Presentation on theme: "The Strategic Triangle and Public Value Proposition"— Presentation transcript:
1 The Strategic Triangle and Public Value Proposition FacilitatorsAnton FlorekBoudewijn van VelzenColeen JacksonWilfried Schley
2 The Context for Adaptive Leadership A key task of the resourceful leader is to effectivelyinterpret their context and utilise the resourcesavailable to them to deliver better outcomes forchildren and young people. This process is one ofchange: shaping and transforming their organisationand influencing the context in which it operates overtime.Resourceful leadership: how directors of children’s services improve outcomes for children.National College/C4EO 2011
3 FOUR KEY ANALYTIC IDEAS The “Strategic Triangle”The “Public Value Proposition (Task Environment)The “Authorising Environment”The “Operating Capacity” (Value Chain)
5 WHAT IS PUBLIC VALUE? For Moore public managers create public value. “The problem is that they cannot know for sure whatthat is. Even if they could be sure today, they wouldhave to doubt tomorrow, for by then the politicalaspirations and public needs that give point to theirefforts might well have changed”Moore, (1995)
6 Is trusted by the public Creating public value is about ensuring that social goals are delivered in a way that is perceived as:Legitimate; andIs trusted by the publicMoore, (1995)
7 CREATING PUBLIC VALUE The Private Sector aims to create private value Financial ProfitThe Public Sector aims to create public value?
8 A useful, conditional conception of public value can be envisioned by public managers if they integrate:(1) substantive judgments of what would be valuable and effective;(2) a diagnosis of political expectations; and(3) hard-headed calculations of what is operationally feasible.Moore, (1995)
9 CREATING PUBLIC VALUE “In short, in envisioning public value, managers must find a way to integrate politics, substanceand administration”. (Moore 1995)AuthorisedValuableDone
10 The strategic triangle model posits that a strategy for a public sector organisation must meet three broad tests.It must:be aimed at creating something substantively valuable (i.e. constitute public value);be legitimate and politically sustainable (i.e. attract sufficient ongoing support – and concomitant resources – from the authorising environment, that is, from political and other stakeholders taken as a whole, with due recognition of their differential power); andbe operationally and administratively feasible (i.e. doable with the available organisational and external capabilities needed to produce it)
11 The Strategic Triangle Legitimate & politicallysustainableAuthorisingEnvironmentPublicValuePropositionOperationally &administratively feasibleOperatingCapacitySubstantivelyvaluable
12 Functions of the Strategic Triangle To help public managers position their enterprises in complex, dynamic environmentsTo focus and distribute managerial attention across their “Task Environment” and their “Authorising Environment”To help them envision a sustainable Public Value proposition to be pursued (Question zero)
13 The Private Sector aims to create private value Financial ProfitThe Public Sector aims to create Public ValueWho Decides?
14 THE REALITY OF PUBLIC MANAGEMENT Incoherent, fickle mandates emerging from a chaotic authorising environment
15 Stakeholders / Authorising Environment People who can say Yes or No or influence those who can say Yes or NoCourtsParliamentLocal AuthoritySoSUnionsChief ExecutiveStaff AssociationsDirectorMediaDirect reportsStaffLobby GroupsSame people different viewsTaxpayersCitizens
16 The Strategic Triangle – Mark Moore Three Key QuestionsIs it administratively and operationally possible?Is it politically and legally possible?Is the purpose publicly valuable?Three Key ActivitiesManaging downward towards improving the operating capacity for achieving the desired purpose.Managing upward, towards politics, to get or maintain legitimacy and support for that purposeJudging the value of your imagined purposeMoore M H (1995) Creating Public Value, Cambridge, Massachusetts: Harvard University Press.
17 “OPERATIONAL CAPACITY” AND THE “VALUE CHAIN” Operational Capacity: Assets and capabilities entrusted to manager (plus those that the manager can influence required to achieve the desired results) Value Chain: Process by which tangible assets like money, social resources, ideas, etc. are deployed to produce particular results
18 THE VALUE CHAIN WITHIN THE “OPERATING CAPACITY” The boundary ofyour ownorganisationMoney basedi.e. anything that can be purchasedbuildingsequipmentpeoples timeProgrammesProcessesProceduresCLIENTOUMSPOLICYUTMESINPUTSOUTPUTSAuthority basedthe unique resource only available to authorities to obligate citizens to do what they would not volunteer to doPartners&Co-ProducersThe boundary of your OperatingCapacity
19 INPUTS & OUTPUTSPublic managers are not limited, as they are in the private sector, to the provision of goods and services; “often public managers are in the business of imposing obligations not providing services."Probably the public managers most commonly thought to be engaged in this “retail delivery of obligations” are those in policing.Turbitt, (2011)
20 THREE KEY QUESTIONS Is it administratively and operationally possible? Is it politically and legally possible?Is the purpose publicly valuable?
21 WHY IS (the concept of) PUBLIC VALUE USEFUL? Public value offers a more holistic way of thinking about goals and performance of public policy. It is a theory that works comfortably alongside systems thinking and strategic analysis, and is therefore well-suited to cross-cutting work (tackling the so-called ‘wicked-issues’). By applying a public value test to statements of goals, outcomes and vision statements, it can aid decision-making.
22 Moore emphasises the ‘co-production’ of outcomes achieved by public managers and public authorities working together with their clients. Indeed the essence of co-production, and thus the successful creation of public value, is dissolution of the boundaries between client and provider. The legitimacy of public bodies grows as their accountability to the public is thereby strengthened.
23 Public managers should be seen as: “explorers who, with others, seek to discover, define, and produce public value. Instead of simply devising the means for achieving mandated purposes, they become important agents in helping to discover and define what would be valuable to do. Instead of being responsible only for guaranteeing continuity, they become important innovators in changing what public organisations do and how they do it.”Moore, (1995)
24 The Strategic Triangle and Public Value Proposition FacilitatorsAnton FlorekBoudewijn van VelzenColeen JacksonWilfried Schley
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