After the many years of public‐sector reforms in advanced capitalist democracies, a concept of strategic management for the delivery of public services would be highly relevant for the conduct of operations by public organisations, or bureaux, as well as in schemes of outsourcing. However, it must take into account the specific features of the public sector (such as the occurrence of bounded rationality and the risk of garbage‐can decision processes) as well as the implications of the rule of law. Outcome measures constitute the starting point in the derivation of public‐sector strategic management. As the ‘new public organisation’ replaces bureaucracy, then the flat and boundary‐less organisation will need more of a strategic management focus, especially when combined with outsourcing.
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