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Article

John Bryson and Lauren Hamilton Edwards

Strategic planning has become a fairly routine and common practice at all levels of government in the United States and elsewhere. It can be part of the broader practice of strategic management that links planning with implementation. Strategic planning can be applied to organizations, collaborations, functions (e.g., transportation or health), and to places ranging from local to national to transnational. Research results are somewhat mixed, but they generally show a positive relationship between strategic planning and improved organizational performance. Much has been learned about public-sector strategic planning over the past several decades but there is much that is not known. There are a variety of approaches to strategic planning. Some are comprehensive process-oriented approaches (i.e., public-sector variants of the Harvard Policy Model, logical incrementalism, stakeholder management, and strategic management systems). Others are more narrowly focused process approaches that are in effect strategies (i.e., strategic negotiations, strategic issues management, and strategic planning as a framework for innovation). Finally, there are content-oriented approaches (i.e., portfolio analyses and competitive forces analysis). The research on public-sector strategic planning has pursued a number of themes. The first concerns what strategic planning “is” theoretically and practically. The approaches mentioned above may be thought of as generic—their ostensive aspect—but they must be applied contingently and sensitively in practice—their performative aspect. Scholars vary in whether they conceptualize strategic planning in a generic or performative way. A second theme concerns attempts to understand whether and how strategic planning “works.” Not surprisingly, how strategic planning is conceptualized and operationalized affects the answers. A third theme focuses on outcomes of strategic planning. The outcomes studied typically have been performance-related, such as efficiency and effectiveness, but some studies focus on intermediate outcomes, such as participation and learning, and a small number focus on a broader range of public values, such as transparency or equity. A final theme looks at what contributes to strategic planning success. Factors related to success include effective leadership, organizational capacity and resources, and participation, among others. A substantial research agenda remains. Public-sector strategic planning is not a single thing, but many things, and can be conceptualized in a variety of ways. Useful findings have come from each of these different conceptualizations through use of a variety of methodologies. This more open approach to research should continue. Given the increasing ubiquity of strategic planning across the globe, the additional insights this research approach can yield into exactly what works best, in which situations, and why, is likely to be helpful for advancing public purposes.

Article

John Bryson and Bert George

Strategic management is an approach to strategizing by public organizations or other entities that integrates strategy formulation and implementation, and typically includes strategic planning to formulate strategies, ways of implementing strategies, and continuous strategic learning. Strategic management can help public organizations or other entities achieve important goals and create public value. Strategy is what links capabilities and aspirations. Four broad types of strategists (as individuals, teams, organizations, and collaborations) in public administration exist: the reactor (low aspirations, low capabilities), the dreamer (high aspirations, low capabilities), the underachiever (low aspirations, high capabilities) and the savvy strategist (high aspirations, high capabilities). There are eight approaches to strategic planning. More comprehensive process approaches include those influenced by the Harvard Policy Model, logical incrementalism, and stakeholder management. More partial process approaches include strategic negotiations, strategic issues management, and strategic planning as a framework for innovation. Finally, two content approaches also exist, namely, portfolio and competitive forces analyses. Seven approaches to strategic management systems can be discerned. These include: the integrated units of management approach (or layered or stacked units of management), strategic issues management approach, contract approach, collaboration approach (including the lead organization, shared governance, and network administrative organization approaches), portfolio management approach, goal or benchmark approach, and hybrid approaches. Strategic planning and management are approaches to identifying and addressing challenges. Neither is a single invariant thing but is instead a set of concepts, processes, procedures, tools, techniques, and practices (and structures in the case of strategic management systems) that must be drawn on selectively and adapted thoughtfully and strategically to specific contexts if they are to help produce desirable results. While there are a variety of generic approaches to both, the boundaries among them are not necessarily clear, and strategic planning and management in practice are typically hybridic. Research is accumulating about which approaches to strategic planning and management work under which circumstances, how, and why, but much work remains to be done.

Article

John A. Yankey and Vera Vogelsang-Coombs

Strategic planning is a key management process in nonprofit organizations and a collaborative methodology for addressing complex community needs. This entry presents an overview of strategic planning, with dual emphasis on the content and format of the final product. It highlights phases and steps in the planning process, along with trends and directions for such planning in the future. Despite its increased use, however, confusion and skepticism about the value of strategic planning remain. Therefore, we describe specific approaches that have yielded good results.

Article

Steven A. Stewart and Allen C. Amason

Since the earliest days of strategic management research, scholars have sought to measure and model the effects of top managers on organizational performance. A watershed moment in this effort came with the 1984 introduction of Hambrick and Mason’s upper echelon view and their contention that firms are a reflection of their top management teams (TMT). An explosion of research followed and hundreds, if not thousands, of manuscripts have since been published on the subject. While a number of excellent reviews of this extensive literature exist, a relative few have asked questions about the overall state and future of the field. We undertook this assessment in an effort to answer some key questions. Are we still making progress on the big questions that gave rise to the upper echelon view, or have we reached a point of diminishing returns with this stream of research? If we are at an inflection point, what are the issues that should drive future inquiry about top management teams?

Article

Throughout history, flood management practice has evolved in response to flood events. This heuristic approach has yielded some important incremental shifts in both policy and planning (from the need to plan at a catchment scale to the recognition that flooding arises from multiple sources and that defenses, no matter how reliable, fail). Progress, however, has been painfully slow and sporadic, but a new, more strategic, approach is now emerging. A strategic approach does not, however, simply sustain an acceptable level of flood defence. Strategic Flood Risk Management (SFRM) is an approach that relies upon an adaptable portfolio of measures and policies to deliver outcomes that are socially just (when assessed against egalitarian, utilitarian, and Rawlsian principles), contribute positively to ecosystem services, and promote resilience. In doing so, SFRM offers a practical policy and planning framework to transform our understanding of risk and move toward a flood-resilient society. A strategic approach to flood management involves much more than simply reducing the chance of damage through the provision of “strong” structures and recognizes adaptive management as much more than simply “wait and see.” SFRM is inherently risk based and implemented through a continuous process of review and adaptation that seeks to actively manage future uncertainty, a characteristic that sets it apart from the linear flood defense planning paradigm based upon a more certain view of the future. In doing so, SFRM accepts there is no silver bullet to flood issues and that people and economies cannot always be protected from flooding. It accepts flooding as an important ecosystem function and that a legitimate ecosystem service is its contribution to flood risk management. Perhaps most importantly, however, SFRM enables the inherent conflicts as well as opportunities that characterize flood management choices to be openly debated, priorities to be set, and difficult investment choices to be made.

Article

The strategic management of technology and innovation is an important contributor to organizational performance and competitiveness. It creates value, assists differentiation, enhances productivity, and guides creativity and initiative. In the face of uncertainty in operating environments, caused especially by rapid technological change, the strategic management of innovation configures capabilities and resources within organizations. These include the capability to search for innovations, select the most advantageous, and appropriate or capture their returns. It involves investing in sources of innovation, such as research and development (R&D) and collaboration with external partners, and using methods for effectively assessing their contributions. Unstable and turbulent operating conditions can disrupt established organizational policies and practices and make planning difficult. As a result, strategies for technology and innovation are necessarily emergent rather than prescriptive, exploratory rather than determinable. Any advantages technology and innovation create are likely to be transitory. The pressing need for greater environmental sustainability, increased focus on the social consequences of innovation, and the impact of new digital and data-rich technologies, add to the challenges of the strategic management of technology and innovation. To address these challenges, attention to physical and intellectual capital needs to be supplemented by greater concern for human, social, and natural capital, and to organizational culture and behavior. This requires the foundation of the strategic management of technology and innovation in the discipline of economics to be complemented by others, such as psychology, organizational behavior, and ethics.

Article

Disproportionate policy response—which is composed of two core concepts, namely policy overreaction and under-reaction—is typically understood to be a lack of “fit” or balance between the costs of a public policy and the benefits deriving from this policy and/or between a policy’s ends and means. The disproportionate policy perspective introduces an intentional component into disproportionate response. It represents a conceptual turn whereby the concepts of policy overreaction and under-reaction are reentering the policy lexicon as types of intentional policy responses that are largely undertaken when political executives are vulnerable to voters. In times of crisis, disproportionate policy responses may be intentionally designed, implemented as planned, and sometimes successful in achieving policy goals and in delivering the political benefits sought by the political executives who design them. The premise underlying this argument is that crises vary in many respects, some of which may incentivize a deliberate crisis response by political executives that is either excessive, or lacking. For example, when crises occur at times of electoral vulnerability, the relevancy of policy instruments’ visibility, theatricality, spectacularity, and popularity may dominate the calculus of crisis management decisions. The same applies in cases where strong negative emotions emerge, and subsequently, political executives may opt to overwhelm hysterical populations cognitively and emotionally, trying to convince them that the policy system is viable.

Article

Arjen Boin, Christer Brown, and James A. Richardson

The response to Hurricane Katrina in 2005 has been widely described as a disaster in itself. Politicians, media, academics, survivors, and the public at large have slammed the federal, state, and local response to this mega disaster. According to the critics, the response was late, ineffective, politically charged, and even influenced by racist motives. But is this criticism true? Was the response really that poor? This article offers a framework for the analysis and assessment of a large-scale response to a mega disaster, which is then applied to the Katrina response (with an emphasis on New Orleans). The article identifies some failings (where the response could and should have been better) but also points to successes that somehow got lost in the politicized aftermath of this disaster. The article demonstrates the importance of a proper framework based on insights from crisis management studies.

Article

Vinícius Chagas Brasil and J.P. Eggers

In competitive strategy, firms manage two primary (non-financial) portfolios—the product portfolio and the innovation portfolio. Portfolio management involves resource allocation to balance the important tradeoff of risk reduction and upside maximization, with important decisions around the evaluation, prioritization and selection of products and innovation projects. These two portfolios are interdependent in ways that create reinforcing dynamics—the innovation portfolio is the array of potential future products, while the product portfolio both informs innovation strategy and provides inputs to future innovation efforts. Additionally, portfolio management processes operate at two levels, which is reflected in the literature's structure. The first is a micro lens which focuses on management frameworks to boost portfolio performance and success through project-level selection tools. This research has its roots in financial portfolio management, relates closely to research on new product development and marketing product management, and explores the effects of portfolio management decisions on other organizational functions (e.g., operations). The second lens is a macro lens on portfolio management research, which considers the portfolio as a whole and integrates key organizational and competitive concepts such as entry timing, portfolio management resource allocation regimes (e.g., real options reasoning), organizational experience, and the culling of products and projects. This literature aims to set portfolio management as higher level organizational decision-making capability that embodies the growth strategy of the organization. The organizational ability to manage both the product and innovation portfolios connects portfolio management to key strategic organizational capabilities, including ambidexterity and dynamic capabilities, and operationalizes strategic flexibility. We therefore view portfolio management as a source of competitive advantage that supports organizational renewal.