As a new and flatter organization replaces the traditional public organization, it would need more of strategic public management. Key decisions in team production relate to the employment of outcome measures for both monitoring of real activities as well as the reform of the structuring of these activities. Only outcome measures could constitute the starting-point for public sector strategic management. A concept of strategic management for public services must include a theory of public leadership, resulting from the mechanism of credit and commitment on the part of the team providing services. A theory of strategic public management must take into account the specific features of the public sector as well as include the implications of rule of law. Given the criticisms of the rational decision model, a theory of strategic management must pay attention to the lessons from public administration about bounded rationality and the possibility of pathologies or organized foolishness in public organization.
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