Strategic Management For Public Sector

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Strategic management is a disciplined effort which allows an organization to make decisions, develop new and innovative ideas and explore opportunities for potential or development. Strategic management can be applied to determine mission, vision, values, objectives, and establish roles and responsibilities in an organization (David 2009; Lane 2000). This paper will look at strategic management for public sector organizations and what specific challenges the public sector poses when applied. The focus will be the nature of strategy planning, implementation, and evaluation activities, and identify potential pitfalls or risks in using a strategic-management approach to decision making. The basis for this will be case studies on the Internal Revenue Service (IRS), and the Federal Emergency Management Agency (FEMA).
The public sector has seen a large influx of private sector principles in the attempt to improve efficiency and effectiveness. The reform movement can be summarized as “New Public Management,” and has been implemented with different results almost worldwide. Traditional models of organization were not well-suited for the future and strategic management represented a positive alternative, one that carries with it a “proactive commitment to the ideal that the purpose of organization is to serve the needs of people, while facilitating the human growth of all participants. The New Public Management (NPM) called for the development of “explicit standards and measures of
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