STRATEGIC TRIANGLE Devesh Pandey 2012LE005 Public value Legitima cy and support Operatio nal capability

Strategic management Strategic management consists of analysis of decision and action, which an organization undertakes in order to create and sustain the competitive advantage. Strategic management Analysis of strategic management Decision Action Vision, mission, and strategic management How to implement the plans to meet the objective Implementation of the strategies. Allocation of necessary resources

Question….. First…. What was the important public value the organization sought to produce ? Second… What source of legitimacy and support would be relied upon to authorize the organization to take action and provide the resources necessary to sustain the effort to create the value? Third…. What operational capabilities (including new investment and innovation) would the organization rely on (or have develop) to deliver the desired level ?

PrivatePublic / Govt.Social Enterprises Source of revenueBusinessTaxationFunds, Donors Management Decision Making Shareholders, executives, board of directors Elected representatives, managers Stakeholders, decision makers, donors, venture capitalists Performance Management By services and goods Long term process, by accessing the changes in the scenario By services, impact in the lives of the vulnerable people ReportingSingle bottom line reporting Double bottom line reporting Triple bottom line reporting BeneficiaryShareholders, ownersGeneral public having the purchasing power Vulnerable group, stakeholders Value CreationEconomic valuePublic valueSocial value

The Moore’s Strategic triangle Legitimacy and support Public value Operational capability

Trust Services Outcomes

The public value aims at This relates to substantive aims of public program and the public value outcomes which they try to achieve, by which their impact and performance can be measured. Central point is… Public sources should be used to increase value not only in economic sense but also more broadly in terms of what is valued by the citizen and communication. It includes seeking out opportunity to make significant improvement to the life of the people. a decision maker would on values, legitimacy and the feasibility. Individual must be efficient and innovative in deployment of available resources.

Authorizing environment Aims at support of key external stakeholders, which includes governments, partners, and stakeholders, users, interest groups or donors. The decision maker must be accountable to those groups and to those who engage themselves in an ongoing dialogue over organizational means and ends. The public manager must be therefore use the strategies available to them to build a coalition of support to create their platform of legitimacy.

Operational Capabilities How the enterprise will have to be organize and operate to achieve the declared objective and the resources that can be mobilize to pursue these goals. Resources includes finance, human skills, and technology- are limited if not fixed. Public value must be practically achievable in terms of operational capability.

How to create value within the initiatives of the Social Enterprise Benefit of the enterprise What people will get with the initiatives taken (Stakeholder) Determining the organization’s current strategic objectives Identifying and screening possible strategies for attaining the agreed objectives Translate strategy into action Devising an implementation strategy to manage the organizational change behavior Performance evaluation process and mechanism