1 A Model of Public Sector Strategy by Professor Allan Fels AO Professor of Government The Australia and New Zealand School of Government Scuola Nazionale dell'Amministrazione September 2013 Italy

2 What should be done? What may be done? What can be done?

3 Public Sector Strategy Model Authorising Environment Public Value Operating Capability

4 Elements of Public Value Results Outcomes Outputs Fair, proper use of government power Not excessive Not underuse Fair process Fairness Fair opportunity? Fair outcome?

5 Public Value: Competition Law Public Value Successful prosecutions? Proper use of government power Fair opportunity Competitive economy Ethical behaviour and trust in Government A fair society Compliance with law

6 Authorising Environment The Authorising Environment: Its Drivers and Outputs Values Resource Allocations (budgets) Laws Regulations Court decisions Government policy needs Political parties Social attitudes Business interest groups Media Courts Advocacy Random events External pressures Drivers Outputs

7 Operating Capability Legal powers Resources people money skills culture international assistance

8 Equilibrium Interrelationship Authorising Environment Public Value Operating Capability

9Misalignment Authorising Environment Public Value Operating Capability

10Misalignment Authorising Environment Public Value Operating Capability

11 The Public Value, Operating Capability and Authorising Environment Framework Authorising Environment Public Value Operating Capability A B C D

12 Co-producers (Competition Law) Business Law firms Government Courts Other governments and regulators Consumers

13 Authorising Environment Operating Capability Public Value Co- Producers Co-producers in a strategy model

14 Strategy decisions need to take all factors into account