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Тема № 22. Strategic management
Word List
Text 1 STRATEGIC MANAGEMENT То understand and shape strategic management in the public context, one should define the term «strategy.» The word «strategy» is used today in many various contexts and has largely become a buzzword used to mean all kinds of things. In managerial practice, use of the term «strategy» is ambiguous and often used concretely in one of the following five meanings: · as apian, a description of amуans to an objective; · as a move or tactic, especially where competition with others is concerned; · as a pattern, something that can be recognized in an organization’s decisions or actions; · as a position, an organization's place in its environment; · as a perspective, how an organization's collective consciousness views the outside world. A strategy reflects an understanding of the essential interrelationship between action, environment, and results and is suitable for guiding the various decision makers and harmonizing their actions. In doing so, a strategy remains in a certain sense abstract. It does not address individual actions or concrete instructions for action. It provides a framework of reference for actions or decisions. Strategic management is about the success-oriented shaping of an organization's long-term development: formulating and implementing a strategy. Furthermore, it is necessary to understand how results are achieved, the possible opportunities and risks inside and outside an organization, and the proper response to them. The challenge consists of acquiring the information needed to answer these questions, formulate the strategy, and adjust it as well as communicate it and find support for it within the organization as a whole. In the modern understanding of the word, strategic management is marked by the following features:
· planned evolution · specific mental attitude · strategic thinking and action as a conscious response · collective learning process · the creation and retention of potential for success. Planned evolution takes into account the recognition that decisions and changes in organizations seldom proceed in leaps and bounds, but often evolve incrementally. Planned evolution is not to be equated with planning but is to be understood as a middle way between pure planning and uncoordinated gradualism. At the heart of strategic management is the way an administration's development is thought out and correspondingly dealt with. Strategic management should manifest itself in a specific mental attitude. Strategic thinking and action require a conscious analysis of the administration's intended development and the measures envisioned. For this, a minimum of liability and concrete results is necessary. In administration, this should be considered in the context of different and partially contradictory logics of action, for example, between politicians and senior managers. In strategic development, these logics of action are made transparent. Strategic thinking and the conscious analysis of strategy at the same time assign senior managers the task of analyzing the objectives and contribution of the administrative structure. In the process, certain tensions towards traditional understandings of leadership in public administration can emerge if it is assumed that these questions are to be addressed not at the management level but solely within the framework of politics and the legislative process. Strategic management as a collective learning process means that a learning process is systematically initiated and its results integrated into everyday administrative activity. From this emerges understanding for a continuous process in which ideas are developed, tested, and, on the basis of experience, revised, discarded, developed further, etc. Ultimately, strategic management aims to retain the success achieved within the administration. The aforementioned features of strategic management and the selected description of strategic management–the shaping of the long-term and success-oriented development of administrative organizations–underscore the fact that managing strategic change represents the core of strategic management. If strategies arc understood not only as plans but also as patterns, the basic processes of change are not only consciously shaped, but also contain emergent elements. As a result, strategic change cannot be completely controlled, but it can be considerably influenced. The conception of strategic management involves integrating various basic elements of the strategic development process. The elements to be examined and included in an integrated conception process are contents, actors, processes, and instruments. The basic elements of conception are briefly described below. Contents What is the object of strategic development? Processes How are strategies implemented? Actors Who participates in strategic development? Instruments How is strategic development supported? In contents, distinctions are often made between strategic issues, objectives, and strategies. These are interrelated bin different content components. Strategic issues serve to determine emphasis and delimit the purpose of strategic action. Objectives provide reference and – in a rational understanding of management set a standard for evaluating success. The strategies already discussed represent the core content of strategic management (as plan, as pattern, ete) lite interplay and interaction among these three content components can vary according to the conception of strategic management.
Actors are the active, participant organizations, groups, individuals in the strategic development process. At the same time, actors are as a rule the senior managers within the administration, politicians, administration employees, and other stakeholders. The most important actors in strategic management are the senior managers in the administration. They bear the main responsibility for strategic processes and contents as well as for the application and integration of instruments. Moreover, where strategic management public administration is concerned, the role of political actors is of great importance. This overview of the process addresses the question how strategies are developed or how strategy develops. In strategic processes, distinctions are typically made between the phases of strategic development or formulation, implementation, and evaluation. Even if these phases are often represented in ideal form as a control circuit, cohesive control systems or cyclically performing strategic processes cannot be assumed in reality. The consideration of processes is important for understanding evidence and functionality of other elements of conception, for they provide insight, for example into how certain strategies or goals come into being or how instruments are applied and developed. For the different tasks and challenges that are to be affected within the framework of strategic management, a number of instruments have emerged and become established. Distinctions can be made between instruments for analysis (e.g. SWOT analysis, portfolio analysis, evaluations), for conception (e.g. mission, vision, planning, goals, indicators), and implementation (e.g., performance and target agreements, budgeting, monitoring). Note:
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