Changing values in the modern public sector: the need for value‐based leadership

Abstract

PurposeThe past 30 years have been a period marked by extensive modernisation programmes in the public sector. Principles taken from the New Public Management agenda have been adopted, and market solutions have been implemented across a broad range of service areas. These reforms have challenged the existing organisational culture of many public sector institutions. The purpose of this paper is to examine whether there has been a detectable change in the dominant values found in professional organisations within the public sector over the past decade, and if so, what challenges the leaders are faced with as a result of these changes.Design/methodology/approachThe empirical data are based on a quantitative survey of leaders in a large Norwegian municipality with a total population of 189 such leaders. Of these, 155 returned the questionnaires, giving a response rate of 82 per cent.FindingsThe results of the study show that two central values connected to the New Public Management agenda have gained increased importance over recent years – namely “meeting the needs of individual users”, and “renewal/innovation”. Of the listed values perceived as having become more important, these were ranked as the top two. At the same time, values traditionally associated with the public ethos continue to enjoy a strong position, whereas purely economic values remain relatively insignificant.Research limitations/implicationsAll in all, this study shows that the landscape of values in the public sector is changing, and there are strong indications that traditional values have come under pressure from new values embedded in the on‐going institutional reforms.Originality/valueThe paper shows that in a situation where values are changing, leaders may need to put greater emphasis on value‐based leadership.