TOPIC 2.7: What is Strategic and Political Acumen?

Beyond the significance of each institution’s varying remit, powers, structure and resource constraints, leadership and effective management were found to be crucial factors, alongside the political acumen necessary to steer the ship through turbulent times. The institutions may take some comfort from the fact that it is those factors, which are those most within their control.

Managers in the public sector are not legitimated to act as politicians: They do not have the authority of the ballot box. But, they may often need to act with political awareness – that is with sensitivity to the diverse interests which are served by particular actions and decisions. … that, is because leaders may need to work with a range of stakeholders who may have diverse interests, values and goals and who may sometimes collaborate but at other times compete. (p542)

The pervasiveness of politics means that dealing with these challenges puts a premium on political astuteness (also called political ‘savvy’ or ‘nous’ or having political antennae). Managers need to be able to understand their context (at both a micro- and a macro-level), ‘read’ other people’s behaviour, and understand the dynamics of power and, frame decisions and strategies that take these political factors into account. But, surprisingly, political astuteness, until recently, has attracted only modest attention in the management literature. (p7)

Case Study: Political Nous – You know it when you don’t see it.

When Nigel heard the news about the Gazetting of the parcel of land on the outskirts of the city in order to build a large area hospital, he rang his friend Des C. Des lived across the creek from the site and Nigel wanted to pass on the news because he had mentioned the prospect of it at a barbeque some time previously when he felt it necessary to attempt to impress some of Dan’s guests with his commercial acumen. Upon hearing the result Des was ecstatic over the telephone and Nigel was most impressed that his friend got so much delight from someone else’s success.

He put down the handset and virtually ran to chair a meeting, only to find he was the last person there and had not remembered to bring his notes from the previous meeting. After a period of time where Nigel was trying to get people to make a decision, someone from the floor said ‘Excuse me Nigel, we are private sector business people we can’t make this decision, it is the Department’s to make.’ and Nigel’s embarrassed team mates looked at their desk. Nigel’s face went red and he said, “I’ve put you together as an advisory committee and that’s what I want you to do – advise!”  The stakeholder got up and left the room with another rising to join him.

Meeting concluded, Nigel returned to a telephone message requesting that he contact the CEO immediately. “The Minister had specifically asked for the land to have a small park area sliced off it and it is not on the plan. What has happened?” said his boss.

“Oh shivers we forgot. I was so busy getting the Ostraker’s lease approved: Which, in the end, wasn’t approved.”

“Well you know why it didn’t go through? That company has been a long-term supporter of the Mayor’s Charity Day and the Mayor is not going to do anything against their interests unless the stakes are a lot higher and the benefit more realizable. You should have raised it with me the minute they started complaining.”

“Yes, and speaking about complaining” continued the CEO, “the opposition has complained that someone has bought up all the land facing the site, and they are accusing the Minister of a leak from the Land Planning Authority and possible corruption.” On examination, Nigel discovers his friend Dan’s town planning company has purchased the land, with a view to establishing a convenience shopping and health speciality centre.