8127 - STRATEGIC MANAGEMENT OF PUBLIC INSTITUTIONS

Strategic management is the process of determining which objectives organizations should achieve and how they should go about achieving them. In this perspective, the course aims at providing a conceptual framework and practical knowledge which allows students to (1) develop the competences to analyse critical short and long term issues facing public organizations and (2) make recommendation for strategic solutions. This includes determining which combination of services a public organization should provide, with whom and how it should interact and collaborate to carry out its activity, and how it could go about achieving its objectives effectively. A number of relevant case studies at international level are utilised throughout the course.
At the end of the course students are expected to have: (1) a good understanding of the peculiarities that characterize strategic-management in public sector organizations, (2) the ability to identify and analyse critical long term and short term issues that public sector organizations have to face, (3) the ability to make recommendations for strategic solutions, (4) the ability to promote the implementation of such strategies, appealing to leadership skills too.

The course is divided into four parts.

The first set of sessions comes to terms with what strategy is and how strategy develops within organizations. Theoretical foundations of strategy formation are explored. Specifically, the main patterns for strategy formation are presented, with particular reference to the peculiarities of strategy-making in public sector organizations. This set includes:

• Private Strategic Management and Public Strategic Management
• What does strategy mean?
• Which are the similarities and the differences between private and public strategic management?
• Strategy Thinking Unfolding: From Strategic Planning to Stakeholder Management
• What do we mean when we talk about strategy, strategic analysis and strategic management?
• How does strategic decision-making process develop?
• Why is strategic management and planning important for public sector organizations? What are the limits of strategic planning for public sector organizations?

The second set of sessions tackles the issues related to the tools for strategy formulation in public context: such tools help organizations to create the rational understanding for envisioning and supporting sustainable policies. Specific emphasis is given to the needs of local authorities and municipalities: pursuing public interests and the cost of control imperatives require complex balancing in strategy and policy-making. Decision-making matrix, positioning map, stakeholders' analysis, trend analysis, break-even point analysis are among the strategic tools investigated. This set includes:

• Strategic position: Managerial Tools for Strategy Formulation (1):
• Why is it important to understand an organization's environment for strategic planning, thinking and acting?
• Strategic Choice: Managerial Tools for Strategy Formulation (2):
• What are matrixes for services positioning?
• What is the Stakeholder Map and how is it used?
• Why is it important to understand the stakeholder system of public sector organizations?

The third set of sessions focuses on policy-making in public organizations. Differences and interdependencies between policy and strategy are analysed. In the same way, the main policy issues public organizations face now-days are explored. Then strong attention is dedicated to the effective ways to manage the political process through which priorities are set. Also, the stakeholders' role, the influence of governance model and the impact of institutional and organizational bonds are addressed, while clarifying the policy-making-evaluation-selection process. Control mechanisms, performance and assessment measures are then discussed to complete the framework on policy-management in public organizations.

• Policy-making, Strategy-making and Operations Management (1)
• What is the concept of operations management (OM)?
• How can we use the concept of OM to improve the organization of government services? 

The fourth set of sessions is devoted to exploring the role of public managers in strategy-making. In order to deal effectively with the challenges that public organizations have to face, public managers have to acquire knowledge and skills in strategic management. Such knowledge and skills involve conceptual models, managerial tools but also leadership skills. In fact, public managers have to be able to grasp the complexity of the real world and employ critically theoretical models and managerial tools. A deep understanding of the manager's role as leader, strategist, planner, designer and creative problem solver is developed.

• Strategic leadership.
• What are the main elements of influence and persuasion available to a manager and what are their limits?
• How do different styles of leadership affect individual and group performance? How do leaders affect performance standards and quality in their organizations?
• Writing a Strategic Plan

Teaching methods include lectures and much use of incidents, plenary debates, case discussions and role-playing exercises. Most cases and role-playing exercises are short and describe an actual problem. For an effective use of this teaching method, it is required that students read cases and materials for role-playing exercises carefully before each lecture, so as to be ready to take part actively in the class discussion.

Attending student

Grading for attending student includes: Group project for 30%, Essay for 20%, Final Exam for 30% and Class Participation for 20%.

Non-attending student

Grading for non-attending student: the assessment is done with an oral exam.

• F. LEGA, D. CRISTOFOLI, Strategic Management of Public Organizations, McGraw-Hill, 2005.
• Cases packet prepared by instructor

Additional Readings

• B. AHLSTRAND, J. LAMPEL, H. MINTZBERG,  Strategy Safari: a Guided Tour through the Wilds of Strategic Management, Financial Times Prentice Hall, 1998.
• G. JOHNSON, K. SCHOLES, eds., Exploring Public Sector Strategy, London, Pearson education, 2001.
• B. BOZEMAN, J. STRAUSSMAN, Public Management Strategies. Guidelines for Managerial Effectiveness, San Francisco, Jossey Bass,  1990.