Introduction

Since its inception, strategic management has proved its worth in the business sector and beyond,
and it remains a useful tool for both private and public sector organizations in providing
guidance towards the achievement of strategic goals (Joyce, 2015). As opposed to the private
sector, strategic management in the public sector functions as an essential tool used to improve
performance in order to achieve efficiency, effectiveness while still remaining economical in
providing quality service delivery to citizens (Garcia, 1992). The main objective of this essay is
to discuss the concept of strategic management, its application and importance in the public
sector as well as the challenges encountered by strategic management implementation within the
public sector. Therefore, this essay will be divided into four sections. Firstly, the concept of
strategic management will be discussed. Secondly, the importance of strategic management in
the public sector will be laid out. Thirdly, the application of strategic management in the public
sector will  be discussed and different public sector organizations will be used as examples.
Lastly, the challenges encountered when implementing strategic management will be explored.
Discussions on the Concept of Strategic Management
Strategic management in the public sector has been emerging, step by step, as part of modern
public governance and it is a process that governments use for national development (Joyce,
2015). Koteen (1991, p.18) defines strategic managem#ent as “A broad concept that embraces
the entire set of managerial decisions and actions that determine the long-run performance of an
organization. According to Poister and Strieb (1999, p.308), Strategic management is concerned
with strengthening the long-term viability and effectiveness of public sector organizations in
terms of both substantive policy and management capacity. It integrates all other management
processes to provide a systematic, coherent, and effective approach to establishing, attaining,
monitoring, and updating an agency's strategic objectives.
For Poister and Strieb (1999), strategic management is integrative in nature in the sense that it
focuses attention across functional divisions and throughout various organizational levels on
common goals, themes and issues.
Contrary to Poister and Strieb’s perspective
, Lane and Willis (2009) argue that the concept of strategic management is operational in nature,
as it targets the structure of the main activities in the organization and how they are to be carried
out. However, for Lamb (1984), strategic management is an ongoing process that evaluates and
controls the  business and the industries in which the company is involve, assesses its
competitors and sets goals and strategies to meet all existing and potential competitors, and then
reviews each strategy annually or quarterly to determine how it has been implemented and
whether it has succeeded then take corrective measures if it had failed. Moreover, Bozeman
(1983, p. 3) indicates that as a concept,“Strategic management involves the development of
contingent managerial strategies that can effectively respond to changeable  policies and
priorities.” Bozeman’s analysis of strategic management is narrow as it assumes that strategic
management process is driven by changes in policies and priorities (Halachmi, 2000). On the
other hand, Nutt and Backoff (1992) define the concept of strategic management as a  process
that focuses on the long-term health of an organization. It primarily relies on the integration of
strategic planning, resource allocation, and control and evaluation processes to achieve strategic
goals. Whereas Toft (1989, p.6), sees the concept of strategic management as “An advanced and
coherent form of strategic thinking, attempting to extend strategic vision throughout all units of
the organization, encompassi ng every administrative system”. It can therefore be established
that,strategic management serves as a link throughout all organizational activities that provides
coordinated and cooperative approach towards the achievement of organizational goals.
Moreover, Černiauskienė (2014) defines the concept of strategic management as a constant,
dynamic and coherent process in which an organization adapts to the changes of external
environment on time and uses its resources more efficiently. He further notes that process of
strategic management allows developing and implementing organizational strategies as a unit of
decisions that anticipates the most important future objectives of an organization as well as
actions and means of achieving those objectives. Wheelen and Hungers (2006, p.3) share the
same view with Černiauskienė (2014) by indicating that, “Strategic management is a set of
managerial decisions and actions that determines the long-term performance of a corporation. It
involves environmental scanning (both external and internal), strategy formulation (strategic or
long range  planning), strategy implementation, and evaluation and control”.
 
These two definitions place more emphasis on the analysis and evaluation of the external
opportunities and threats and the internal strengths and weaknesses within which the
organization exists. On the other hand, according to David (1997), strategic management is the
art and science of formulating, implementing and evaluating cross- functional decisions that
enable an organization to achieve its objectives. Pearce and Robinson (2002) noted that strategic
management involves the planning, directing, organizing and controlling of strategic related
decisions and actions of the  business. Despite the numerous definitions of strategic management
provided by different authors, Joyce (2015) holds the view that, there is no widely accepted
definition of strategic management, but he noted that according to Green (1998), authors would
agree that strategic management embraces some excellence, vision, core competencies, learning,
empowerment, transformation and sustainable competitive advantage. However, based on the
above presented definitions, it can be seen that the concept of strategic management involves
formulation of goals and implementation processes that are geared towards achieving
organizational goals and objectives and it is a function within the public sector that is carried out
at the top level of the organization with the implementation and evaluation processes  being
carried out at functional level. As such, strategic management is essential as it provides short and
long term a sense of direction for organizations relative to their internal and external
environments, which could be changing rapidly (Poister and Strieb, 1999).
The Importance of Strategic Management in the Public Sector
 An organization without a clearly defined direction and purpose encounters difficulties in
achieving its goals and objectives, as such strategic management is of significant importance in
the public sector as it helps shape the direction each public entity intends to take.
 
An old adage indicates that, "If you do not know where you are going then any road will take
you there
”.
Jones (1981) supports this idea by indicating that,
 strategic management has become one of the most  prominent areas of management, as it
consists of comprehensive collection of management actions which supports company managers
to keep the organization consistent with the environment and shows the correct path of
development. Steiner (1979) adds that, strategic management provides guidance, direction and
boundaries for operational management. Thus, strategic management helps determine the general
direction an organization intends to take towards achieving its goals and objectives.
Communication is a life-blood of any organization, and for every activity to be effectively
carried out communication is at the center stage. Fred (2011) indicates that, strategic
management plays an important role within the public sector as it enhances the communication
and the interaction  between managers and employees. This implies that, through improved
communication which comes as a result of strategic management, all employees within the
organization (managers and subordinates) better understand the mission and the purpose of the
organization. That is, they  become aware of what the organization intends to do, how it intends
to do it and how they can contribute and commit towards the attainment of its goals and
objectives. Thus, Zafar et al. (2013,  p.23) caution that, In the absence of information and clear
communication, rumors start flying, and  people at the functional strategy level start assuming
the worst and this leads to a serious mistrust and confusion among the team members and affect
their efficiency in solving the problems. Therefore, through enhanced communication and
participation, managers and employees can support the organization to successful strategic
management (Athapaththu, 2016). Moreover, an organization with a well-defined framework for
coordinating and controlling its activities significantly improves its chances of meeting its goals
and objectives. As a result, Fred (2011) articulates that, strategic management serves as a
platform that organizations use to develop a framework that coordinates, controls and influences
the direction of the organizations activities towards achieving its strategic goals.
Braduţan and Sârbu (N.D)
also add that, through the framework provided by strategic management, there is consistency in
strategic decision making and better coordination between all operational and tactical units
within the organization. Strategic management is essential within the public sector as it helps in
managing organizations due to its ability to connect all the activities in the organization so that
there is unity of purpose
(David, 1997). David further notes that, the connectivity of activities arises because strategic
management directs efforts to the core competencies of the organization. All activities will
therefore, revolve around what the organization is expected to achieve and the values it stands
for. Jones (1981) further maintains that, the activities undertaken in the strategic management
process
ensure unity of action and efficiency in the organization’s performance.
Thus,
“S
trategic management can be viewed as broad and future oriented as it has multifunctional
consequences to the organization
”(
Kemboi, 2011, p.5).
“If you fail to plan, then you plan to fail” says an old adage. Proactive, sufficient and adequate
organizational planning is at the heart of every organization success and one strong argument for
strategic management is that, it serves as a basis for organizational planning, as it requires an
organization to develop a long term blueprint of where it intends to go. Kemboi (2011) supports
this idea by maintaining that, indeed strategic management is a planning tool which indicates
what to be done, who is to do what, what time and what resources are required towards achieving
the organizational goals and objectives. Athapaththu (2016) adds that, strategic management
within the public sector functions as a road map which gives directions to an organization from
now, where to go or where it should be in five or ten years. In Addition, embedded in strategic
management is the concept of Strengths, Weaknesses, Opportunities and Threats (SWOT)
Analysis which helps public sector organizations to  proactively search for opportunities to do
new things or to do existing things in new or better ways (Joyce, 2015). Eadie (2000) suggests
that the purpose of strategic management is to maintain a favourable balance between the
organization and its environment over a long period. It is also about thinking the best alternative
in getting solution to a certain problem under a given circumstance.
 
“
The strategic-management process provides a basis for identifying and
rationalizing the need for change to all managers and employees of a firm; it helps them view
change as an opportunity rather than as a threat
”
 (Fred, 2011, p.50). Furthermore, by applying  principles of SWOT analysis in the public sector,
public sector organizations will be in a better  position to plan on how to take on the
opportunities that have been identified (for example, new donor grants) and how to address
current and new threats facing the public sector (for example, climate change). In order to take
on the identified opportunities and address identified threats  public sector organizations utilize
their internal strengths (for example, natural resources) and improve on their weaknesses (for
example lack of specialized skills). Furthermore, strategic management helps identify
organizational goals and ensure the optimum allocation and utilization of resources (Kemboi,
2011). The role of strategic management in
organizations’ resource allocation is well explained by
Rowe (1994), as he explains that, for every organization to achieve its goals and objectives,
resources such as land, finances, information and  personnel need to be well managed and only
the appropriate application of strategic management makes it possible. As such, resource analysis
helps determine whether attaining the organization mission is realistic given the available
resources. For instance, allocation of resources is beneficial in the public sector organizations
where resources are generally scarce, thus requiring effective and efficient and economical
management. Also, embedded in the process of strategic management are the processes of
monitoring and evaluation, which play a significant role in ensuring that resources are effectively
allocated and put to the intended use. On the other hand, monitoring helps ensures that mistakes
are promptly corrected to avoid waste of time and money that would occur when correcting
errors noticed long after they were done (Kemboi, 2011). Moreover, strategic management is
crucial in the public sector as it helps employees better understand their roles and responsibilities
(Fred, 2011). Through the process of implementation,
strategic management tends to indicate the roles and responsibilities of each employee and how
they are to be carried out. This makes it easy for each employee to appreciate and understand his
or her value towards the overall objectives of the organization and this has a potential to keep
employees motivated. Kemboi (2011, p.3-4) adds that, The a
 pplication of strategic management in organizations’ activities ensures
 participation of stakeholders in decision making process. The collective  participation improves
the quality of decisions because many alternatives are obtained before choosing the most
appropriate ones. It also creates a sense of  belonging among staff which boosts morale and
overall performance of the organization. For instance, one of the issues commonly apparent in
the civil service of Lesotho is low morale among the civil servants and this leads to poor service
delivery. By involving all stakeholders in decision making process, the civil servants will have a
better understanding of how each of their individual roles fits into the overall well-being of the
country and the economy. This has the  potential of making employees more committed and
motivated and therefore, leading to improved service delivery.
The Application of Strategic Management in the Public Sector
“
Strategic management has gained a sustained prominence in the management of public services
in the past two decades or so, as such, public organizations are increasingly being asked to use it
as part of their management techniques
”
 (Sulle, 2009, p.1). In the case of Lesotho, Strategic management has become an eye-catching
management tool for reformers and it is perceived as a government-wide reform initiative in
running the public sector. On the other hand, Berry, (2001) argues that, even though strategic
management is now widely accepted and recognized, there are still skeptical
 – 
minded people who see strategic management as unfit for the public sector management. One of
the common dilemmas facing public sector in Lesotho is the issue of scarce resources which
often leads to a situation whereby different ministries or activities compete with each other for
scarce resources.
 
Resource allocation takes place at the second level of strategic management  process, which is
strategy implementation. At this level, organizations establish annual objectives and allocate
resources so that formulated strategies can be executed (Kemboi, 2011). Therefore, through the
use and application of strategic management in the public sector, resource allocation  becomes
easier and more effective, leading to resources being effectively allocated to the priority areas of
the government (Sulle, 2009). Joyce (2015) supports this idea by maintaining that, most  public
organizations are likely to adopt strategic management in the public sector to assist managers to
contain their budgets and maintain funding for the government’s highest priority areas. For
instance, budget is one of strategic management tools that the public sector uses to distribute
resources to different ministries of government on annual basis. Furthermore, In the Lesotho
budget speech of 2016/2017, the Minister of Finance Dr. Majoro, revealed that, strategic
management is now a compulsory activity for public organization because the treasury will have
the problem of releasing annual budgets to public organizations that do not have strategic
planning.
 
Sulle (2009) also suggests that, strategic management is not a choice for ministries and agencies
but a compulsory exercise imposed on them by the government in order to support and
contribute to the broader national development goals such as Lesotho Vision 2020 and Lesotho
Millennium Development Goals. MacMillan and Tampoe (2001) state that, an organization
without a strategy appears to be directionless and incompetent. Through this line of reasoning, it
can be established that the application of strategic management in the public sector, indicates
long-term direction and then translate that direction into specific goals, objectives, and actions
(Poister and Streib 1999). This implies that, it is through the application of strategic management
that public sector organizations have a sense of direction. For instance, all governmental
ministries in Lesotho apply strategic management to develop their mission, purpose and define
what they should be doing. Therefore, without proper application of strategic management the
future of the public sector organizations appears vague. Furthermore, to improve performance of
civil servants which can lead to quality service delivery, the application of strategic management
advocates for adoption of the Balanced Scorecard  performance management system as a
strategic control measurement for employee performance in the public sector (Reddy, 2016).
This implies that, through the application of Balanced Scorecard, public sector organizations
benefit from both financial and non-financial information  provided by Balanced Scorecard. This
information will highlight areas of improvement that has  potential to lead to improved service
delivery.
Challenges Encountered by Strategic Management in the Public Sector
 In an effort to meet their missions, public organizations often face a myriad of challenges that
threaten the fulfillment of their mission, or implementing successful strategies in accordance
with their mission (Leskaj, 2017). This is mainly because strategic management is basically a
new management instrument imported to the public sector (Sulle, 2009). Lundqvist (2014) notes
that,  people often use the term strategy in the public sector, but no one really knows what
strategy means. Hence, there is confusion about the meaning, function, role and definition of
strategic management. This implies that, employees within the public sector do not see how their
actions contribute towards the overall direction of the organization and this has a potential of low
commitment and morale leading to poor service delivery and ineffective implementation of
strategic management. Strategic planning is an action-oriented type of planning that is useful
only if it is carefully linked to implementation and this is often where the process breaks down
(Poister and Streib, 2005). Public managers may fail to link their strategic planning efforts to
other critical decision making  processes (Leskaj, 2017).Poister and Streib (2005) argue that
organizational decision makers do not fully integrate the strategic plan across the entire
organization to facilitate plan implementation. In other words, public sector organizations create
strategic plans, but fail to use the strategic plan document to implement strategic initiatives and
this leads to failure in effectively carrying out strategic management initiatives. Hughes (2003)
acknowledges that there are more problems and constraints in the public sector as compared to
the private sector when it comes to successful implementation of strategic management and these
problems emanate from separation of powers between the three branches of government
(Legislature, Executive and Judiciary). Political leadership in the public sector is responsible for
strategy formation (in the form of policies and strategic priorities) and an executive leadership is
responsible for managing the implementation process of these policies. This division of
accountability is prone to conflict and repudiation of responsibility hence it becomes difficult to
successfully implement strategic management in the public sector than in the private sector
(Poister and Streib, 1999). Strategic management can hardly exist without leadership. MacMillan
and Tampoe (2001) support this idea by maintaining that, organizations that are leaderless or
inadequately led have difficulty in defining clear strategies even if they continue to function in
their day to day activities. In the case of Lesotho, current public sector leadership is made up
four political parties which entered into a coalition agreement. This form of leadership presents a
major challenge for formulation and implementation of strategic management initiatives as there
are differing political party mandates, which therefore lead to conflicting interests. Moreover,
change in public sector leadership leads to change in strategies of which frustrates the current
ongoing progress on the implementation of strategic management initiatives. For Lesotho, this
situation is worsened by frequent change in government leadership as it has become apparent
that no coalition government stays in power for more than three years as opposed to the expected
five years. Among other challenges facing the public sector towards achieving set out strategic
management goals is the scarcity of resources. Kemboi (2011) states that, public sector
organizations are faced with challenges when allocating the limited resources to projects and
activities marked for implementation in a specific period, and this leads to failure in achieving
strategic management goals. For instance, ineffective utilization of scarce resources has played a
significant part on the failure to achieve some of the Millennium Development Goals in Lesotho.
To be specific, some of the government implementation initiatives geared towards eradicating
poverty in Lesotho failed due to lack of resources and this presented a major challenge for
successful implementation of strategic management goals. The effects of bureaucracy in the
implementation of strategic management in the public sector are far reaching as Kalimullah et al.
(N.D, p. 11) explain that, Strategic management in the civil service has been politically
motivated and often geared to partisan or individual interests rather than overall national
interests. Resistance against administrative reforms is generated and sustained by civil servants
who perceive their interest to be adversely affected as a result of the implementation of the
strategic management. Lack of professionalism among civil servants hampers this process. Lack
of adequate and sustained institutional support for networking is also obstacles in the way of
proper implementation. Absence of necessary disciplined and systematic approach in
government activities are the main barrier in proper implementation of strategic management in
developing countries. Merton (1957) supports this idea by maintaining that excessive
bureaucracy makes public organizations more arthritic and self-serving, less able to achieve their
core missions, and less responsive to service users. It is characterized by red tape, excessive
paper work, fear of innovation, poor customer service, duplication of working procedures, strict
adherence to  procedures, weak management practices and low morale. Thus, bureaucracy
presents a major challenge for successful implementation of strategic management.
Conclusion
In a nutshell, strategic management is a broad concept which forces organizations to plan ahead,
it helps organizations to set the direction they want to take by specifying strategic
implementation initiatives that need to be carried out. Despite the multiple benefits that come
with the application of strategic management in the public sector, strategic management still
faces a number of setbacks  before it can realize its full potential. Therefore, public sector
organizations still have a long way to go towards successfully incorporating strategic
management principles in their day to day operations, as this have huge potential towards
improving the quality of service offered
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