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Creating Public Value: The Core Idea of Strategic Management in Government

Mark Harrrison Moore

Abstract e-ISSN: 2525-3654

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Professor Mark Harrrison Moore
Harvard University, Cambridge, United States. Password

The core idea is a simple one: public managers should be focused on “creating public value” from the assets entrusted to them Remember me
by the public. Those assets include public money, raised through the power of taxation, to provide for the public welfare. But they Login
also often include the authority of the state to regulate the conduct of private actors either to prevent them from doing harm to
the public welfare, or to require them to make contributions to the overall public good. It may also include their ability to kindle
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or take advantage of some pre-existing “public spirit”: -- the desires of citizens to contribute to important public purposes, or at
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least to do their duty or contribute their fair share to common e orts. To create public value, we need public managers with
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“restless, value-seeking imaginations” looking for opportunities to do so, guring out how those opportunities might be
exploited, and then doing so. This is an entrepreneurial style of management that is possible in the public sector only if one fully
understands and acts in accord with the important processes of democratic legitimation and public accountability. Resultado de imagem para
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To both guide and discipline value creating management in government, a simple strategic concept is taught and applied: the JOURNAL CONTENT
strategic triangle. The strategic triangle is supposed to do for public sector executives what the various strategy models Search
developed in the private sector do for private sector executives: namely, help them position the enterprises that they lead in
environments that are both highly dynamic (they change often), and very heterogeneous (they consist of many di erent
expectations, and many unique and di erent operational challenges). The main purposes of the strategic triangle are to help Search Scope
executives both diagnose their environments to spot the opportunities for creating value (either by avoiding a harm or All
advancing a good), and to design and test in their minds particular actions they can imagine taking that would exploit the
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opportunity. In this sense, it is an opportunity spotting and planning tool. It can also be converted into a tool for monitoring
progress as one goes along, and adapting as circumstances change.
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The core idea behind the strategic triangle is that to nd and exploit value creating opportunities in the public sector, public » By Issue
managers have to nd a t among three di erent considerations that form the points of the triangle: » By Author
» By Title
First, they have to develop a test a more or less speci c conception of the public value to be pursued through their individual
e orts (usually launched from a particular position in government). This is an abstract philosophical idea of the good or the just
brought into a particular concrete situation and turned into a speci c idea of what it would mean for conditions in the particular METRICS
part of the world for which one is responsible to be “improved.” What is it, exactly, that constitutes “progress” or “improvement”
or “greater e ciency and e ectiveness” or “increased value”? What is the point of the managerial e ort one is about to make?
What is the public value proposition that animates action? How could one tell whether one was making progress or not?

Second, there has to be a concrete base of social legitimacy, public support, and public nancing to produce the desired result.
This is practically important: for without public support for a given purpose -- without a sustained ow of authority and money
to a public agency for a particular purpose -- the enterprise cannot even survive, let alone achieve its desired result. It is also
normatively or ethically important: without public support for a given purpose, a public manager cannot be sure that they are
pursuing the right goals. Public legitimacy and support for a given cause is as important to public managers as capital nancing
and consumer purchases are to private sector rms. Without them, the public enterprise can neither practically succeed, nor be
con dent that it is doing something that is, in fact, publicly valuable. Social Media
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Third, the manager has to have, or be able to develop, the operational capacity required to deliver the desired results. Without
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the practical means of delivering on the promises made to create public value, the exercise of pursuing it will be futile and
wasteful. Importantly, the operational capacity could already exist – in which case, the risks and costs may be low. But in many
cases, the investment costs and the risks become greater because there has to be innovation, experimentation and ABOUT THE AUTHOR
development as well as routine operations. It is also true that the operational capacity to achieve the desired results can lie Mark Harrrison Moore
wholly within a single agency that one happens to lead. But it is far more likely that the operational capacity one needs to rely on https://www.hks.harvard.edu/faculty/
lies outside the boundaries of one’s own organization. To the extent that is true, the e ective development of the operational moore
capacity one needs requires one to operate across the boundaries of organizations, and often even levels of government, and
across the private-public boundary. Harvard University, Cambridge,
United States
Mark H. Moore is Hauser
Professor of Non-Pro t
Keywords Organizations in the John F.
Kennedy School of Government at
Public managers; Creating Public Value; Strategic Management in Government; Strategic triangle; Public Management Harvard University and Simon
Professor of Organizations,
Management, and Education in
References Harvard’s Graduate School of
Education. He is author of
Creating Public Value: Strategic
Moore, Mark H. (1995), Creating Public Value: Strategic Management in Government, Cambridge, MA. Management in Government
(Harvard University Press, 1995)
Moore, Mark H. (2003), The public value scorecard: a rejoinder and an alternative to ‘strategic performance measurement and and Recognizing Public Value
management in non-pro t organizations’ by Robert Kaplan. Hauser Center for Nonpro t Organizations Working Paper no. 18 (Harvard University Press, 2013).

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DOI: http://dx.doi.org/10.26668/businessreview/2021.v6i1.219
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