Abstract
Provides an overview of the literature on public sector reform, total quality management (TQM) and strategic planning. Traces the change efforts and road to privatization of Asset Services, which is a maintenance contractor with about 2,000 staff and a business unit of a large Australian government department. Describes how, during the period 1989‐1996, Asset Services undertook a process which illustrates the integration of customer focus, quality principles and strategic business planning. Introduces the concept of the business improvement leader, and discusses some of the many TQM and business planning activities undertaken to the point of being fully commercialized. Identifies a number of factors influencing the success of this business unit.
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