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STRATEGIC MANAGEMENT IN PUBLIC & NON-PROFIT ORGANISATIONS

BY ADE AKANBI

different political imperatives.LESSON OUTCOMES AIM ‡To raise learners knowledge of strategic decision making ‡To raise learners awareness of key tensions within strategic management OBJECTIVES ‡Evaluate the impact of organisational culture on strategic decisions ‡Investigate / identify key tensions including national / local pressures. issues of collaboration / competition ‡Evaluate the impact of these tensions on the development of organisational culture and organisational strategy BY ADE AKANBI .

RECAP What is Management? strategic Strategic management can be described as the identification of the purpose of the organisation and the plans and actions to achieve a goal which involves utilization of resources to enhance performance of organisation in their external environment. BY ADE AKANBI .

looking in and profit Organisations looking ahead. Balancing strategic ‡Public is owned by the state and management s outward-. and BY ADE AKANBI strategy monitoring . Strategic management comprises five key facets: goal-setting. move health sector reform ‡Public organisation source of fund is forward. strategy implementation. voluntary and variable managing strategically sources (Brinkerhoff 1991). inward-. analysis. concerned with the distribution of and forward-looking functions public value in the sense of helps you develop a vision and a delivering equitably to all citizen but strategy for where and how to the later is not. strategy formation.RECAP Strategic management involves ‡Difference Between Public & Nonlooking out. from taxes of all citizens while non Balancing these different profit organisation is from a variety perspectives is the essence of of private.

RECAP ‡Techniques To Explore External Environment ‡Identifying Strategic Capability I. scenario Techniques ‡Discussed External Environment Of Organisation & Impact On Strategy.E Swot Analysis. basic . align based.Goal Based. BY ADE AKANBI .

STRATEGIC MANAGEMENT PROCESS BY ADE AKANBI .

STRATEGIC DECISION MAKING BY ADE AKANBI .

STRATEGIC DECISION MAKING Key issues affecting organisational strategy ‡ Publicness ‡Strategic purpose ‡Corporate governance ‡Culture and strategic drift BY ADE AKANBI .

This is delivered by identifying and defining the mission and objectives of the organisation. This has become a key issue over the past few years because of new stricter rules and legislations after the failure of few companies in this area(ISSUES AROUND SEPARATION OF OWNERSHIP FROM MANAGEMENT. Corporate social responsibility defines the policies that the organisation adopts on such matters as poverty. this is influenced/shaped by stakeholders expectations. Ethics examines the way the organisation sets its standards and conduct in the society. Stakeholders are those individuals or groups who depend on an organisation to fulfil their own goals and who in turn the organisation depends on. BY ADE AKANBI . social responsibilities and ethics as well as governance structure. Corporate governance is concerned with the structure and systems of control by which managers are held accountable to those who have legitimate stake in the organisation. green issues and working conditions.INCREASE ACCOUNTABILITY TO WIDER STAKEHOLDER INTERESETS). However. the purpose of the strategy must be followed.STRATEGIC PURPOSE For effective mgt.

Let consider this questions? ‡What is the are of activity and what should it be ‡What kind of organisation do we whish to be ‡What is the relative importance of stakeholders ‡Do we want to grow the organisation ‡What is the relationship with our immediate environment and society in general BY ADE AKANBI ‡How do we bring all this consideration together .IMPLICATION OF CORPORATE GOVERNANCE ON STRATEGY Discussion Strategy is only a means to an end that being the purpose of the organisation. If so should the response to a particular stakeholder determine strategic purpose or brother stakeholder interest-at the extreme of society or social good. It is impossible to develop strategy if the purpose remain unclear.

what is the implication of the different views for manager development of organisational strategy? BY ADE AKANBI .vision.For example emergency services such as ambulance and fire brigades have an overriding commitment to saving life that employees are committed to the extent that they will break strike action or risk their own lives to attend to emergencies when life is threatened. From the reading given.IMPLICATION OF CORPORATE GOVERNANCE ON STRATEGY Another way of viewing purpose is through statements of corporate values(underlying principles.mission and objectives.

decline in share price.if drift continues. there will be symptoms that become evident: downturn in financial performance.RELATIONSHIP BETWEEN CULTURE AND STRATEGY Another key issues affecting development of organisational strategy is history and culture of an organisation. This may contribute to its strategic capabilities but may also give rise to strategic drift as strategy develops incrementally on the basics of such influences and fail to keep pace with the changing environment. But the question is how long and to what extent can managers rely on incremental change building on the past being sufficient?However. BY ADE AKANBI . transformation change or death. loss of market share to competitors.

Secondly . beliefs. behaviour and paradigm(taken for granted assumptions). Organisational culture has four layers: values. Culture is the basic assumptions and beliefs that are shared by members of the organisation that operate unconsciously and define in a basic taken for granted fashion of an organisation view of itself and environment.In other words cultural and institutional influences inform and constraint strategic development of organisation. it is a driver of strategy BY ADE AKANBI . identify and manage what is taken for granted). The taken for granted nature of culture makes it centrally important in relation to strategy because it is difficult to manage(difficult to observe.

physical and symbolic manifestations of a culture that inform and are informed by taken for granted as assumptions or paradigm.CULTURAL WEB This shows the behaviour. Routines: are the way we do things around here on day to day basis Rituals: are activities that emphasise what is important in culture Symbols: acts or events that convey meaning over and above their functional purpose Control system: measurement and reward systems that emphasise what is important to monitor in an organisation Structure: likely to reflect power and show important roles and AKANBI BY ADE relationship. .

Porter proposes three different strategies to achieve competitive advantage: overall cost leadership.KEY TENSIONS ‡ Maintaining competitive advantage. BY ADE AKANBI . ‡ Competition and collaboration : this may be a way of achieving advantage and avoiding competition . In public sector. the bases on which the organisation chooses to achieve superior quality of services in competition for funding. that is how it provides best value.(public/private collaboration) ‡ It is important to note that collaboration with competitors is not as easy as it sounds. gaining more leverage from public investment may require collaboration to raise overall standards of the sector. differentiation and focus. For public and non-profit organisation.

are organized and are managed.KEY TENSIONS Local pressures Home demand factors: The nature of domestic customers Factor conditions: refers to factors of production(land. labour. industry structure and rivalry:The conditions in a country that determine how companies are established. and that determine the characteristics of domestic competition BY ADE AKANBI . raw materials) Firm strategy.

country specific differences. technical standards. ‡Government drivers: trade policies. competitors global strategies BY ADE AKANBI . host government policies ‡Cost drivers: scale economies. transferable marketing. global customers.KEY TENSIONS National pressures ‡Market drivers: similar customer needs. logistics ‡Competitive drivers: interdependence between countries.

‡ Campbell.G. W (2010) Strategic Management and Competitive Advantage: Concepts and Cases. Stonehouse. and Hesterly. Scholes. G.8th Edition. J. Oxford: Butterworth Heinemann ‡ Clarke-Hill.London: Prentice Hall.3rd Edition .B. K. England:Prentice Hall BY ADE AKANBI . K and Whittington.(1995) Cases in Strategic Management. London: Pitman Publishing ‡ Johnson.INDICATIVE READING ‡ Barney.(2008) Exploring Corporate Strategy. C and Glaister.(2001) Business Strategy: An Introduction..2nd Edition. D.R.. and Houston.