Public Management Development Program - … · Public Management Development Program . ... • Republic Act 6975 entitled An Act Establishing the Philippine National Police under

Management Theory: Public Versus Private Sector

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D. Brian Marson PMDP Faculty

Public Management Development Program

Public and Private Sector: What Are Some of the Differences?

Public Sector

Private Sector

• Public Interest focus • Monopoly • Collaborative • Public Governance • Public Good focus • Due process focus • Intense media scrutiny • Politics • Multiple public

accountabilities • OTHERS?

• Private Interest focus

• Competition

• Competitive

• Private Governance

• Profit focus

• Efficiency focus

• Little media scrutiny

• No politics

• Simpler accountabilities

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The Non Profit Sector – where does it fit?

• People Management

• Process Management

• Planning

• Decision Making

• IT

• Organizational Structures

• Performance Measurement Systems

• Client focus

• OTHERS ?

• ------------------------------ 3

Aren’t there Some Important Management Similarities Between the Sectors?

• Legal Frameworks __________________________ • Organizational Values and Ethics? __________________________ • Planning Timeframes? _______________________ • Policy Development? _________________________ • HR Processes? _______________________________ • Financial Management? ______________________ • Purchasing processes? _______________________ • Organizational Structures? ___________________ • Measurement systems? ______________________ • Client-Citizen balance? ______________________ • Communications? ___________________________ • Leadership skills, knowledge and

values?______________________________________ • OTHERS ? • ------------------------------

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What Are Some of the Management Differences Between the Sectors??

The Public Sector: Balancing Client Interest and Public Interest

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Client Interest Public Interest

Customer Client Claimant Complier Captive

Copyright D.B. Marson 2014

Serving citizens Enforcing the Law

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Summary of Current Management Theory – Comparing the Public and Private Sectors (Dr. Paul Nutt)

http://faculty.cbpp.uaa.alaska.edu/afgjp/PADM610/Comparing%20Public%20and%20Private%20D-M.pdf

Reference- Dr. Paul Nutt, Ohio State University, Journal of Public Administration Research and Theory, 2005

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Segway: What Did Peter Drucker Say About Public Versus Private

Sector Management?

1. He argues that private sector organizations must constantly adapt to changing market forces to do the right things, whereas public sector organizations are not subject to the competitive forces of the marketplace.

2. Therefore, he recommends that public organizations continuously ask themselves these two questions:

“WHAT IS OUR BUSINESS,

….AND WHAT SHOULD IT BE?” 8

Peter Drucker on Why Public Sector Organizations May Underperform Private Sector Organizations

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That Advice Leads Us Directly into our Study of Strategic Management

Strategic Management can be defined as:

"the identification of the purpose of the

organization and the strategies, plans and

actions to achieve the purpose”.

Implementing Effective Strategic Management in the Public Sector

D. BRIAN MARSON DAP PMDP Faculty Member

Public Management Development Program

Peter Drucker:

The Most Important Strategic Question that Public Organizations Should Ask

What is our business, and what should it be?

Why ? - because public organizations are not subject to

the changing market forces that force Private Companies to

constantly rethink their purpose, goals and strategies.

What is Strategic Management?

• Strategic Management can be defined as:

"the identification of the purpose of the organization and the strategies, plans and actions to achieve the purpose”.

• “It is that set of managerial decisions and actions that determine the long term performance of an organization. It involves formulating and implementing strategies that will help in aligning the organisation and its environment to achieve organizational goals."

Overview of Strategic Management

The Strategic Management Process in Detail

PEST and

SWOT ANALYSIS

Mission

Vision &

Values

Update

Set

Measurable

Goals

Goal-

oriented

Strategies Program design and

Implementation

Results

Monitoring

Strategic Management Occurs at Two Major Levels in Government

1. The Whole-of-Government Level (President and Cabinet), and

2. The Department and Agency Level (Secretary and Department and Agency Executives) • Environmental scanning and review of the mission/vision

• Establish overall goals and strategies of the Administration (e.g. President Aquino’s sixteen point plan) and Departmental goals and strategies

• Effective Implementation of the Strategies and Plans

• Performance monitoring , measurement, reporting and plan adjustments at the Secretary and Presidential levels

1. What was the Environment of Government

when President Aquino was Elected ? (PEST)

What was the Government’s 2010 Environment? (PEST Analysis Scan)

e.g. Corruption, and National Security

e.g. Slow Growth and Unemployment

e.g. Internet and Mobile Phones

e.g. Poverty, health, environment

and demographics

Philippine Development Plan 2011 - 2016

Source: National Economic Development Authority

Defining the Government’s Strategic Management Plan

How Did President Aquino Organize to Achieve His Strategic Management Goals and High

Promote Levels of Government Performance ? Pres. Aquino signed EO establishing Cabinet clusters • President Benigno Aquino III has signed Executive Order 43 which

formally establishes the five Cabinet clusters that will address key priority areas of his administration.

• The five Cabinet clusters are:

– Good Governance and Anti-Corruption;

– Human Development and Poverty Reduction;

– Economic Development;

– Security, Justice and Peace;

– Climate Change Adaptation and Mitigation

The Good Governance and Anti-Corruption Cluster Plan

Government of PH: Results-Based Management Framework

Plan for Results

Budget for Results

Implement for Results

Monitor for Results

Evaluate for Results

• President’s

Guideposts

• PDP

• RM

• PIP • MTEF

• OPIF

• GAA/NEP

• ABM/SARO

• ICC

Programming

• PIB

• Agency PAPs

• ICC

Reevaluation

• ODA Review

• APR

• RM Monitoring

• CSC SPMS

• COA Audit

• SER

• MDG

Reports

• MARC I,

MARC II,

PPARC

Results

Sources: National Economic Development Authority, Department

of Budget and Management, AO 25

How the President Monitors Government Performance

-Concept of the Performance Management Process

• PDP/Cluster Action Plans

• Priority Program Commitments

• MFO Targets

• GG Targets

Performance Planning

• Performance Contracts

• Cascading of targets (PBB)

• SPMS

Performance Contracting

• Quarterly Accomplishment Reports

• Report cards

Performance Monitoring

• Agency performance

• Delivery unit performance

• Individual performance

• Ranking of delivery units and individuals

Performance Appraisal

• Performance bonus

• Recognition

Recognition/ Rewards

Philippines Strategic Management-

How the President Monitors Government Performance

Strategic Performance Management System (Individual)

Organizational Outcomes

Good Governance

and Anti-Corruption

Human Development

& Poverty Reduction

Economic Development

Security, Justice, and

Peace

Climate Change

Adaptation

Societal Goals/Outcomes

Sectoral Goals/Outcomes

Financial Stewardship

Internal Process Client Satisfaction Leadership, Learning

and Growth

Major Final Outputs (customer-oriented results)

STR/

SER Socio-

Economic

Report

PPARC Priority

Program

Accountability

Report Card

MARC- I MFO

Accountability

Report Card

MARC- II Management

Accountability

Report Card

Harmonized Results-Based Performance Management System (RBPMS)

To quality for PBB, agencies must meet at least 90% of PPARC and MARC-I, and satisfy MARC-II (good governance conditions)

Should the President Set Performance Targets and How Should He Measure Results ?

Target ? ` Measure ?

Poverty

Reduction

Citizen Service

Concept of the Performance-Based Incentive

Department Performance

Contract

Bureau level targets

Division/unit level targets

Individual level targets

Agency Scorecard

Product and Service Results

Citizen Satisfaction Results

Financial Stewardship Results

Learning and Growth Results

Strategic Management Module Assignment

• QUESTION: Has your department or agency considered and integrated the goals of the Good Governance Cluster Plan in its own strategic management and planning processes? How effectively in your opinion? How would you improve the department’s performance on the Good Governance goals if you were appointed Secretary?

• Try to identify one service delivery improvement initiative, one anti-corruption initiative, and one business environment improvement your agency has implemented as part of the President`s Strategic Management Goals for Good Governance and Anti-Corruption. (Or alternatively, identify one in each goal area that the department/agency could take).

2. Strategic Management at the Department and Agency Level

What is Your Department/Agency’s Purpose?

• Has the Department/Agency legislation, mission and vision been updated since 2010?

• Where is the purpose stated (Legislation? Mission?)

• Is it clear to you? Is it measurable?

• How would you improve it?

• Does it also depend on other departments to achieve the purposes and goals?

How to Remember the Main Steps in Strategic Planning

SCAN

PLAN

ACT

MONITOR

Scanning Tools and Techniques

• PEST or STEP Analysis

• SWOT Analysis

• Porter Five Forces (Private sector or Competitive Public Sector Agencies)

Analyzing the Organization’s Environment (PEST Analysis Scanning)

SWOT Analysis: Analysis of Strengths, Weaknesses, Opportunities, Threats

Porter Five Forces Model (Private Sector)

http://www.justice.gov/jmd/strategic2012-2016/DOJ-Strategic-Plan-2-9-12.pdf

FBI Mission and Values Statement

• Our Mission As an intelligence-driven and a threat-focused national security and law

enforcement organization, the mission of the FBI is to protect and defend the United States against terrorist and foreign intelligence threats, to uphold and enforce the criminal laws of the United States, and to provide leadership and criminal justice services to federal, state, municipal, and international agencies and partners

• Our Motto “Fidelity, Bravery, and Integrity.” • Our Core Values -Rigorous obedience to the Constitution of the United States; -Respect for the dignity of all those we protect; -Compassion; -Fairness; -Uncompromising personal integrity and institutional integrity; -Accountability by accepting responsibility for our actions and decisions and

the consequences of our actions and decisions; and -Leadership, both personal and professional.

FBI Strategic Goals and Measures

DTI: Vision and Mission VISION

• More Prosperous Philippines by 2016

• We see the Philippines occupying its rightful place in a community of nations, prosperous and free.

• Together with business, we are an active and leading partner in propelling the Philippines toward an inclusive, dynamic and thriving economy.

• Our success is anchored on global competitiveness, with social responsibility and consumer welfare as our platform.

• In all these, we adhere strictly to the tenets of professionalism, integrity, and transparency.

• We continue to be the public's Agency of Choice, an organization where creativity, innovation, professional and personal growth find full expression. We are One DTI.

MISSION

• Enabling Business Enabling business environment /reduces cost of doing business to facilitate trade and investments

• Global Competitiveness

• Value chain and industry cluster management

• Empowering Consumers

• Safe and reasonably-priced products and services

• Supply chain management

Details Published: 11 April 2014

DTI: Mandate and Strategic Goals

MANDATE: The DTI is responsible for realizing the country's goal of globally competitive and innovative industry and

services sector that contribute to inclusive growth and employment generation.

GOALS: Pursuant to Philippine Development Plan (PDP) 2011-2016, we shall endeavor to improve the business environment, increase productivity and efficiency, and enhance consumer welfare. By 2016, the following would have been achieved:

Goal 1 - Improve country's competitiveness. Land in the top one-third ranking (for country's competitive environment for the firms) in major international surveys;

Goal 2 - Generate 4.6M employment from industry and services sector, 2M of which shall come from MSME sector;

Goal 3 - Increase the level of awareness of consumers on their rights and responsibilities from 50% to 80%.

MFOs: To attain the above-mentioned goals, we need to expand exports, increase investments, develop and promote MSMEs, and enhance consumer welfare and protection. These should be accomplished by the following major final outputs (MFOs):

MFO 1: Trade and Industry Policy Formulation Services;

MFO 2: Trade and Investment Promotion Services;

MFO 3: Technical Advisory Services;

MFO 4: Consumer Protection Services;

MFO 5: Business Regulation Services.

GOOD GOVERNANCE; In sharing President Benigno S. Aquino III's aspirations, we commit to effect good governance by delivering public service that is predictable, participatory, accountable, efficient, transparent, and honest.

Details Published: 13 December 2013

The Philippine National Police- Mission Vision and Values

OUR VISION • In the next 20 years, the Philippine National Police (PNP) envisions to evolve into a highly-professional, dynamic and

motivated organization working in partnership with a responsive community towards the attainment of a safe place to live, work, invest and do business.

OUR MANDATE • Republic Act 6975 entitled An Act Establishing the Philippine National Police under a reorganized Department of the

Interior and Local Government and Other Purposes as amended by RA 8551 Philippine National Police Reform and Reorganization Act of 1998 and further amended by RA 9708.

OUR PHILOSOPHY • Service, Honor and Justice OUR CORE VALUES • Maka-Diyos (God-fearing) • Makabayan (Nationalistic) • Makatao (Humane) • Makakalikasan (Environment -Friendly OUR MISSION • The PNP shall enforce the law, prevent and control crimes, maintain peace and order, and ensure public safety and

internal security with the active support of the community. OUR FUNCTIONS • Law Enforcement. • Maintain peace and order. • Prevents and investigates crimes and bring offenders to justice. • Exercise the vested powers from the Philippine Constitution and pertinent laws. • Detain an arrested person for a period not beyond what is prescribed by law. • Implements pertinent laws and regulations on firearms and explosives control. • Supervise and control the training and operations of security agencies

PNP: Strategic Plans and Programs • To rationalize the overall institutional framework for the country's policing

system by clearly delineating and defining the coordination of police functions and structures;

• To enhance the focus and coordination of police functions and operations through a national internal security policy and strategy;

• To reengineer the police system towards strengthening police oversight; remove institutionalized mechanisms that undermine unity of command and internal management authority in the PNP, which renders the organization vulnerable to undue politicization and corruption;

• To fortify the institutional capabilities of the PNP by improving administrative and operational coherence and efficiency; and to strengthen the police stations with the end goal of enhancing the quality of police services and relationships with the community.

• To streamline institutional mechanisms and procedures in order to promote speedy access to justice and legal protection; ensure police neutrality and non-discrimination; and foster respect for human rights and gender neutrality;

• To strengthen institutional mechanisms for the recruitment, training, and maintenance of a corps of competent, well-compensated, and motivated professional police force imbued with integrity, industry, and a high sense of duty and honor; and

• To clarify and instill a culture of public accountability in the PNP and among its personnel.

PNP: C Key Results Areas • 12 Key Result Areas • 1. NATIONAL POLICY & INSTITUTIONAL DEVELOPMENT - to formulate and implement a national internal security policy and strategy; rationalize the overall

institutional framework of the police system; improve the functional delineation and coordination between law enforcement agencies and the conventional police institutions; remove institutional mechanisms that render the PNP vulnerable to politicization and erode its unity of command and internal management authority; strengthen the NAPOLCOM as body tasked with the formulation of rules, regulations and standards for the entire police system; adopt mechanisms for institutional continuity and stability, particularly in police leadership; and firmly establish a self-administering and managing professional PNP.

• 2. POLICE OPERATIONS - to initiate reforms in rules and procedures in the conduct of police operations; provide police stations with the appropriate work tools and strengthen crime research to support more effective crime management operations.

• 3. FACILITIES DEVELOPMENT - to upgrade physical facilities and equipment in support to police field operations, including the updating of police equipment standards and the development of a multi-year financing and procurement plan; development and upgrading of the facilities, equipment, and physical set-up of the PNP Crime Laboratory; and the provision of model infrastructure for police stations and substations. An important component of this program is the improvement of capacities for the management and preservation of police evidence.

• 4. HUMAN RESOURCES MANAGEMENT & DEVELOPMENT - to initiate policy reforms in human resource development and improve the human resources management systems including staffing, recruitment and selection, personnel administration, career development and promotion, police remuneration, and police education and training, performance monitoring and evaluation, and police discipline. Two important components of this program include the reengineering of the institutional framework of police education and training and particularly strengthening the capacities and organization of the Philippine Public Safety College, integrating all police training therein, and strengthening police education and training curricula; and the establishment of a PNP Pension and Insurance Corporation.

• 5. ADMINISTRATIVE & FINANCIAL MANAGEMENT - to reform and strengthen the resource generation capacity of the PNP, streamline and improve the entire financial management system by infusing more appropriate tools that will allow systematic linkage between strategic and operational plans, budget prioritization and detail formulation, and decentralize administrative and financial management to the appropriate enterprise units in the field, while strengthening and integrating oversight administrative and financial management functions.

• 6. STRATEGIC PLANNING & PERFORMANCE MANAGEMENT - to design and institutionalize a strategic planning system within the PNP; strengthen operational planning capacities of mission-critical units; develop results- based monitoring and evaluation systems which will be run at the operational and oversight levels of the PNP organization. An essential component of this program will be the formulation and implementation of a Crime Indicators System that will identify an appropriate set of indicators that will guide the monitoring and evaluation of the country’s crime situation and its performance, and the corresponding procedures for data generation and reporting.

• 7. INFORMATION & COMMUNICATION TECHNOLOGY - to develop and implement a PNP Integrated Crime Management Information System, or CMIS. The system will be designed to work as part of the broader criminal justice information system architecture. The PNP CMIS will operate at the police station level providing transaction processing modules that will feed into a crime database, tracking, and monitoring system that will enable crime mapping and analysis at station and higher geographical levels.

• 8. DEMONSTRATION OF EXCELLENCE THROUGH DEVELOPMENT OF BEST PRACTICES - to demonstrate the effectiveness of the fundamental institutional and system reforms by combining them with a more comprehensive locality or community-based peace and order planning and management that will involve various stakeholders.

• 9. PUBLIC INFORMATION AND ADVOCACY - to support the implementation of the transformation program from start to finish by providing broad and stakeholder information, education and advocacy strategies and interventions which will engender active cooperation and support.

• 10. REFORM MANAGEMENT - take the lead in implementing the medium-term reform program by enhancing the institutional framework and operating mechanisms of the PNP; prepare plans and manage the entire change management and day-to-day reform development, content synchronization, and implementation of management processes.

• 11. ANTI-CORRUPTION - Envisioned to prevent the misuse of power and position in the PNP organization which undermines the integrity of police personnel along with the promotion of police integrity and morality as primer law enforcers.

• 12. PROMOTION OF HUMAN RIGHTS - Aimed to promote human rights as a basic value in the conduct of operations and in accordance with the international standards of human rights and policing.

Exercise 1

Environmental Scanning:

PEST Analysis

Strategic Planning Exercise 1 PNP Environmental Scanning

• For the Philippine National Police, complete a PEST Analysis (External Scan)

– POLITICAL FACTORS __________________________________________________________________________________________________________

– ECONOMIC FACTORS

__________________________________________________________________________________________________________

– SOCIAL FACTORS

__________________________________________________________________________________________________________

– TECHNOLOGICAL FACTORS

__________________________________________________________________________________________________________

Exercise 2

• Reviewing and Aligning the Mission, Vision and Values

Statements

Exercise in Strategic Planning: Reviewing Mission, Vision and Values Statements

• EXERCISE: Review the attached Mission, Vision and Values statement of the Philippine National Police and identify opportunities for improvement and for any improvements in strategic alignment of the MV and Values Statements – MISSION STATEMENT

____________________________________________________________________________________________________________________________________________________________________________________________________________

– VISION STATEMENT

____________________________________________________________________________________________________________________________________________________________________________________________________________

– VALUES STATEMENT

____________________________________________________________________________________________________________________________________________________________________________________________________________

-ALIGNMENT ___________________________________________________________

______________________________________________________________________

Exercise 3

Setting Strategic Goals and Performance Measures

Strategic Planning Exercise 3A: Setting Strategic Goals and Performance Measures

• Set three strategic goals for the Philippine National Police, and one performance measure for each goal GOAL 1

______________________________________________________________________________________________________________________________

• Measure _____________________________

GOAL 2 ______________________________________________________________________________________________________________________________

• Measure ______________________________

GOAL 3

______________________________________________________________________________________________________________________________

• Measure _____________________________

Question: How Does Strategic Management Relate to Strategic Leadership?

Strategic Leadership for High Organizational Performance: Defining it in the Public Sector*

• “Leadership is having the vision of where you want the organization to go, finding the people and resources to take it there, and letting them do the job with guidance and direction along the way.”

• “A leader can inspire, provide clear vision, demonstrate respect for colleagues, and get results.”

• “A leader is someone who can guide an organization by inspiring the staff to work

together towards the mission of the organization. A good leader encourages staff members to work towards his or her potential.”

• “Leadership is ensuring that your employees are given a chance to do their jobs, all the tools they need to function, and a clear direction. Afterwards they must be given the credit for what they do and be commended. The leader sets the standards and goals, leads by example, and tries to inspire employees to reach their full potential.”

* D. B. Marson research study on effective public sector leadership

THE THREE KEY ROLES OF STRATEGIC LEADERSHIP*

PURPOSE PEOPLE ORGANIZATIONAL

PERFORMANCE

LEADING STRATEGIC CHANGE

*copyright D. B. Marson 2008

ORGANIZATIONAL LEADERSHIP

AND STRATEGIC

MANAGEMENT

Strategic Management Also Requires the Effective Leadership of Change

• What are the attributes of leaders who effectively manage strategic change?

• What values, knowledge and skills are most important?

• What strategic leadership attributes most need improvement in the public sector?

Effective Public Sector Leadership –The Canadian Research*

• The top-ranked attributes of effective leadership identified as follows by 440 federal government executives (in rank order): 1. Honesty and integrity 2. Communication and listening skills 3. Respect and Caring for people 4. Team player/Team builder 5. Visioning skills 6. Judgement and decision making skills 7. Sets clear goals 8. Inspires and motivates staff 9. Knows the business 10. Empowers staff 11. Strategic planning skills 12. Management of change skills.

*Copyright D. B. Marson

Gaps in Strategic Change Leadership

Copyright Brian Marson 2012

Gaps in Strategic Change Leadership: Developing Your Improvement Plan

Copyright Brian Marson 2012

A Strength or Weakness for You?

How Will You Improve Develop Your Strategic

Leadership Competencies?

Management and Strategic Leadership for High Performance

YOUR CHALLENGE

TO USE YOUR PMDP

STRATEGIC MANAGEMENT

AND LEADERSHIP SKILLS

TO SERVE THE NATION

Salamat Po!

Annex: Other Resources Specifically

on Strategic Planning in the Public Sector

The Classic How-to Book on Strategic Planning for the Public Sector -by John Bryson

Bryson’s Ten Steps for Strategic Planning

1. Initiate and agree upon a strategic planning process. 2. Identify organizational mandates. 3. Clarify organizational mission and values. 4. Assess the organization's external and internal

environments to identify strengths, weaknesses, opportunities, and threats.

5. Identify the strategic issues facing the organization. 6. Formulate strategies to manage these issues. 7. Review and adopt the strategic plan or plans. 8. Establish an effective organizational vision. 9. Develop an effective implementation process. 10. Reassess strategies and the strategic planning process.