Management Accounting in Public Service Decision Making

Chapter3

The importance of strategy in public services

Introduction

It is sometimes said that strategy is one of the mis-used words in the English language and that strategy often means different things to different people. A couple of quotations illustrate this view:

• “Nobody really knows what strategy is” (Economist 1993).

• “Nobody really knows what a strategy is or how to develop a good one” (Costas Markides, Professor London Business School).

Nevertheless, the reality is that having an effective strategy is a necessary (but not sufficient) requirement for success in any organisation, be it private or public sector. This is especially the case in an environment of financial austerity where there is a need for an enhanced strategic focus. ...