic analysis of our !usiness en2ironment #"! 8ur strategy is continually adIusted as changes occur in the marketplace ##! There is resistance to any strategic change which does not sit well with our culture #4! 8ur strategies often ha2e to !e changed !ecause certain groups !lock their implementation #$! A senior figure5s 2ision is our strategy #/! .orces outside this organisation determine our strategic direction " " # # 4 4 $ $
Strongly &gree / / . .
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Scoring Fey 'lease transfer the num!er circled for each statement of the Strategy $e2elopment +uestionnaire to the corresponding !o: on the grid !elow. The num!er at the left of each !o: indicates the Buestionnaire statement to which it refers. Ha2ing transferred the num!er for all statement to the grid sum each column. Su!tract -# from each of the column totals to produce a score for each of the perspecti2es. Planning * 3 */ *6 -9 /* Tot ,"4 T T Incre1entalis 1 ? *# -7 -< /Tot ,"4 T 5ultural / 6 *9 -* -3 // Tot ,"4 T Political # *7 *< --? /# Tot ,"4 T 5o11and 9 ** *3 -/ -6 /9 Tot ,"4 T Enforced 5hoice < **? -# /7 /< Tot ,"4
Now transfer the scores onto the si: a:es within the concentric circles on the diagram on the ne:t page.
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Scoring Diagram Planning Tot ,"4 T T Incre1entalis 1 Tot ,"4 T 5ultural Tot ,"4 T Political Tot ,"4 T 5o11and Tot ,"4 T Enforced 5hoice Tot ,"4
Incremental #lanning
&'
Cultural
*( *&'
%nforce$ C"oice Comman$
#olitical
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Gsing &lanning to 4ormulate Strategy

A 1ord of e)planation
Whilst rational planning and pro!lem sol2ing tends within the pu!lic sector to !e utilised less as a means for de2eloping strategy than other mechanisms % it is howe2er a useful as means of analysing the processes in2ol2ed in managing the operational change reBuired to respond at department le2el to strategic o!Iecti2es which are set elsewhere within the organisation. 8ther sections of the course will look at managing change which is influenced !y other cultural dimensions eg culture politics etc. =ryson % ))$- articulates a ten step approach to planned strategy de2elopment !ased on his work pu!lic and non>profit sectors as his e:ample !ut it can !e readily adapted to a pri2ate sector conte:t. The ten steps are as follows, 16 Initiate and agree upon the strategic planning process6 =6 Identify ,rganisational Mandates 36 Clarify ,rganisational Mission and 5alues6 H6 Assess the e)ternal and internal environments to identify S1,"s *Strengths% 1eaknesses% ,pportunities and "hreats+ <6 Identify the strategic issues facing the organisation C6 4ormulate strategies to manage these issues B6 Revie and adopt the strategic plan or plans6 A6 -sta#lish an effective organisational vision6 ;6 Develop an effective implementation process6 1I6 Reassess strategies and the strategic planning process Note that these steps pro2ide structure !ut are not 4ta!lets of stone5> some organisations may feel that certain stages de2elop !efore others. These steps should lead to Laction results and e2aluationM. Howe2er this is not a linear process, formulation is interdependent with implementation and e2aluation.
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Stage 1. Initiate and agree upon the strategic planning process6

It is important that there is a dominant indi2idual or coalition of indi2iduals who sponsor @coerce)A the planning process. These are usually the key decision>makers. This may !e more difficult in cases where Ioint commissioning is present @Strategic AllianceA. Where there is no history of Ioint working mechanisms must !e put in place to facilitate de2elopments @e.g. find indi2iduals with common aims negotiate on funding start small scale....A Agreement must !e reached as to the purpose of the effort referred steps in the process. form and timing of reports @the planning cycleA role function and mem!ership of groups esta!lished to o2ersee the effort. role functions and mem!ership of any strategic planning committee. commitment of resources for the process.
Stage =. Identify ,rganisational Mandates

This is more prevalent in the pu#lic sector here statutory re(uirements can often hinder de2elopments. =ut it applies to nearly all multi>product or multi>ser2ice organisations. Thus there might !e geographical and product de2elopment !arriers imposed !y corporate headBuarters. The organisation or part thereof must understand the limits of its possi!ilities to de2elop products or ser2ices. Howe2er as S1ith % ))4- notes mandate analysis can clarify the !oundaries !etween what must !e done what could !e done and what must not !e done. .or e:ample the $ri2ing Standards Agency found that it could introduce tests on Saturdays and that the pu!lic would pay the e:tra for it. Thus whilst mandate analysis might seem a rather straightforward e:ercise it can aid the de2elopment of "ission for it informs indi2iduals a!out what the key responsi!ilities are or could !e. Stakeholders In considering mandates it is important to know who the stakeholders are. How important they are and how important they might !ecome) As =ryson % ))$- suggests identification of key stakeholders is the key means to success in pu!lic and non>profit organisations. =ut who are the stakeholders) The following list adapted from Smith @*66#A considers some of the stakeholders from pu#lic service organisations in the GF.
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Controllers of Resources Her "aIesties Treasury Supporting Co2ernment $epartment or Agency. Ser2ice recipients with an alternati2e source of supply Crant Awarding =odies Involvement in Service &roduction employees trade unions suppliers contractors partners Community &onsumersQcustomersQclientsQusers 0egulators Neigh!ours Local industry Education and training esta!lishments &olitical Influence 'arliament National Audit 8ffice @who scrutinise the acti2ities of pu!lic ser2ice organisationsA 'olitical parties Ta:payers 'ressure groups "edia @See &ppendi0,&ATechniBues of Strategic &nalysis( Section # , p!*A
Stage 3. Clarify ,rganisational *Departmental+ Mission and 5alues6

After deciding whom the strategy is for the o2erriding purpose or intent of the organisation must !e esta!lished. To gi2e you some idea of what a "ission Statement might entail the Pni2ersity of Northum!ria5s "ission is set out on the ne:t page.
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"he Gniversity of !orthum#riaEs Mission Statement "he #ission of the $niversity of Northumbria at Ne%castle is to be a leading, broad&based institution of higher education, serving national, regional and international needs and characterised by the outstanding 'uality of its teaching and research( by its concerns for the e)tension of access to fle)ible programmes %hich are responsive to the needs of students, employers and other clients( by its involvement %ith continuing education( by its dedication to the development of the full human potential of its students and to their better preparation for employment, through the development not only of their intellectual abilities but also enterprise, competencies and personal skills( by its determination to create e'ual opportunities and a harmonious and satisfactory learning and %orking environment for its students and staff( and by its cost&effective operation %ithin an optimised resource frame%ork Rational for developing a mission statement There ha2e !een a num!er of claims for mission. Pee2e % ))4- notes that a mission encourages the de2elopment of a clear sense of purpose. facilitates decision making in the organisation. facilitates organisation>wide communication. aids e2aluation acti2ity. clarifies marketing strategy. is useful in the management of contraction @at least if the mission has !een de2ised proacti2elyA. Watson and 5on'ay % ))$A suggest it could !e a way of esta!lishing !road policy goals from which key o!Iecti2es follow. ?oold and 5a1pbell % )*)- note Dthe popular demand for mission and policy statement does not pro2e their worthD. They can !e !land statements that are not e2idenced in the actions of management %Pee2e( ))4-! Howe2er whilst there may !e an element of truth in such o!ser2ations for many "ission esta!lishment is an important phase in the strategic management process. Indeed the process of drafting them may !e !eneficial, D...e2en if the mission statement ends up in e2eryoneJs waste!asket there will still !e !eneficial effects resulting from the thinking and analysis in2ol2ed in drafting it.D %=o'1an( ))+-
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-lements of a successful Mission Statement 8ruc2er % ).#- noted DThat !usiness purpose and !usiness mission are rarely gi2en adeBuate thought is perhaps the most single cause of !usiness frustration and failureD. Pee2e % ))4- summarises the work of / authors > one from the P; one from Australia and one from the PSA > and suggests that there are certain Core -lements of an effecti2e "ission Statement. It should specify clearly the nature of the enterprise in terms of its products or ser2ices. reflect the concerns of organisation mem!ers. specify the enterprisesJ markets and customers. specify the !eliefs and 2alues priFed !y organisation mem!ers that it wishes to communicate. specify the technology in use. specify the growth policy of the organisation. !e general enough to !e fle:i!le !ut specific enough to ena!le priorities to !e esta!lished. A study !y 8a6id % )*)- of 39 mission statements from the American .ortune 977 companies showed the most common components of Americas successful companies to !e, concern for customers definition of the firmJs maIor products or ser2ices concern for pu!lic image The Ashridge Management Centre which has many years e:perience in de2eloping "ission Statement for organisations throughout the world argues that there is a need to com!ine underlying !eliefs and assumptions within the organisation the purpose of the organisation and the actions it takes to achie2e it purpose. DAn organisation has a mission when its culture fits with its strategyD. %5a1pbell and Ceung( ))+!Purpose Strategy E1ployees Dalues
Standards 3 =eha6iours
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The research !y &amp!ell and associates at Ashridge led to the following guiding principles to implement mission It takes years not month. True consensus is necessary within the top team. Action is a !etter communicator than words. Top team 2isi!ility is essential. Top team continuity helps. Strategy and 1alues should !e formulated together. "anagement should focus on the link !etween !eha2iour and 2alues. "ake the mission inspirational !ut not unrealistic. &amp!ell et al warn that de2eloping a strong sense of mission in a period of change may !e disastrous. So !e warySS Pse the Ashridge "ission "odel !elow to score your own organisation5s "ission Statement. &ompare your "ission with a like organisation @you can easily find one on the internetA. Additionally you might like to score the Pni2ersity of Northum!ria5s "ission Statement set out a!o2e. 8o you ha6e a ?ood Mission State1entE &ns'er each Buestion: +FNo( F to so1e degree( " F Ces Score F +( or " Score The Purpose a. $oes the statement descri!e an inspiring purpose that a2oids playing to the selfish interests of the stakeholders % shareholders customers employees suppliers) !. $oes the statement descri!e the organisation5s responsi!ility to its stakeholders) Strategy a. $oes the statement define a !usiness domain e:plaining why it is attracti2e) !. $oes the statement descri!e the strategic positioning that the organisation prefers in a way that helps to identify the sort of competiti2e ad2antage it will look for) Dalues a. $oes the statement identify 2alues that link with the organisation5s purpose and act as !eliefs that employees can feel proud of) !. $o the 2alues 5resonate5 with and reinforce the organisation5s strategy) =eha6iour Standards a. $oes the statement descri!e important !eha2iour standards that ser2e as !eacons of the strategy and 2alues) !. Are the !eha2iour standards descri!ed in a way that ena!les indi2idual employees to Iudge whether they ha2e !eha2ed correctly or not) G5td
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8o you ha6e a ?ood Mission State1entE &ns'er each Buestion: +FNo( F to so1e degree( " F Ces Score F +( or " Score 5haracter a. $oes the statement gi2e a portrait of the company capturing the culture of the organisation) !. Is the statement easy to read) TOT&7 S5OHE Ma0i1u1 score "+( ?ood Score $( Poor Score less than +
Stage H. Assess the e)ternal and internal environments to identify S1,"s *Strengths% 1eaknesses% ,pportunities and "hreats+
It is important to understand !oth the dynamic of an uncertain e:ternal en2ironment and those internal structures and processes that make up an organisation5s core competences. To this end it is essential that organisations consider the short medium and possi!ly long term e:ternal e2ents and internal strengths and weaknesses. @See &ppendi0,&A TechniBues of Strategic &nalysis( Section # , p!
Stage <. Identify the strategic issues facing the organisation

At this stage specific strategic o!Iecti2es could !e considered although as the process is unra2elling these may ha2e already !ecome clearer. 8!Iecti2es according to Smith @*66#A should !e Achie2ement @not acti2ityA oriented @no am!iguous 2er!s such as maintain understand...A. Specific. ,#@ective. -nds not means. 4e in num!er @some would argue the need to identify &ritical Success .actorsA. Achieva#le. &rioritised. Here organisations might prioritise o!Iecti2es perhaps they ha2e a set of Core ,#@ectives which may o2erlap with others and these can !e gi2en greater emphasis !ecause they yield more 2alue from the resource outlay. =y understanding strategic o!Iecti2es organisations can !egin to assess their key strategic issues.
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LThese are fundamental policy Buestions or critical challenges that affect an organisation5s mandates mission and 2aluesE product or ser2ice le2el and mi:E clients users or payersE or cost financing organisation or managementL %=ryson( ))$(p!#+-.
Stage C. 4ormulate strategies to manage these issues

The preferred definition of organisational strategy used in the last chapter was that of =ryson % ))$-! LA strategy is defined as a pattern of purposes policies programmes actions decisions or resource allocations that define what an organisation is what it does and why it does it. Strategies can 2ary !y le2el function and !y time frame.M @=ryson( ))$( p!#"A This sits nicely with the more glo!al definition in the pre2ious chapter. 8rganisations are part of the process !y which scarce resources are allocated to satisfy wants. Not all wants can !e satisfied !ut if the organisation can appropriately identify its purpose and its intent then planning systems may !e useful 2ehicles for marrying resources and wants. &learly there will ne2er !e a perfect match. The en2ironment is a comple: and has large pockets of uncertainty. "oreo2er decision makers ha2e only !ounded rationality i.e. there are limits to their cogniti2e processing skills !ecause information is incomplete. It is often the case that decision makers will !elie2e they are in control of the en2ironmentE possi!ly !ut they ne2er ha2e total control. This of course implies that there is no such thing as a perfect strategy. Indeed if there were then strategy implementation and re2iew would !e largely wasteful processes. All organisations adopt and adapt their strategies and plans to meet the dynamic world.
Stage B. Revie ing and Adopting the Strategies and &lan

This is important where official appro2al to proceed is reBuired or where Ioint commissioning work is !eing undertaken. This stage represents the formal seal of appro2al for the strategies to !e adopted.
Stage A. -sta#lishing an -ffective ,rganisational 5ision

1ision Statements are seen as documents that set out the strategic intentions of the organisation @Hamel and 'rahalad *66#A. They are a!out 4animating the dream5. These statements offer aspirations a!out the future strategic direction of the organisation and are often incorporated in "ission Statements. In this stage the organisation is de2eloping a 2iew of what it should look like once its strategies are achie2ed and de2eloped to their full potential. It is the organisation5s 41ision of Success5. This 2ision may !egin at the 2ery earliest stage of the planning process > the initial agreement > !ut it can de2elop at this later stage. Indeed many organisations may not need a 2ision of success particularly if they only need to identify and resol2e a few strategic issues.
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According to Hunt % ))/- within the of 2isionary leadership framework strategic leaders !elie2e that they are a!le to influence organisational performance !y empowering followers to realise cultural determinants of their 2ision. LThe 2ision and culture>creating process is carried out !y means of fi2e leader !eha2iours or skills deri2ed from =ennis ( Nanus @*6?9A. Thus the approach emphasises leader personal characterises Ga central tenant of strategic leadership theory of @.inkelstein ( Ham!rick *66<AH organisational settings within which the 2isionary leader acts and specific actions that they take to !uild 2ision and culture. GW.H The 2isionary leadership !eha2iour consists of focussing the attention on the 2isionE communicating the 2ision personallyE demonstrating trustworthinessE displaying respectE and taking risk.M %Hunt <( ))/( p! )$( p! )/Cu2l % ))*- in attempting to define the Buality and characteristics of an effecti2e 2ision cites the work of @=ennis 3 Nanus( )*$A Iotter( ))/A Iou;es 3 Posner( ))$A Tichy 3 8e6anna( )*/A in arguing that a 2ision should !e a simple and idealistic picture of a desira!le future state and not a comple: proIect plan with detailed action steps and should appeal to the 2alues hopes and ideals of organisation mem!ers whose support is reBuired. Additionally the 2ision should !e challenging !ut achie2a!le. Cu2l % ))*- enunciates the following guidelines for leaders who need to de2elop a meaningful 2ision. ?uidelines for :or1ulating a 6ision In2ol2e key stakeholders Identify strategic o!Iecti2es with wide appeal Identify rele2ant elements in the old ideology Link the 2ision to the core competences of the organisation E2aluate the credi!ility of the 2ision &ontinually assess and refine the 2ision %Cu2l ?( ))*( p!44/-
Stage ;. Developing an -ffective Implementation &rocess

$e2eloping a document is not enough. .or Strategies to !e realised Indi2iduals teams etc. ha2e to know their roles and responsi!ilities Action plans ha2e to !e de2eloped Timescale has to !e considered @that is a 'lanning &ycle should de2elopA. 0esources ha2e to !e committed particularly to training &ommunication processes ha2e to !e de2eloped @and these ha2e to !e effecti2eA 0e2iew and monitoring procedures ha2e to !e considered @This may in2ol2e performance indicators !enchmarkingA
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Accounta!ility procedures must !e put in place
Stage 1I. Reassessing Strategies and the Strategic &lanning &rocess

The process is on going. =ut remem!er new strategies emerge and some old ones are discarded whilst others remain.
In Summary
In this section we ha2e presented 'lanning as a linear @4Ten>Step5A process though it clearly does not ha2e to !e. Kou might want to reflect upon the last chapter that considered emergent strategies and used "intF!erg5s phrase 4strategy as crafting5. The acti2ity set out !elow should let you think a!out these issues in more depth.
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References
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*ppendi) * + Strategic (,nvironmental *nalysis! "ools and "echni'ues
*ppendi) B ("he Balanced Scorecard!

Strategy Intoduction

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Strategy Intoduction

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Realising Service Developments in Health Care

An Introduction to Strategy Development and Strategic Analysis Module 1 of 3

Some Definitions $ Strategic Content% &rocess ' "hinking

"ethod of distri!ution 0eturnQprofit

-. $etermine the company5s material technical financial and managerial resources

'atterns of purposes and policies defining the company an its !usiness

&utting it all together $ 1hat then is Strategy2

"he &ractical 3uestion. Ho 2

"he Decisions Are the Same

A Summary of the language of Strategic Management

Culture Objectives Tasks

&u#lic Sector Management Differs

&u#lic sector management is concerned

"he pu#lic sector manager

&u#lic Sector Managers typically utilise a more diverse range of productive

Implications for Management

Does Strategy Develop in ,rganisations2

4arriers in the environment severel! restrict strategic mobilit!.

Influences on the &rocess of Strategy Development in the &u#lic Sector

Strategy as Managerial Intent

Strategy as the outcome of ,rganisational &rocesses

Imposed Strategy. the enforced choice dimension

"he Strategy Development 3uestionnaire

Other Organisations #.7* #.*6 #./? /.66 #.-7 /.?-

Differences :et een su#7sectors and the pu#lic sector as a

Strategy Development 3uestionnaire

" " " "

" " "

" " "

%nforce$ C"oice Comman$

Gsing &lanning to 4ormulate Strategy

Stage 1. Initiate and agree upon the strategic planning process6

Stage =. Identify ,rganisational Mandates

Stage 3. Clarify ,rganisational *Departmental+ Mission and 5alues6

Stage <. Identify the strategic issues facing the organisation

Stage C. 4ormulate strategies to manage these issues

Stage B. Revie ing and Adopting the Strategies and &lan

Stage A. -sta#lishing an -ffective ,rganisational 5ision

Stage ;. Developing an -ffective Implementation &rocess

Accounta!ility procedures must !e put in place

Stage 1I. Reassessing Strategies and the Strategic &lanning &rocess

*ppendi) * + Strategic (,nvironmental *nalysis! "ools and "echni'ues

*ppendi) B ("he Balanced Scorecard!

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ppendi) + Strategic (,nvironmental *nalysis! "ools and "echni'ues