Political challenges in adopting commercial strategic management models in the public sector

Level: Undergraduate | Grade: 2.1 | Approx. Word Count: 2,350

Political challenges in adopting commercial strategic management models in the public sector image

Click image to view 1st page of PDF

Overview

There has been a signficant increase in public/private partnering project in recent years. However, the success of many of these projects have been hampered by a lack of harmonisation between the strategic management approach adopted by the two parties. The aim of this essay is to assess the challenges public organisations faced in adopting commercial strategy models.

It has been argued that critical to the success of public/private projects (PPPs) is the need for harmonisation of the management models that are adopted by the two organisations (Diamond and Liddle 2005). However, although efforts have been made by governments to achieve this objective, evidence indicates that  compatibility in this area of the project still remains an issue for many public/private partnerships. Recent debate regarding this particular problem has been focused on establishing whether it is possible to transfer commercial management strategy models to the public sector (Walker and Boyne 2006). Following an overview of strategic management theory, it is an evaluation of this question that forms the foundation for this study.