Mark H. Moore
October, 2012
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Concepts Developed for Government Managers
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Controlled and Deployed Collectively Owned
Assets of State:
◦ Tax Dollars
◦ State Authority
◦ “Public Spirt”
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Accountable to “Public” For Effective, Value
Creating Use
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Elected Representatives
Courts
Court of Public Opinion (Interest Groups, Media)
Citizens, Taxpayers, Customers/Clients
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Created at Time When Private Management
Concepts Were Migrating to Public Sector
◦ Customer Oriented Government
◦ Performance Metrics
◦ Pay for Performance
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Big Concept from Private Sector Did Not Move:
The Idea of Corporate Strategy
◦ Managers Responsible for Positioning Organizations in
Complex, Dynamic Environments
◦ Discretion Over Ends as Well as Means
◦ Innovativeness and Learning Key to Success
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Conventional Meanings of “Strategic”
◦ Long Run Rather than Short Run
◦ Ends Rather than Means
◦ Big Rather than Small
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Meaning of Strategic at HBS:
◦ Fitted to Environment
◦ Path From Present to Future
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Environment of Private Manager:
◦ Customers (Individuals with Desires, Money)
◦ Competitors
◦ Shareholders and Other Investors
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Environment of Government Manager
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Elected Representatives of People
Citizens and Their Aspirations
Clients of Government Organizations
Social Conditions to be Ameliorated
Partners and Collaborators in Producing Social Results
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The Market: Private
Desires and Individual
Consumption
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The Polity: Public
Aspirations and Social
Conditions
◦ Customers with
Desires and Money
◦ Clients with Needs
and Rights
◦ Investors
◦ Citizens/Taxpayers
◦ Competitors
◦ Partners
Private Environment
Public Environment
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The Authorizing Environment
◦ Simple v. Complex
◦ Stable v. Dynamic
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The Task Environment
◦ Simple v. Complex
◦ Stable v. Dynamic
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How Cope?
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The Strategic Triangle : A Framework for
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The Authorizing Environment:Sources of
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The Task Environment: Social Conditions to Be
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The Public Value Chain: Building Operational
Positioning Public Enterprises in Complex
Environments
Legitimacy and Support for a Public Enterprise
Ameliorated by Public Action
Capacity to Deliver Desired Results
Legitimacy
& Support
Public
Value
Operational
Capabilities
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Analytic Concept Serving a Function Similar
to that Served by Porter’s “Five Forces,” or
McKinsey’s “Six Circles” in the Private Sector
Namely, to Help Managers Find a “Fit”
Between the Environment they Face, and the
Enterprise they Lead.
Need to Simplify for the Public Sector, so
Got it Down to Three Circles!
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To help public managers position their
enterprises in complex, dynamic
environments
To focus and distribute managerial attention
across their “Task Environment” and their
“Authorizing Environment”
To help them envision a sustainable Public
Value proposition to be pursued
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Social Conditions to be Ameliorated
Substantive Problems to Be Solved
Wants to Be Satisfied
Needs to be Met
Rights to Be Vindicated
Opportunities to be Exploited
Legitimacy
& Support
Task
Environment
Public
(Social
Value
conditions
Operational
Capabilities
to be
Ameliorated)
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To Create Public Value is the point of all managerial activity
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Public Value is created when managers transform social
conditions in collectively desired directions
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The “Task Environment” consists of the particular social
conditions public managers seek to change
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Demonstrations of Public Value creation lie in evidence
showing changes in social conditions
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Problem: Not everyone sees Public Value in the same way
Definition:
Actors from whom manager formally needs
authorization and resources to survive and be
effective
Or, those other actors who can influence the
formal actors
Central
Agencies
Prime Minister/Premier
Courts
Minister
Elected
Legislature
Dept Head
Interest Groups
Public Manager
Media
Citizens
Staff
Taxpayers
Clients
Legitimacy
& Support
Authorizing
Environment
Operational
Capabilities
Public
Value
Assets and Capabilities Entrusted to
Manager
(Plus Those Required to Achieve the
Desired Results That Manager Can
Influence)
Process by Which Fungible Assets
Like Money, Labor, Ideas, etc. Are
Deployed to Produce Particular
Results
Organization
Inputs
Activities
Processes
Procedures
Programs
Outputs
Partners and Co-Producers
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Legitimacy
& Support
Public
Value
Operational
Capabilities
Legitimacy
& Support
Public
Value
Operational
Capabilities
Touch all three bases!
Applying to Our Situation
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Useful to Start with Operational Capacity
Sitting in the Room
Representatives of Many Different Arts
Organizations, Their Sponsors and
Authorizers, Their Suppliers
Each Organization has its Own Strategic
Triangle
But Together You are an “Organizational
Field,” or an “Industry,” or a “Community,” or
an “Association,” or Perhaps a “Movement”
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To Some Degree, You Compete with One
Another Just as Firms in the Same Industry Do
But You Also Collaborate with Respect to
Creating Space in Society for Industry as a
Whole
Mix of Competition/Collaboration May
Depend on State of Industry Development
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As Formal Organizations, You Represent the Tip of
the Iceberg of Artistic Engagement and Activity
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Natural to Think That Path of Development of
Industry as a Whole is to Build Audience
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But Individuals Participate in Art in Three Different
Capacities
◦ Audience for Arts
◦ Producers of Art
◦ Sponsors of Art
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Likely That These are Related to One Another
Likely That There are Tiers of These Relationships
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Perhaps Public Value is Being Created Not Just
at the End of the Value Chain, but all Along it
as Individuals Support, Produce, and View Art
Sponsors
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Artists
Audience
And Not Only at Peak, But In Depths
Mainstream/NonChallenging
Challenging
High Art
Symphonies
Musical Theater
Performance Art
Low Art
Karaoke
School Plays
Rap Music
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Build the Industry as a Self-Conscious
Community or as a Movement
Target: Maximize Number of Queenslanders
Engaged in Arts Activity as Sponsors, Producers
or Audiences at All Levels, Across All Sectors
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Special Target for Expansion (I): Children
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Special Target for Expansion (II): Aging Boomers
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Audience: Enjoyment, Enrichment,
Engagement
Artists: Enjoyment, Enrichment, Engagement
Sponsors: Enjoyment, Enrichment,
Engagement
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Employment Within Industry
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Multiplier Effects on Supporting Services
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Indirect Effects on Local Economy
◦ Community Attractiveness/Quality of Life
◦ Creative Class
◦ Tax Base
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Individual Voice/Agency
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The Search for Authenticity/Truthfulness
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Empathy/Curiosity/Tolerane
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Pleasurable/Meaningful Communal Events
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Social Capital
◦ Bonding
◦ Bridging
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Individuals Who Want to Be Members of the
Arts Community: Sponsors, Artists, Audience
Organizations Who Help Organize
Participation and Activities of Arts Community
Elected Officials Who See the Public Value of
an Expanded, Enriched Arts Community That
Has Deeply Engaged the Community
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The Most Important Reason to Want a Strong
Arts Community is that it Creates Citizens
Who Participate in a Strong Civic Culture
The Most Important Source of Legitimacy and
Support for the Arts Community is the
Citizens Who Create and Are Created by It
The Most Important Operational Capacity of
the Arts Community is the Desire and
Capacity of Human Beings to Create Art
How To Take an “Organizational Field”
And Turn it Into a “Community” or a
“Movement”
to Create Citizens
Sustained by the Common Desire to Be
Human