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Public%20Value%20

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Title: Public%20Value%20


1
Public Value Strategic Management
  • José Jorge Saavedra

2
A little bit of history...
  • Sun Tzu The Art of War
  • Carl von Clausewitz About War Prussian military
    philosopher (1780-1831).
  • Strategy comes from the Greek Strategos which
    means a general group of maneuvers taken to
    defeat an enemy in battle

3
The Themes of Strategic Management
  • Relationship between organizational capacities
    and the environment
  • What permits a good fit between the organization
    and its environment?
  • Why are some organizations more successful than
    others?
  • Why do managers have to achieve a more effective
    fit?

4
SWOT Analysis
Source Mintzberg et al., 1998. Learned,
Christensen, Andrews y Guth, 1965
5
Definition of Corporative Strategy
  • Corporate Strategy is the stream of decisions in
    a company that determines and reveals its
    objectives, purposes or goals, produces the
    principal policies and plans to achieve those
    goals and defines the type of businesses the
    company will take, the type of economic and human
    organization that it has or pretends to have, and
    the nature of economic and non-economic
    contribution that it tries to make towards its
    share-holders, employees, clients, and
    communities.
  • Andrews, 1965

6
  • Differences between private and public
    management

7
Relation Between Mission, Values, and
Resources In the private sector there is an
automatic relationship between an increase in the
achievements of the organizational mission and an
increase in usefulness. In the public sector,
organizations get resources by persuading the
respective authorities about the importance of
its objectives and means to receive fiscal
appropriation. The mission of public
organizations do not depend on usefulness, but on
the creation of value and the support of the
authorities.
8
DIFFERENCE BETWEEN PUBLIC AND PRIVATE
SECTOR PRIVATE SECTOR In the private sector,
value-creation is a linear process between
clients and shareholders. Shareholders Organi
zational Product Client PUBLIC SECTOR In the
public sector, value is created by serving the
public mandate, the mission of the organization
and the aspirations of the citizenry.
9
PRIVATE SECTOR Social value is aligned with
financial performance and with organizational
survival.
Social Value
Financial Performance Organizational Survival
Products Services
10
PUBLIC SECTOR Social value is NOT NECESSARILY
aligned with financial performance or
organizational survival.
Financial Performance Organizational Survival

Products Services
Social Value
11
Definition of Corporative Strategy
  • Corporate Strategy is the stream of decisions in
    a company that determines and reveals its
    objectives, purposes or goals, produces the
    principal policies and plans to achieve those
    goals and defines the type of businesses the
    company will take, the type of economic and human
    organization that it has or pretends to have, and
    the nature of economic and non-economic
    contribution that it tries to make towards its
    share-holders, employees, clients, and
    communities.
  • Andrews, 1965

12
Creating Public Value
13
Individuals must be seen as beings that if
given the chance will actively participate in
shaping their own destiny, not only as passive
receptors of ingenious development programs.
(Amartya Sen, 1999)
14
Four models for decision making in the public
sector
  • Rational
  • Bureaucratic
  • Political
  • Cultural

Fuente Adaptado de Graham T. Allison
15
Goals and Principles of Social Management
  • The purpose of Social Management is the creation
    of PUBLIC VALUE by ensuring that public
    interventions contribute significantly to the
    following five principles
  • Reduction of Inequality
  • Reduction of Poverty
  • Strengthening of Democratic States
  • Strengthening Citizenship
  • Promoting Development Effectiveness

16
The Creation of Public Value
  • Public value must be perceived by all citizens or
    society. It must be used or enjoyed collectively.
  • By public we do not imply the simple
    aggregation of individual preferences, but the
    stream of collective decisions regarding what is
    valued and what are the priorities for a given
    community.

17
The Creation of Public Value
  • The concept of Public Value helps managers of
    social development keep focused and gives
    strategic direction to their actions.
  • It can guide their actions with a simple
    reflection Is what we are doing valuable and
    valued by society?

18

Public Value can be created through
  • Pertinent answers to relevant problems of
    beneficiaries and citizens.
  • New opportunities for the community and its
    future generations
  • Processes that build trust, community,
    citizenship, social capital and a stronger
    democracy.
  • Public accountability that demonstrate the good
    use of public funds, governance and
    responsiveness.

19
Public Value
20
Key Questions in Strategic Management
  • What is our Business?
  • Who are our Clients?
  • What is our Value Proposition? How do we get
    support, develop programs and deliver that value?

Peter F. Drucker
21
Issues of Strategic Management
  • 1. What is our core Business?

Peter F. Drucker
22
MISION VISION
  • CORE IDEOLOGY
  • Purpose
  • Core Values
  • ENVISIONED FUTURE
  • BHAG
  • Vivid Description

23
The Creation of Value
  • The creation of value does not occur by accident,
    nor is it determined by law. It depends on a
    deep comprehension of what the population values
    and the development of the organizational
    capacity to deliver solutions to these
    necessities in an effective, equitable, and
    sustainable manner.

24
Issues of Strategic Management
  • 2. Who are our Clients?

Peter F. Drucker
25
Who is the Client?
  • Citizens
  • Beneficiaries/Users
  • Clients
  • Subjects

26
Issues of Strategic Management
  • 3. What is our Value Proposition? How do we get
    support, develop programs and deliver that value?

Peter F. Drucker
27
The role of public interventions
Pobreza en América Latina
Expectations
Public Value
28
Programmatic Management
Public Policy, Programs Projects
Public Value
Authority, Resources Legitimacy
Operational and Organizational Capacity
Political Management
Organizational Management
29
Program Management
  • The objective is to carry out the organizational
    mission and create public value through a package
    of policies, programs, and pertinent projects.
  • To guarantee the pertinence and to strengthen
    social inclusion, these programs should be formed
    or constructed in a participatory manner with the
    multiple actors involved, to achieve their
    participation, compromise, and guarantee a
    successful implementation.

30
Political Management
  • The objective of political management is to
    achieve authorization, resources, support, and
    legitimacy to implement the organizational
    mission.
  • It includes management with politicians,
    legislators, bureaucrats that have supervisory
    power over the organization and decision-making
    power over financing and development of
    activities.
  • It also includes organized civil society, social
    movements, NGOs, the media, the private sector
    and the citizenry. These are key actors and may
    have related interests with the operations of the
    organization.

31
Organizational Management
  • The objective is to have a strong organization
    committed with the mission and with
    organizational capacity to carry out the
    different activities in an effective, efficient,
    equitable, ethical and sustainable fashion.
  • The organizational capacity refers to the fact
    that members of organization are the ones to
    finally implement the strategy.
  • This leads us to think in the skills and
    capabilities that the organization needs and the
    values that define its culture, as well as the
    organizational structure, process and systems.

32
Programmatic Management
Public Policy, Programs Projects
Public Value
Authority, Resources Legitimacy
Operational and Organizational Capacity
Political Management
Organizational Management
33
Six Challenges for Social Management
34
Challenge 1
  • The final objective of public organizations is
    to create public value trough its management,
    which has to contribute significantly to the
    reduction of poverty and inequality as well as
    the strengthening of the democratic States and
    citizenship.

35
Challenge 2
  • Public resources, which are limited or scarce in
    relationship to the necessities or desires of the
    public, are assigned by a political process that
    determines their priority. Public organizations
    should compete effectively for these scarce
    resources.

36
Challenge 3
Citizens have the last word about the
actions to be taken by the government and its
agencies, this voice is expressed by deliberation
mechanisms and politic representation, therefore
public organizations respond to different social
mandates.
37
Challenge 4
People have multiple roles in their
interactions with public organizations. The State
must provide pertinent and quality services to
clients, beneficiaries and subjects. And at the
same time, they have the obligation to inform,
respond and be accountable to the public,
treating all stakeholders with respect because
they are all citizens.
38
Challenge 5
The scope of public management is composed
by interinstitutional networks which will be
called macro management and internal
organizational processes denominated micro
management
39
Challenge 6
Outcomes should not be conceived only as the
delivery of products and services. These outcomes
should be focused on the impact of the products
as well as the quality of the processes that
produce these outcomes.
40
STRATEGIC MANAGEMENT
41
Definition of Strategy
It can be said that an organization has
strategy when its managers and the organization
as a whole have committed to a particular vision
of how to operate and achieve support to
implement a series of activities that create
social value.
42
  • Strategy is a concept that simultaneously
  • Declares the organizations mission and vision in
    its proposal of how to create public value.
  • Determines the source of support and legitimacy
    that will be used to achieve the organizational
    objectives.
  • Defines the areas of action to implement public
    policies, projects, and programs.
  • Explains how the organization will be organized
    and managed to implement the programs and achieve
    the objectives that generate public value.

43
Instruments
44
Instruments to Define Value
  • Revision of Mandates
  • Clarifying Purpose
  • Mission Validation
  • Strategic Planning
  • Participation and Consultation
  • Mission
  • Vision
  • Definition of Mission Vision

45
Instruments to Improve Public Management
  • Stakeholder Analysis
  • Political Mapping
  • Negotiations
  • Leadership
  • Advocacy
  • Networking
  • Political Marketing

46
Instruments to Improve the Programmatic Management
  • Planning
  • Project management
  • Logical framework
  • Monitoring and Evaluation
  • Stakeholder analysis
  • Negotiations
  • Leadership
  • Advocacy
  • Participation
  • Networking
  • Information Technology

47
Instruments to Improve Operational Management
  • Strategic Planning
  • Re-structuring
  • Decentralization
  • Re-engineering
  • Total Quality
  • Service management
  • E-government
  • Privatization
  • Strategic Alliances
  • Performance Measurement
  • Management by Results
  • Variable budget
  • Human Resource Management
  • Hiring by aptitude and attitude
  • Training
  • Evaluation
  • Teamwork
  • Accountability

48
Instruments to Improve the Analysis of
Surroundings
  • PESTI Analysis
  • Political Mapping
  • Stakeholder Analysis
  • Analysis of National Agenda
  • Analysis of Emerging Themes

49
TYPES OF INNOVATIONS
Mandate New mandate, new vision, new objectives
Political Political support, more resources,
greater authority
Programmatic Old objectives, new means
Operational Structure/process/measuring
performance
50
Modern Citizenship
Pobreza en América Latina
  • Civil Rights basic right of freedom, associated
    with courts of law. (Equality before the law)
  • Political Rights right to participate,
    associated with the executive and legislative
    powers (one person one vote)
  • Social Rights right to a minimum level of
    wellbeing, associated with social services
    (education, health, work)
  • Fourth Generation Rights (Environment, future
    generations, cultural identity)

Source Adapted from Will Kymlicka
51
Thank You !
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