A new Strategic Management model Balanced Success A new Strategic Management model

Balanced Success - BSC - what is it? Management tool for all levels of management A means of turning a strategy into action Compass - guarantee of the right course of development Combination of short and longer term success of an organisation

Why do strategies fail to realise? BARRIERS IN INTERNALISATION AND COMMITMENT Understanding and communicating a strategy Participation of the staff Length of the strategy process Awareness of the realisation of the strategy MANAGEMENT BARRIERS Will to shape one’s own future Management systems and attitudes Strategic capacity of managers/management groups PROCESS BARRIERS Excessive emphasis on the budgetary process in management Separate sub-strategies Follow-up and review

Political decision- making Voters, citizens and international stakeholders Political Social-political Public economy; expenditure, revenues and leadership contents and choices capital decisions Political decision- making Effectiveness Resource management Strategic perspectives of public sector Processes and structure Renewal and work capacity activities Governance and management by results Core services; Professional Basic services; Market-oriented security and education, social and leadership infrastructure services health care services services Citizens as tax-payers and customers

Key Questions in Public Leadership What is our strategic foundation - vision and mission statement? How shall we secure that our actions will fulfil the vision, the mission statement, and set targets? What is essential in allocating resources and competencies? How shall we know that we have proceeded in the direction of the vision and the strategic targets?

Balanced Success Strategy as a Process PUTTING STRATEGY INTO ACTION Why do we exist? and what are we accountable for? What kind of the future do we want to have? Strategic Basis Mission Statement Vision What do we need to accomplish in order to fulfil the vision and the mission statement from different perspectives? STRATEGIC PERSPECTIVES Effectiveness Resource Management Processes Structures Renewal Work Capacity ___________ ___________ ______________ ______________ ___________ CRITICAL SUCCESS FACTORS ___________ ______________ ______________ In which issues must we definitely succeed? ___________ ___________ ______________ ______________ ___________ ___________ ______________ ______________ How do we know that we have succeeded? What are different target levels for this year? ______________ ______________ ______________ ______________ ______________ MEASURES/CRITERIA TARGET SETTING ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ Who is in charge of succeeding? Is the strategy balanced? How does the strategy work in practice? DEFINING RESPONSIBILITIES BALANCING PUTTING STRATEGY INTO ACTION

Effectiveness-Processes-Resources-Renewal Critical success factors Goal levels Critical success factors Assessment criteria Min Real Max Issues in which success is crucial in order to implement the vision and the mission statement over the strategic period in question (long-term view) Criterion/measure/ method to identity/follow up the implementation of a critical success factor The goal set for the criterion describing the critical success factor over the operative period in question (short-term view)

Balanced Success - Starting Point for the Future It is essential to concentrate on how a strategy is created in action, not on paper The strategy must be based on the “raison d’être” and shared vision of the future The strategy process must increase competencies and promote continuous learning The strategy process must be based on interaction and involvement Continuous communication is a the key to the a successful strategy process

How to implement BSC? Thorough orientation to the concept Management’s commitment Working process of the management (5-8 days) depending on the applicability of the current strategy and preparedness of the executive group Open information and feedback Consultant as an expert of the process and assessing supervisor of the process Implementation on the other levels of the organisation

Result of the process A compact and communicative strategy basis A decision of perspectives of strategic management Critical success factors derived from the strategy (3 to 5 years) Measures/criteria for success factors Objectives and targets for the forthcoming year Defining responsibilities within the executive group

Advantages of the Balanced Success - BSC Strategy into action Balance between different dimensions of management short and long term operations resources, knowledge, processes and systems Involvement of the whole organisation - strategic management as a vertical and horizontal process A frame for the result management: setting result targets and reporting on results A compact strategy document: controllable communication inside the organisation and with the public Interaction - the strategy does not remain only among the top management Development process under control, there are only a limited number of critical success factors - there is no need to do everything at the same time

Balanced Success Pros of BS-process Potential of BS-process Strategy can be compressed to a small number of papers - less paperwork! Strategy is easier to understand - good for the staff and management Steers the action to the future Focuses on key competencies Takes into account also non-monetary issues Integrates strategic design and budgeting process Clarifies the Management by Results process

Strategic space of a public organisation Basic task Authority Resources Competence Strategic space Responsibility Accountability