GMGA3037 3rd Handout

GMGA3073 STRATEGIC PUBLIC MANAGEMENT
SEMESTER JJ212
PJJ-UUM
MEETING - III
GMGA3073
STRATEGIC PUBLIC MANAGEMENT
SEMESTER JJ212 (2021/2022)
STRATEGY
IMPLEMENTATION
GMGA3073
SEMESTER JJ212 (2021/2022)
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SEMESTER JJ212
PJJ-UUM
Introduction
• Strategy formulation is primarily an intellectual process
• Strategy implementation is primarily an operational process
• Strategy formulation requires good intuitive and analytical skills
• Strategy implementation requires special motivation and leadership skills
• The sum total of all activities and choices required for the execution of a
strategic plan
• To materialise all strategies formulated during the strategy formulation stage
Questions on Strategy Implementation

• Who are the people to carry out the strategic plan?
• What must be done to align company operations in the new intended
direction?
• How is everyone going to work together to do what is needed?
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Components
• Programme
• a collection/set of activities by the organisation to accomplish a plan
• Budget
• Involves estimation of resources usage to accomplish a plan
• Means in allocating organisation’s resources
• Procedures
• detail the various activities that must be carried out to complete an organisation’s
programmes
• standard operating procedures
Structure Follows Strategy

• Structure Follows Strategy
• changes in strategy lead to changes in organisational structure
1. New strategy is created

2. New administrative problems emerge
3. Performance declines
4. New appropriate structure is created
5. Performance rises
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Basic Issues in Strategy Implementation

• Management
• Marketing
• Finance
• Human Resource Management
• Operations
• Information Communication and Technology (ICT)
General Public Management Issues in Strategy

Implementation
• Leadership
• Accountability
• Transparency
• Responsibility
• Efficiency
• Information Communication and Technology (ICT)
• Globalisation & Liberalisation
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Specific Public Management Issues in Strategy

Implementation
• Strengthening the country’s competitiveness
• Managing equity-based economic growth
• Generating human potential to strengthen public sector performance
• Leading public service transformation
• Professionalism in the public service
EVALUATION AND CONTROL

GMGA3073
SEMESTER JJ212 (2021/2022)
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PJJ-UUM
INTRODUCTION
• The final stage in strategic management process
• Success vs. Failure
• To determine the success of implemented strategies
• Involves:
• Reviewing the external and internal factors which formed the basis of the current
strategies
• Measuring the performance against objectives
• Taking corrective action (as needed)
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Key Questions to Address in Evaluating

Strategies
1. Are our internal strengths still 5. Are our external opportunities
strengths? still opportunities?
2. Have we added other internal 6. Are there now other external
strengths? If so, what are they? opportunities? If so, what are
3. Are our internal weaknesses still they?
weaknesses? 7. Are our external threats still
4. Do we now have other internal threats?
weaknesses? If so, what are 8. Are there now other external
they? threats? If so, what are they?
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Evaluation Framework
NO
Determine what Establish Measure Does performance Take corrective
to measure standards performance match standards? action
YES
Continue/
Proceed with
strategies
adapted from Wheelen et al. (2018)
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Measuring Performance
• Performance
• end result of an activity
• One of the obstacles to effective control is the difficulty in developing

appropriate measures of important activities and outputs
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Corrective Actions
Possible Corrective Actions
1 Alter the organisation’s structure
2 Replace one or more key individuals
3 Divest a division
4 Alter the organisation’s organisational direction (e.g. vision and mission)
5 Devise new policies
6 Install new performance incentives
7 Add or terminate employees or managers
8 Allocate resources differently
9 Outsource functions
from David & David (2017)
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Using Benchmarking To Evaluate Performance

• Benchmarking
• the continual process of measuring products, services and practices
against the toughest competitors or those companies recognised as
industry leaders
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Benchmarking: Procedures
1. Identify area or process to be examined
2. Find behavioural and output measures
3. Select accessible set of competitors of best practices
4. Calculate differences among organisation’s performance measurements
and competitors; determine why differences exist
5. Develop tactical programmes for closing performance gaps
6. Implement the programmes and compare the results
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Sources/References
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2017). Strategic Management: Competitiveness & Globalization:
Concepts and Cases (12th ed.). Singapore: Cengage Learning.
David, F. R. & David, F.R. (2017). Strategic Management: A Competitive Advantage Approach, Concepts and
Cases (16th ed.). New York: Pearson.
Dess, G.G., McNamara, G., Eisner, A.B. & Lee, Seung-Hyun (2019). Strategic Management: Text and Cases
(9th ed.). New York: McGraw-Hill.
Gamble, John, Thompson, Arthur A., & Peteraf, Margaret A. (2019). Essentials of Strategic Management: The
Quest for Competitive Advantage. (6th ed.). New York: McGraw-Hill.
Jones, Gareth R. & Hill, Charles W. L. (2010). Theory of Strategic Management (9th ed.). Singapore: Cengage
Learning.
Rothaermel, Frank T. (2013). Strategic Management: Concepts. New York: McGraw-Hill.
Wheelen, T., Hunger, J., Hoffman, A. & Bamford, C. (2018). Strategic Management and Business Policy:
Globalization, Innovation and Sustainability. (15th ed.). New York: Pearson.
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STRATEGIC MANAGEMENT
APPROACHES IN
THE PUBLIC SECTOR
GMGA3073
SEMESTER JJ212 (2021/2022)
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PUBLIC-PRIVATE PARTNERSHIP
• The private sector constructs and completes government projects with its own
financial resources.
• In return, the government will reimburse the company in the form of land swap
or instalment payments via lease
• Example:
• PLUS Expressway
• East Coast Railway Link (ECRL) project
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INCORPORATION
• Change the status of a government agency to a wholly-owned government
company under the Companies Act 1965
• Involves the transfer of functions or activities of the public sector to a company
fully owned by the government
• Example:
• MoF Inc
• Prasarana Malaysia Bhd
• Khazanah Malaysia Bhd
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PRIVATISATION
• Transfer of public sector activities or functions to the private sector.
• The government will provide funding for the private sector to implement and
complete the projects.
• Example:
• Lembaga Letrik Negara (LLN) (National Electricity Board) to Tenaga Nasional Berhad
(TNB)
• Jabatan Telekom (JT) to Telekom Malaysia Berhad (now as TM)
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INNOVATION
• Creation, development and implementation of a new product, process or
service, with the aim of improving efficiency, effectiveness or competitive
advantage
• A new method, idea, product, etc.
• Example:
• Road Transport Department (JPJ)- driving licence and road tax renewal
• National Registration Department (JPN)- myKad, myKid and myPR application, birth
registration
• Department of Immigration- passport ,border pass and work permit application
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STRATEGIES TO STRENGTHEN
PUBLIC SERVICE CAPABILITIES
GMGA3073
SEMESTER JJ212 (2020/2021)
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INTRODUCTION
• There are several issues discussed on the capabilities of public service in
Malaysia.
• Few strategies may be suggested in improving the Malaysian public service
capabilities
• All issues in the strategy implementation need to be look into further attention
to ensure the materialisation of the suggested strategies in improving the
public service capabilities
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STRATEGY
• Strategy 1: Determining Dynamic Direction
• Strategy 2: Developing a Solid Organisation
• Strategy 3: Managing the Best Human Resource
• Strategy 4: Developing Competitive Human Resource
• Strategy 5: Encouraging Excellent Performance
• Strategy 6: Appreciating Excellent Service
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Strategy 1: Determining Dynamic Direction

• Environmental changes will require a dynamic direction to fit with the context
and/or situation
• Dynamic direction relates to the organisational direction
• Vision
• Mission
• Objectives
• Goals
• Charters
• etc.
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Strategy 2: Developing a Solid Organisation

• A solid organisation should withstand any environmental factors, particularly
the external threats
• Based on the dynamic direction
• The importance of organisational culture
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Strategy 3: Managing the Best Human

Resource
• Focuses in retaining the best human capital in the organisation
• Several human resource aspects to be consider in retaining the best human
resource:
• Human Resource Planning
• Recruitment
• Training & Development
• Performance Appraisal/ Management
• Benefits, Rewards & Recognition
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Strategy 4: Developing Competitive Human

Resource
• Identifying/ Recognising strategic direction
• Ensuring organisation’s capacity
• Training and development
• Talent management
• Managing workforce with quality
• Developing workforce competencies
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Strategy 5: Encouraging Excellent

Performance
• Performance, and rewards management
• Formation of a high-performance work culture
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Strategy 6: Appreciating Excellent Service

• Recognition
• Awards, Promotion, Incentives, Benefits
• Acknowledgement
• In the organisation
• Among the peers
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HIGH PERFORMANCE
CULTURE LEADERSHIP
GMGA3073
SEMESTER JJ212 (2021/2022)
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INTRODUCTION
• The Public Service Department (Jabatan Perkhidmatan Awam/ JPA) is the
major source of skills and intellectual capital used by the Malaysian
Government to achieve its objectives and goals.
• Each agency is now responsible for managing its own development activities to ensure
that its staff have the necessary capabilities to achieve the government's goals
efficiently and effectively.
• This framework does not seek to cover every detail of the management of
development.
• Agencies will need to consider the best way to apply the principles outlined in the
framework to best match their particular context and environment.
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OVERVIEW OF MALAYSIAN PUBLIC SERVICE

• Public administration in the 21st century is undergoing dramatic
change, especially in advanced economies, but also in many parts of
the developing world.
• Globalisation and the pluralisation of service provision are the driving forces
behind these changes.
• Policy problems faced by the Government are increasingly complex,
wicked and global, rather than simple, linear, and national in focus.
• And yet, the prevailing paradigms through which public sector reform
were designed and implemented are relatively static and do not fully
encompass the significance or implications of these wider changes.
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MODELS OF PUBLIC SECTOR REFORM
How can we put the government on an orderly “Weberian” public administration and
1 Post-Independence
efficient footing? capacity-building
How can we get the government closer to the
2 Decentralisation 1970s to the present
grassroots?
How can we make the government more
3 Pay and employment reform 1980s to 1990s
affordable?
How can we make the government perform
4 New Public Management 1990s to the present
better and deliver on our key objectives?
How can we make the government more 1990s to the present
5 Integrity and anti-corruption reforms
honest?
How can we make the government more
6 Bottom-Top Reform Late 1990s to the present
responsive to the citizens?
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TRADITIONAL ROLES OF PUBLIC SERVICE

• A separation between politics and elected politicians on the one hand and
administration and appointed administrators on the other;
• Administration is continuous, predictable and rule-governed;
• Administrators are appointed based on qualifications, and are trained
professionals;
• There is a functional division of labour, and a hierarchy of tasks and people;
• Resources belong to the organisation, not to the individuals who work in it;
• Public servants serve public rather than private interest.
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CONTEMPORARY ROLES OF PUBLIC

SERVICE
• The New Public Management refers to a series of novel approaches to
public administration and management in the 1980s.
• The NPM model arose in reaction to the limitations of the old public
administration in adjusting to the demands of a competitive market economy.
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PJJ-UUM
CONTEMPORARY ROLES OF PUBLIC

SERVICE (cont’d)
• The key elements of New Public Management:
• An attention to lessons from private-sector management;
• The growth both of hands-on “management”, in its own rights and not as an offshoot of
professionalism, and of “arm’s-length” organisations where policy implementation is
organisationally distanced from the policymakers (as opposed to the “inter-personal”
distancing of the policy/administration split);
• A focus upon entrepreneurial leadership within public service organisations;
• An emphasis on input and output control and evaluation and on performance
management and audit;
• The disaggregation of public services to their most basic units and a focus on their
cost management; and
• The growth of use of markets, competition and contracts for resource allocation and
service delivery within public services.
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ISSUES AND CHALLENGES IN THE PUBLIC

SECTOR
• Key challenges facing the public sector leaders:
• Increasing pace of change
• Technological development
• Changing perceptions
• Increasing expectations
• Citizen empowerment
• Changing workforce
• Changing environment
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PJJ-UUM
ISSUES AND CHALLENGES IN THE PUBLIC

SECTOR (cont’d)
• Delivering effective and efficient public services in a fiscally constrained
environment:
• Since the global recession, reduced public revenue and increased levels of national
debt have become part of our broader environment.
• Some issues and challenges in the public sector:
• Consolidating nations competitiveness
• Managing the economic growth based on equity
• Generating human potential for excellence performance
• Public service reform
• Professionalism in public service
• Stakeholder and client expectation
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HIGH-PERFORMANCE CULTURE LEADER

• With several reforms were made in the Malaysian public service, performance
has been highlighted as the main emphasis in delivering its services
• Among the moves that can be consider for a high-performance culture are:
• Consolidating nation’s competitiveness
• Managing the economic growth based on equity
• Generating human potential for excellence in performance
• Public service reform (as required)
• Stakeholder and client expectation
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PJJ-UUM
Consolidating Nation’s Competitiveness

• A nation’s competitiveness depends on the capacity of its industry to innovate and
upgrade.
• In a world of increasingly global competition, nations have become more, not less,
important.
• Competitive advantage is created and sustained through a highly localised process.
• Differences in national values, culture, economic structures, institutions, and history
all contribute to competitive success.
• There are striking differences in the patterns of competitiveness in every country; no
nation can or will be competitive in every or even most industries.
• Ultimately, nations succeed in particular industries because their home environment
is the most forward-looking, dynamic, and challenging.
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Managing the Economic Growth based on

Equity
• Since the financial and economic crises that started in 2008, growth has been
at the centre of the public policy agenda worldwide.
• Need to study the links between economic growth and equity market returns
to evaluate whether structural changes to global growth composition have
implications for longer-term strategic allocations.
• Growth prospects are better in emerging markets than in developed countries
for some decades to come due to favourable demographics and healthier
public finances.
• Empirical evidence in developed and emerging markets does not support the
notion of a structural relationship between economic growth and equity
returns.
• Two main reasons are: (a) some countries are better than others at converting GDP
growth into profit growth, and (b) better growth prospects are often reflected in market
prices.
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Generating Human Potential for Excellence in

Performance
• Work teams are the backbone of contemporary work life.
• A team is a group of people who work together to accomplish something
beyond their individual self-interests; however, not all groups are teams.
• A “high-performance work team” refers to a group of goal-focused individuals
with specialised expertise and complementary skills who collaborate, innovate
and produce consistently superior results.
• The group relentlessly pursues performance excellence through shared goals,
shared leadership, collaboration, open communication, clear role expectations
and group operating rules, early conflict resolution, and a strong sense of
accountability and trust among its members.
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Generating Human Potential for Excellence in

Performance (cont’d)
• To function effectively, a high-performance team also needs:
• A deep sense of purpose and commitment to the team’s members and to the mission.
• Relatively more ambitious performance goals than average teams.
• Mutual accountability and a clear understanding of members’ responsibilities to the
team and individual obligations.
• A diverse range of expertise that complements other team members.
• Interdependence and trust between members.
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Public Service Reform

• Public service reform is a key part of the strategic response to the present
economic situation.
• Sustained and effective reform is critical if the state is to continue to deliver
essential services to the public in an environment of significantly reduced
expenditure and staff numbers.
• The government decided that a renewed wave of reforms should be
developed, building on the progress made to date and re-focusing the
government’s ambition for reform.
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Public Service Reform (cont’d)

• The reform program maintains the necessary emphasis on increasing
efficiency.
• Alongside, there will be a much stronger focus on the delivery of the best
possible outcomes for our people, for our economy and for our society.
• There will be a real and measurable change in the way the public service
designs and delivers its services.
• The plan will be delivered through a focus on service users, on efficiency and
openness, underpinned by a strong emphasis on leadership, capability and
delivery.
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Professionalism in Public Service

• Without appropriate top management, an organisation would not achieve its
optimum performance.
• With sub-standard managers at the top, the performance of an organisation
becomes poor, and operations tend to get blocked – the bottleneck.
• The bottleneck is also present in organisations with lack of systematic mechanisms for
delegation and accountability.
• Although the performance of top managers is crucial, it is as well equally
important to have corresponding quality in the performance at all management
levels.
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Professionalism in Public Service (cont’d)

• Beyond the issue of the incidence of professionals in public service…who
controlled them? And to whom they were accountable?
• For better or worse—or better and worse—much of our government is now in
the hands of professionals (including scientists).
• The choice of these professionals, the determination of their skills, and the
content of their work are now principally determined, not by general
governmental agencies, but by their own professional elites, professional
organisations, and the institutions and faculties of higher education.
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Professionalism in Public Service (cont’d)

• How does the concept of public service professionalism apply across sectors?
• Because public service is not the exclusive domain of government employees, public
service professionals may exist in all three sectors.
• Given this perspective, what defines a public service as professional?
• Should the norms and ethics for public service professionalism differ across sectors?
Do they differ in reality?
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Stakeholder and Client Expectation

• Tips for managing stakeholder and client expectations:
• Identify who the stakeholders are.
• Identify the stakeholder’s preferred method of communication.
• Keep stakeholders engaged throughout the process with timely updates.
• Accurately map expectations.
• Classify the level of communication for each stakeholder.
• Identify which stakeholders will be advocates and which will be road blockers.
• Engage the stakeholders in decision making.
• The manner in which the project is accomplished is vitally important, not just on
delivering the required specifications.
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Stakeholder and Client Expectation (cont’d)

• The public services will not be a success if the important stakeholders and
clients are unhappy with the results.
• One of the definitions of public service success focuses on achieving client
satisfaction.
• The policy makers need to understand and meet the expectations of the one
of the most important stakeholders and the clients.
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GMGA3073 STRATEGIC PUBLIC MANAGEMENT

Questions on Strategy Implementation

Structure Follows Strategy

1. New strategy is created

Basic Issues in Strategy Implementation

General Public Management Issues in Strategy

Specific Public Management Issues in Strategy

EVALUATION AND CONTROL

Key Questions to Address in Evaluating

adapted from Wheelen et al. (2018)

• One of the obstacles to effective control is the difficulty in developing

Using Benchmarking To Evaluate Performance

Strategy 1: Determining Dynamic Direction

Strategy 2: Developing a Solid Organisation

Strategy 3: Managing the Best Human

Strategy 4: Developing Competitive Human

Strategy 5: Encouraging Excellent

Strategy 6: Appreciating Excellent Service

OVERVIEW OF MALAYSIAN PUBLIC SERVICE

MODELS OF PUBLIC SECTOR REFORM

TRADITIONAL ROLES OF PUBLIC SERVICE

CONTEMPORARY ROLES OF PUBLIC

CONTEMPORARY ROLES OF PUBLIC

ISSUES AND CHALLENGES IN THE PUBLIC

ISSUES AND CHALLENGES IN THE PUBLIC

HIGH-PERFORMANCE CULTURE LEADER

Consolidating Nation’s Competitiveness

Managing the Economic Growth based on

Generating Human Potential for Excellence in

Generating Human Potential for Excellence in

Public Service Reform

Public Service Reform (cont’d)

Professionalism in Public Service

Professionalism in Public Service (cont’d)

Professionalism in Public Service (cont’d)

Stakeholder and Client Expectation

Stakeholder and Client Expectation (cont’d)

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