ABSTRACT
In this chapter, the authors present an overview of public agency strategic analysis (PASA). They begin by stressing the importance of explicitly considering social value in the particular context of the agency. Policy analysis assesses and compares the social values that would result from the adoption of concrete policy alternatives. Achieving professional standards does contribute to social value to the extent that these standards bring competence or desirable norms to policy choice and implementation. The analysis of external forces provides the basis for not only assessing the current constraints on agency autonomy, but also predicting how they are likely to change in the future. Where agencies do purchase inputs in competitive supplier markets, an understanding and effective use of bargaining power can help ensure that the agency extracts the best price from suppliers. Systematic consideration of the external economic and political environment is a key component of almost all kinds of strategic analysis.
