Ulf Ramberg

Do Strategy and Management Matter in Municipal Organisations

In Sweden, a large share of public services are organised, produced and delivered by municipalities, large and small, rich and poor. Contextual conditions (size and location) and economic conditions (efficiency and wealth) differ considerably among these service-providing organisations. The question raised in this paper is whether a municipalitys economic situation is a direct consequence of the contextual situation or the organisations strategy and management - that is: Do strategy and management matter? Our analysis rests on a resource-based view of organisation strategy. Both quantitative and qualitative observations have been made. First, cost savings data from 50 municipalities were examined for patterns and relationships between contextual and economic conditions. Second, about 100 representatives - municipal executive board members and leading officials - from 20 municipalities with different characteristics were interviewed. In this paper we outline an analytical framework and propose that sound and sustainable provision of municipal service depends on whether organisational decision-making is in harmony with work methods and objectives. The results indicate that strategy and management do matter. Among the municipalities included in our study, we identify four prevalent basic strategies. Strategy tends to coincide with the economic situation rather than the contextual situation. A low-performing municipality tends to have a predominantly outward orientation in its decision-making, whereas a higher-performing municipality makes decisions with both inward and outward orientation.

Through a Glass Darkly: Leadership Complexity in Swedish Local Government

Abstract New management ideas aim to change the roles of local government politicians and administrators. The new ideas are poorly adjusted to the traditional role of councillors that was built on detailed knowledge and active participation in administrative practice. Leadership has now become even more full of contradictions; many demands are hard to reconcile. But, if any managers are good at handling complexity, it should be those in the local government sector. This article discusses, based on experiences from Sweden, how the complex interface between politics and administration is, or could be, handled by a dialogue between central actors.

Co-Owned Local Government Organisations: Conditions for Strategy Development

Local governments tend to join resources and create co-owned organisations to solve the supply of public services. From a strategic perspective on local government cooperation, this paper analyses the conditions for strategy development in a co-owned municipal organisation. The empirical data stem from a longitudinal case study of a Swedish provider of water and sewerage services. We show that difficulties in formulating and agreeing upon strategies are not dependent on the structural form. Instead, there is an intrinsic dilemma when municipalities are to create a joint strategy at the same time as each municipality is sovereign to decide on all local matters.

Transformational change and the vacuum of performance measurement: How a story of success became a failure

Some local government organisations stand out in terms of their capability to adopt and use management accounting innovations and become a model for those struggling with issues such as performance measurement. But what happens to the innovations if the organisation is forced into transformational change? This longitudinal case study is based on the theory that the use and impact of performance measurement is influenced by (a) its contractibility and (b) how the performance management systems in place are configured and used. One conclusion is that transformational change can result in a vacuum of performance measurement, even with a high degree of contractibility.

Modernizing the public sector: The Scandinavian way

This chapter gives an overview of the main NPM reforms and trends in the Nordic countries. The idea of a uniform Scandinavian model of NPM is discussed – the chapter presents the different countries as members of a shared public administration tradition, albeit with different traits and particular reforms. The Swedish constitution and the organization of the public sector in a centralized and a two-part local government structure are presented, both as a backdrop to the subsequent chapters and for a reflection about whether there is a uniqueness to be found in the Swedish NPM initiatives. The long history of decentralized public decision-making and its ramifications on the structure of the Swedish public-sector organization is given special attention. From a Scandinavian perspective, the public-sector structures and characteristics in Norway, Denmark and Finland are presented, by which the idea of a single Scandinavian model for all is discussed and contested. (Less)Looking at the Swedish public sector from a Scandinavian perspective, this chapter argues for a challenged but resilient (although not uniform) Scandi- navian public sector. Sweden is a nation with a long tradition of decentral- ized decision-making, semi-autonomous government agencies and independent local governments. This is considered a receptive context for continuous and incremental modernization. It has fostered a high degree of experimentation in terms of modes of production and distribution, albeit without the risks associated with purely market-driven social reforms based on privatization of both production and financing. The variations on the Swedish modernization theme are many, involving various forms of mar- ketization initiatives, boundary-spanning cooperative efforts and an open attitude and willingness towards trying and sharing experiences. High levels of transparency and trust are two initial traits signifying the Scandinavian public sector, which have been both amplified and challenged by the NPM agenda. The inherent strive of NPM for compartmentalization, quantifica- tion and performance measurement challenges some of the institutional glue of the welfare state, which has kept the parts together in a solid unity. Simultaneously, many NPM reforms – with their emphasis on performance measurement and reporting for increasing transparency and improving the outcomes of public polices and services – contribute both to sustained trust and welfare. The chapter concludes that Sweden keeps defending the Scan- dinavian model and values of universalism, solidarity and market independ- ence, a defence in which developments in society and future public management reforms may prove wanting. (Less)