Strategic management in public higher education focusing on strategy formulation and state budgeting

The purpose of this study was to determine the relevance of rational strategic management and strategic planning approaches, drawn from the business sector, to executives in public higher educational institutions which are funded substantially by governments and which in turn are responsive to political influences. The four research questions formulated dealt with (1) the relevance of key concepts of strategic management from the business literature; (2) the adoption of strategy models by senior executives; (3) the contribution of the CEO to strategy development; and (4) linkages between strategy processes at institutional level and budgeting processes for state funds. A qualitative case study methodology was adopted for the study. Five institutions in the three sectors of public postsecondary education in the State of Nebraska were selected, complemented by the three system offices for each sector, and five central state bodies. Data were collected from interviews with sixty nine individuals occupying senior or key positions in the above listed institutions or bodies. Data were also gathered for an analysis of documents and by researcher observation. Limited parallels were found between issues addressed at three strategy levels in business and public postsecondary education. The closest parallels were at institutional or business level in respect of strategies relating to positioning, increasing scope, and differentiation. Findings also indicated that the strategy models need not be used as discrete and mutually exclusive, but rather a contingency or situational approach should be followed. The management philosophy and style of chief executive officers were found to have a great impact upon strategy development processes at institutional level. CEOs therefore need to think through their management philosophy and values and how these relate to strategies utilized. Political considerations were found to be quite influential upon decisions made concerning state funding for public postsecondary institutions