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Additional info for Strategic Management in Public and Nonprofit Organizations: Managing Public Concerns in an Era of Limits
The cutbacks represent a drastic shift in the roles of central strategic planning units, who were accustomed to preparing a ‘‘blueprint’’ and then presenting it to the operating unit. As operating managers have taken back the enormous power accumulated by professional planners, the semantics of strategic planning has changed. ’’ The newer term ‘‘strategic management’’ stresses three points: that the strategic planner is clearly the advisor and facilitator to line management decision-makers; that the program executive, not the strategic planner, is the key strategist; that strategic planning is always integrated with other functions of the program management process—program design, organizing, budgeting, staffing, controlling, and evaluating.
Strategic management aims to do three things in setting strategic direction: (1) it sets goals to determine where you want to go and what initiatives you should pursue to get there; (2) it indicates where you wish to concentrate your resources and talent by setting your sights on key result areas; and (3) it gives necessary toplevel and organization-wide visibility and attention to the goals and initiatives being pursued. Guide Priority Use of Resources. Resource scarcity will always be with us.
In less than a decade, formal strategic planning has moved from a pioneering adventure in government, as in the federal Internal Revenue Service or the state of Ohio, and in nonprofit organizations, such as the American Red Cross, to widespread practice. In the late 1980s, the federal Office of Management and Budget could identify only two federal agency strategic plans, and one was classified and not available for professional scrutiny. The Government Performance and Results Act (1993) mandates that by 1997 strategic planning is required in all federal government agencies.