Used in the Second World War widely
· 1950s- Private sector developed concept of earning more profit by using military strategy against their enemies in the market, called 'Business financial Budget'
· 1060s- long range planning, business is a continuous activity
o long
o based upon own resources (analysis of internal factors only)
· 1970s- Strategic planning
o analysis of external factors also
o analysis of internal factors
o Business strategy planning
o corporate strategy planning
· 1980s- Strategic Management
o Planning
o Implementation
o Monitoring and
o Evaluation
· Like war, businesses are also war of the product with w4eanpons of quality, price, competitiveness etc
· 1990s- Public sector
o Public sector considered uneducation, unemployment, poverty etc. as its enemies and to fight against these social enemies, public sector adopted strategic management like that of military who used strategy against their enemies.
· Thought of military generals came developing through private sector and finally in public sector
What is Strategic Management?
o SM is a set of decisions and actions to match between the organizational environment with the strategy, structure and process of organization that determines the long range performance of the organization.
o systematic analysis of future challenges of the organization
o Base of future is always present and past
o systematic analysis of pivotal issues and concerns
o the comprehensive analysis of the organization capacity to address
Features of SM
o Planned evolution (making balance between pure plan and gradualism pragmatically)
o Specific attitude-With optimism (Positive attitudes)
o Strategic thinking and actions to revel conscious efforts(knowing result in advance)
o Collective learning (among related/Stockholders)
o Creations and retention of factors that make success.
Strategic Management in Public Sector
o Felt after 1990s when private sector government success form using SM in the organization.
o Poverty, uneducation, terrorism etc are main thing to fight with
o Public sector was considered as "under Performed Sector" and to win public confidence, public sector adopted SM
Why SM in Public Sector
o Public Sector as Underperformed sector
o To become pro-active: Routine job, inertia, public sector was considered alwya reactive, to overcome this deficiency public sector adopted SM, also public sector is ruled based job, routine job
o To change the perspective: Shifty form short term perspective to long term perspective, nation is not only of one generation, for building basis for next generation, hence long term perspective is needed.
o To change approach: Incremental model or gradualism couldn't change the public sector; hence approach should be adoptive matching with change of society.
o Role of the public sector: Public sector is normally considered as 'followers of the order/directives' and it does not optimize the resources; to change this concept SM is adopted in Public sector.
Process of SM
1. Clarify on jurisdiction and Mandate
2. Develop the Vision
a. what to become
b. Desired/idealistic situation or destination
3. Develop the mission
a. why do we exist
b. activities / for whom / which values
4. Evaluate the external and internal situation ( Environmental scanning)
a.
SWOT Analysis
SWOT Analysis
i. Strength
ii. Weakness
iii. Opportunities
iv. Threats
b. PESTLE Analysis
i. Political
ii. Economical
iii. Social
iv. Technological
v. Legal
vi. Ecological
5. Develop strategies accordingly
6. Formulate the goals and objectives
7. Implementation
a. developing action plan ( activities, indicator, resources, responsible person)
b. Institution for implementation
c. Resources
d. Authority
e. Leadership
f. Management
8. Monitoring and Evaluation
a. Monitoring: regular/ continuous activity throughout the implementation
b. Evaluation:
i. Mid-term evaluation
ii. Interim evaluation
iii. Post evaluation
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