Abstract
Management issues can be divided in two large groups: governmental, with its specific aims, methods and challenges, and private sector responsible for economical results, competitiveness and state revenues. Although these sectors have so much in common in sustaining the state, striving for excellence, fulfilment of European Union 2020 strategy and for the best results, they are at the same time very different. By theory and practice, one of the greatest methods how to improve performance, is benchmarking- both looking for the best in the concrete field and in different area. In the article authors compare strategic planning and management issues in governmental and private sector, thus identifying strong and weak points of each system. Proposals are made how to improve management of both sectors, implementing ideas from the best praxis examples and success stories in other management areas. The purpose of the study is to analyse strategic planning, management and leadership in praxis of governmental and private sector thus identifying opportunities to improve other`s sectors performance. For doing this, authors have completed several tasks: analysed strategic planning, management and leadership praxis in governmental sector, analysed strategic planning, management and leadership praxis in entrepreneurial sector, compared results, conducted SWOT analyses of governmental and private sector, made conclusions and generated proposals for improving the performance of governmental and private sector. In their research authors have used several methods: information content analysis method, logically constructive analysis method, case analysis method. Key results lead to conclusions that in governmental sector there is great emphasis on strategic planning part of management process, but implementing plan to clear activities and getting right result sometimes delays or is even missed. In private sector entrepreneurs tend to look short-term thus gaining results in small every-day actions but lacking greater sight to future and therefor plundering chance of greater growth. Government should implement more client-oriented approach using best examples from entrepreneurial world. Private sector should learn how to generate concrete long-term plans, delegate duties and not to mix responsibilities in enterprise for greater results. Consolidating mentioned above, both sectors should learn from each other thus improving its competitiveness and performance for joined moving towards reaching goals of EU 2020 strategy. DOI: http://dx.doi.org/10.5755/j01.eis.0.6.1538
Highlights
Strategic planning as an organization development tool as we know it nowadays started to be outlined in mid 1950ies and for more than 30 years was mainly used in private business sector while the concept and performing culture of public administration was developing entirely on the basis of national constitutions and laws.Today, in one or another way all organizations in both, private and public sectors, are using strategic planning as a tool for performance and development
Today taking into account that strategic planning and management used in the public sector for well over two decades has become prevalent in governmental jurisdictions at the supranational, national and local levels (Bryson, 1988, Eadie, 1983; Ring, Perry, 1985) and comparing the usage of this tool in public and private sectors it is not that well decidedly who should learn from whom
Key results lead to conclusions that in public sector there is great emphasis on strategic planning part of management process, but implementing plan to clear activities and getting right result sometimes delays or is even missed
Summary
Strategic planning as an organization development tool as we know it nowadays started to be outlined in mid 1950ies and for more than 30 years was mainly used in private business sector while the concept and performing culture of public administration was developing entirely on the basis of national constitutions and laws. Purpose of the article is to compare strategic planning and management issues in public and private sector for identifying possibilities to work more efficient and gain better results in both of these sectors. Effective strategic planning is remarkably topical and still improvable process that is being recognized as good practice of management and at the same time it makes healthy competition in public administration and private business sector in Europe. Alfred Chandler published his classic business book “Strategy and Structure” in 1962 in which he argued that all successful companies must have a structure that matches their strategy rather than the other way round as many had assumed until He based his theory on an extensive study of large American corporations between the years 1850 and 1920 – corporations such as Du Pont, General Motors and Sears, Roebuck. Initially strategic planning was mainly associated with and used more in a private business sector and strong majority of authors focus on private business sector, in 1980ies public administration started to notice that strategic planning principles can be used for its development
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