Why Is Strategic Management Important in the Public Sector?

1-2 minutes

In this blog, you will learn:

  • What strategic management in the public sector is.
  • The key stages of strategic management in the public sector.
  • Why strategic management in the public sector is important.
  • Where the latest interim jobs are and how to apply for them.


Successful strategic management is essential for helping local authorities and public sector organisations improve their services and enhance their decision-making processes. Whether it’s to enhance accountability or ensure the effective use of resources and funding, strategic management plays a key role within local authority.

In our latest blog, we’re uncovering what strategic management is and why it is important within the public sector.


What is strategic management in the public sector?

Within the public sector, strategic management refers to the structured process in which a public sector organisation or local authority will outline its long term goals and methods in which to achieve these goals. To be successful, strategic management must focus on 3 key areas - planning, implementation and measurement. 

Allocating resources is a crucial part of strategic management and allows public sector organisations to define how resources should be utilised to achieve company goals. 

By implementing effective strategic management, local authorities are able to improve their day-to-day operations, enhance decision making to ensure positive outcomes and highlight any areas for improvement. 

Should a public sector organisation have certain targets to meet, strategic management may come into play in the form of realigning financial budget or team resources, or making changes to leadership. 

Within the public sector, strategic management encompasses creating public value, achieving transparency and ensuring accountability. 


What are the key stages of strategic management in the public sector?

Successful strategic management should consist of:

  • Setting short and long term realistic goals.
  • Collating data and analysing the needs of an organisation to achieve these goals. 
  • Developing a strategy to determine how goals will be met and what funding and resources will be needed.
  • Implementing said strategy whilst highlighting the role employees will play in meeting goals.
  • Evaluating the success and efficiency of the strategy. 


Why is strategic management in the public sector important?

There are number of reasons as to why strategic management is important in the public sector, including:

  • To ensure limited resources are not wasted.
  • To make change a smooth process.
  • To increase accountability.
  • To improve service delivery.
  • To identify and implement realistic goals. 


To ensure limited resources are not wasted

To ensure that already limited resources within local authority and the public sector are used effectively, strategic management is required. Cost-effectiveness is crucial for local authorities who are currently experiencing budget constraints and without strategic management, they are at risk of wasting finite budgets and not achieving their desired outcomes. 

Strategic management allows local authorities to align their goals with the needs of their local community and create an effective plan for fund allocation. Data-driven decisions are essential for ensuring that funds and resources are allocated correctly and through strategic planning, councils are able to identify areas of need, such as the requirement for affordable housing. 

Monitoring and evaluating performance is also an essential component of strategic management and should a project not meet the desired goals, a local authority is able to make effective decisions on the allocation of future funds and resources. 


To make change a smooth process

An important role of strategic management within the public sector is to ensure that any changes that take place are done so in a smooth manner that does not cause disruption to operations. This is especially important when goal setting.

A structured plan, effective communication, clearly defined goals and managed expectations all increase the chance of a successful transition. 

Within a local authority, change can sometimes be met with resistance or uncertainty and strategic management is crucial for guiding staff through periods of uncertainty. 

Interim recruitment specialist, John Shorrock, says “Whether it’s the introduction of a new system, changes within policy or an economic uncertainty, a public sector organisation which utilises strategic management will be able to navigate the change and meet their goals whilst maintaining standards and reducing disruption.”


To increase accountability

Accountability within the public sector is of utmost importance to ensure that local authorities are acting lawfully and adhering to necessary regulations. 

Strategic management ensures transparent reporting, definitive goals and alignment with public priorities.

Decisions made and goals set within the public sector should be made based on substantial evidence. Ensuring accountability allows local authorities to monitor who is responsible for decision-making and whether the decisions made are meeting their desired outcomes.

A local authority may be working towards the reduction of homelessness and strategic management will allow them to define their goals and provide oversight on accountability within a project. Should public funds be used unethically or irresponsibly, strategic management and the publication of progress reports ensures that those responsible are held accountable. 


To improve service delivery

Clear, measurable targets are crucial within the public sector to indicate that a local authority is performing as it should be. 

Smooth service delivery is one such component of a local authority being deemed up to scratch and strategic management and effective planning are essential for improving this.

Strategic management allows public sector organisations to identify gaps in their service and set goals to ensure that a local community's needs are being met.

The better the service delivery of a local authority, the greater the outcomes for local residents and the greater job satisfaction for professionals within the public sector. 


To identify and implement realistic goals

Identifying areas of need and setting realistic goals to fill gaps is important for local authorities up and down the UK. Whether they have to realign resources or make changes within their team, strategic management helps local authorities to execute their plan and achieve their short and long term goals. 

Goals must be realistic and align with the needs of a local community. Vague goals should be avoided and setting specific, quantifiable targets gives a local authority measurable results which can be used to improve services and create a brighter future for all. 


Interim jobs

If you’re searching for your next interim job, why not take a look at the latest vacancies, or simply upload your CV to be notified when a relevant position becomes available. 


Interim recruitment services

As interim recruitment specialists, we support local authorities nationwide with their temporary and interim recruitment needs. 

We operate across a number of specialisms including Health & Social Care, Nursing, IT and Corporate Functions

If you’re struggling to fill a vacancy, why not get in touch with Lead Consultant, John Shorrock on 01772 954200 to see how we can help?


Who is Spencer Clarke Group?

Established in 2017, we’re an award winning and progressive recruitment agency based in the heart of the North West. Our reputation is built on trust, expertise and an unwavering commitment to exceed expectations. 

In 2024, we were named Recruitment Agency of the Year at the prestigious Recruiter Awards, an accolade we are extremely proud of. 

We operate in two sectors:

Private Sector

Public Sector 

In eleven specialisms:

Accountancy & Finance

Education & SEND

Construction, Trades & Labour

Healthcare, Social Care & Nursing

Housing

Corporate Functions & Business Support

HR & Workforce Development

IT & Digital

Property & Asset Management  

Planning, Development & Regeneration 

Highways, Infrastructure & Engineering