Strategic Management in The Public Sector - The Case of The Swedish Transport Administration

Strategic Management in The Public Sector - The Case of The Swedish Transport Administration

1. PRESENTATION
A. SYAHIDA ULHAQ PASRYB
NIM. A033241017

2. THEORITICAL FRAMEWORK
STRATEGIC MANAGEMENT IN THE PUBLIC SECTOR: THE
CASE OF THE SWEDISH TRANSPORT ADMINISTRATION
Strategizing Perspective: The authors, influenced by researchers like Jarzabkowski,
argue for a micro-level focus on what people actually do when they strategize. This is
a shift from viewing strategy as an abstract plan or document to understanding it as
something enacted through actions, interactions, and negotiations between actors.
This approach helps explain how strategy work happens in practice, particularly in
complex public-sector contexts.
Strategic Management in the Public Sector: Strategic management is defined here
as an integrated process of strategy formulation, implementation, and learning. The
authors note that public-sector organizations have unique challenges due to
multiple internal and external interests. The public-sector context involves pluralistic
environments where contradictions and tensions are prominent, such as balancing
accountability with innovation or short-term political cycles with long-term
organizational goals.
Tensions in Strategy: The paper identifies four key tensions that emerge when
strategic management is applied in public-sector organizations. These tensions are:
Planned vs. Emergent Strategies: The conflict between formal strategic plans
and the reality of adapting to unforeseen circumstances.
Legitimacy vs. Practicality: Balancing the need for external legitimacy (e.g.,
political or public approval) with practical, on-the-ground functionality.
Administrative Management vs. Innovative Approach: The tension between
maintaining bureaucratic controls and fostering innovation.
Accessibility vs. Security: The push to make data and operations more
accessible while ensuring data security, especially in the context of
digitalization.

3. METHODOLOGY
The authors use a qualitative case study approach to investigate the
Swedish Transport Administration’s (STA) experience with strategic
management, particularly its digitalization strategy. The case study
methodology is justified based on the need to understand in detail
the micro-dynamics of strategic activities.
Case Selection: STA is selected due to its prominent role in
applying strategic management since its creation in 2010. The
agency’s efforts to employ a digitalization strategy make it a
suitable site for studying both traditional and emerging strategic
management practices in the public sector.
Data Collection: The study involved 67 individual interviews
across various hierarchical levels within STA, three focus group
interviews, and observations from seminars. Strategic
management documents were also analyzed. This multi-method
approach allowed the authors to triangulate data and gain a
comprehensive understanding of strategizing at STA.
Data Analysis: The analysis was performed iteratively, with both
authors reading the interview transcripts multiple times. Coding
was used to identify patterns and tensions in the strategy work.
The study culminates in the identification of four major tensions
that arose during STA’s strategic management processes.

4. FINDINGS
The authors note that while STA had
detailed strategic plans, the
absence of clear implementation
guidelines led to various
interpretations and practices across
the organization. Managers and
employees often had to figure out
how to implement strategies on their
own, leading to inconsistency and
strategic drift. This tension shows
how planned strategies often do not
unfold as intended due to the
complex, dynamic nature of public-
sector organizations.
PLANNED VS. EMERGENT
STRATEGIES
The digitalization strategy, while
symbolically important for the
organization’s legitimacy (both
internally and externally), was not
always practical. Employees
expressed uncertainty about its
actual utility, with some questioning
whether it brought real value or if it
was simply a political tool to gain
external approval. This tension
reveals the challenge of aligning
strategies that satisfy external
demands with those that are
practical for everyday operations.
LEGITIMACY VS. PRACTICALITY
The organization faced the dilemma
of maintaining traditional
administrative structures (such as
rigid reporting systems) while trying
to foster innovation and flexibility.
STA’s digitalization strategy
encouraged a more entrepreneurial
approach, but its ingrained
bureaucratic culture often stifled
innovation. Many respondents
reported that excessive
administrative tasks consumed time
that could have been spent on more
creative, value-adding work.
ADMINISTRATIVE
MANAGEMENT VS. INNOVATIVE
APPROACH
STA, like many public organizations,
was pushed to make more of its
data accessible as part of its
digitalization strategy. However,
concerns about security, especially
with sensitive infrastructure
information, created a tension.
Respondents were unclear about
which data should be shared and
which should be protected,
highlighting a lack of guidance in
navigating this balance.
CCESSIBILITY VS. SECURITY

5. HIGHLIGHTED TENSIONS IN STRATEGIC
MANAGEMENT
Planned vs. Emergent Strategies: The study shows that strategic plans often evolve unpredictably in public-sector organizations. This
highlights the need for flexibility in strategic management, where strategies should not be overly rigid but allow for adjustments based on
emerging needs and circumstances.
Legitimacy vs. Practicality: Public organizations often adopt strategies to fulfill external requirements or gain political legitimacy. The
challenge is ensuring that these strategies are also useful and practical for day-to-day operations. Strategies driven primarily by
legitimacy can become disconnected from the actual needs and capacities of the organization.
Administrative Management vs. Innovative Approach: The tension between maintaining bureaucratic control and fostering innovation is
especially pronounced in public-sector organizations. Innovation is crucial for addressing modern challenges, but it is often constrained
by bureaucratic procedures. The case of STA shows how difficult it is to balance these conflicting demands.
Accessibility vs. Security: As public-sector organizations increasingly adopt digitalization, the tension between making data accessible
and ensuring security becomes critical. Organizations like STA need clear guidelines to navigate this tension, ensuring they protect
sensitive information while fulfilling their public service mandate.

6. PROPOSITIONS FOR FUTURE RESEARCH
Investigating how
public organizations
can better integrate
emergent strategies
with formal planning.
Understanding how to
effectively manage
the tension between
data accessibility and
security, especially as
digitalization expands.
Exploring ways to
balance the need for
external legitimacy
with the internal
practicality of
strategic
management.
Examining how public
organizations can
foster innovation
without sacrificing
necessary
administrative
controls.
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7. WEAKNESS
Keterbatasan Generalisasi
Kurangnya Pengujian Kuantitatif
Fokus Terbatas pada Digitalisasi
Kurangnya Perbandingan dengan Studi Kasus
Lain
Tidak Menyentuh Aspek Implementasi yang
Lebih Teknis:
STRENGTHS
Studi Kasus Mendalam
Kontribusi Terhadap Literatur Strategizing
Identifikasi Tensions dalam Manajemen
Strategis
Aplikasi di Sektor Publik
Implikasi Praktis dan Teoretis

8. CONCLUSION
The study provides a comprehensive analysis of
strategic management in public-sector
organizations, particularly focusing on the
practical challenges and tensions that arise. The
Swedish Transport Administration’s experience
offers valuable insights into how public
organizations can manage these tensions,
especially in the context of digitalization. However,
it also highlights the complexity of applying
strategic management principles in practice,
where real-world dynamics often deviate from
planned approaches.

9. THANK YOU
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