Strategic Management in the Public Sector: How Tools Enable and Constrain Strategy Making

ABSTRACT

Strategic management (SM) has become prominent on the agenda in several public organizations due to new public management (NPM) reforms. Nevertheless, there are few studies investigating how public organizations apply SM in practice and what tools are used. As a result, calls have been made for such studies. This article can be seen as an attempt to meet this call by presenting a qualitative case study of how SM has been applied in the Swedish Transport Administration (STA), a central government agency in Sweden, and what tools it used in strategy making. By analyzing the micro processes of strategizing at STA, our results indicate that public organizations need to be aware of at least three specific tensions that can enable or constrain strategy making. These tensions are: short v. long-term, parts v. whole, and reactivity v. proactivity.