1 Strategic Management of Local Government Reported by John C.T. Ko June 23, 2005

2 Framework of Organization Development in Local Government Structure of the LGU Process in the LGU Culture of the LGU LGU Strategies Organization al set-up and roles linkages Organizational values norms and traditions management of culture Communication decision-making problem-solving leadership and authority Strategic management Organizational philosophy Strategic action Organization Development

3 1. Introduction & Definitions 2. Strategizing for Modern Challenges 3. Planning the Process 4. Summary Outline of the Presentation

4 1. Introduction & Definitions ☆ However the term STRATEGIC MANAGEMENT should encompass SP. Strategic management focuses not on the preparation of planning documents, but rather on developing and managing the organization’s capacity to engage in a continuous interactive process of assessing and adjusting the fit between the organization’s mission, environment and operations, and making the best use of its strengths. What is Strategic Management? In literature, strategic management ≒ strategic planning, mission modeling, performance improvement process, visioning strategic thinking etc.

5 General Purposes of LGs Provinces – to serve as a dynamic mechanism for developmental process & effective governance of LGUs within its territorial jurisdiction; Cities – to serve as a general-purpose government for the coordination & delivery of basic, regular & direct services & effective governance of the inhabitants within its territorial jurisdiction; Municipalities – same as above.

6 Development Virtues of LGs They have great potential for: defining local needs and conditions; managing local resources more effectively; putting government closer to people; making planning responsive; ensuring democratic accountability; and instituting popular participation.

7 LGU Operations StrategiesEnvironment 2. Strategizing for Modern Challenges

8 Key Variables of Strategic Document 1. Vision 2. Mission / Purpose / Goals 3. Core Work Values 4. Internal & External Environment 5. Stakeholder Analysis 6. Core Strategies / Strategic Plans

9 Elements of Strategic Management Environmental Analysis General Environment Operating Environment Directions for Development Strategic History Current Strategy Organizational Analysis Resources Values Culture Structure Chosen Strategy Goals Policies Programs Realized Strategy Opportunities Threats Strengths Weakness Stakeholder Analysis Strategic Vision

10 3. Planning the Process: How does one Begin? Prerequisites for a Successful Strategy Planning: 1. Full participation and commitment by everyone 2. Recognition of the change and improvement by everyone 3. People’s values and capabilities should be considered 4. Contribution of everyone’s mental models to LGU 5. Willingness of everyone to make LGU’s vision fulfilled

11 Preparing the Strategic Document: Getting Down to It. Documents prepared for workshop consultation:  LGU’s existing development plans;  Outputs from a previous strategic management workshop;  Annual or quarterly reports;  Project monitoring reports;  The Budget; and  Any useful and related material. 

12 Steps in Preparing Strategic Document 1. Vision Setting 2. Developing Mission Statement 3. Articulating Core Work Values 4. Environmental Scanning or Analysis 5. Stakeholder Analysis 6. Development of Core Strategies

13 Vision Setting: Can You See Your LGU’s Future? 1. Specific date; 2. LGU’s customers; 3. LGU’s values and culture; 4. LGU’s core competencies & capabilities; 5. The geographic arena; 6. LGU history, environment, competitors; 7. The ethos of public service; 8. Is it really the ideal you want?; 9. Why the LGU exists; 10. The LGU’s level of leadership/excellence/service/; 11. Quality; and 12. What the LGU is known for, its reputation/image Vision boundaries

14 Developing Mission Statement: What the LGU is at Contents of Mission Statement:  WHAT needs do we respond to?  WHY do we exist?  WHOM do we serve?  WHO are our clients?  WHAT do we do or produce?  HOW do we intend to carry out our vision? Statement example:  Our mission is to serve…(clients) with the…(products & Services) in order to achieve…(why we exist).

15 Articulating Core Work Values: Laying it Down on the Line Column IColumn 2 The way it is now it should be The way you think 1.Long term strategic perspective 2.Energizing leadership 3.Innovation 4.Risk taking 5.and so on Values exercise

16 Environmental Scanning or Analysis: Looking Very Hard Internal Condition (of LGU) External Condition (General LGU environment) Strengths 1. Existence of harbor 2. High quality labor 3. Industrial Cluster Opportunities 1. Demand for OFW 2. Global market linkage 3. Technology outsourcing Weaknesses 1. Power supply shortage 2. Air & water pollution 3. Location inaccessibility Threats 1. Natural disasters 2. Economic recession 3. Terrorism SWOT Analysis

17 Situation Analysis/Environmental Scanning Step 1 Step 2 Step 3 Step 4 Step 5 Strategic Position Scan the environment Assess nature of environment Identify key environment forces Identify strengths & weaknesses Identify key opportunities & threats

18 Local Government Unit Adjacent cities & towns Consumer advocate groups Labor unions Employees of the LGU Special interest groups Private business partners National government Political groups Civil organizations The LGU’s residents Stakeholder Analysis: Who cares about the LGU?

19 Development of Core Strategies: The LGU’s Work Begins Time FrameResponsible Agency ObjectivesStrategic Actions Target/Output Indicator Elements to strategy planning Commitment

20 Summary Strategic management in LG is an on-going process of strategy formulation, review and re- formulation. It involves clear articulation of people’s personal values and work values, since these determine their commitment on the job; a close view of internal and external circumstances and opportunities; and a well-laid map of strategies to deal with current and future demands of the LGU.

21 Thank you! National Palace Museum, Taipei, Taiwan