Value‐based management in local public organizations: a Danish experience

Abstract

In this article the authors discuss the utility of value‐based management on the basis of the case of value‐based management in the Mayor’s office of the administration of the Municipal of Aalborg, Northern Denmark. This was done in response to the pressure on public organizations in complex Scandinavian welfare states. They argue that value‐based management was introduced as an efficient way to make the organization more open to stakeholder expectations and demands, in particular the increasing request for efficiency of public organizations by citizens. Accordingly, value‐based management is a way to make public organizations less bureaucratic and more service‐oriented in a welfare state which is more open to management strategies from private firms. In particular they emphasize the significance of middle managers for the success of the process in organizations. Middle managers are requested to internalize values in their daily work. If this is done value‐based management is an efficient way to improve boths the ethics and the utility of public organizations without transforming them totally in to private market‐driven organizations.