Managing organisational change in the public sector: Lessons from the privatisation of the Property Service Agency

Abstract

Whilst organisational change appears to be happening with increasing frequency and magnitude in both the public and private sectors, most of the major studies of change focus on the private sector and tend to derive their approaches to change from that sector. From a review of the literature, it is argued that there is no "one best way" to manage organisational change but that public sector organisations need to adopt an approach to change which matches their needs and situation. The article examines the privatisation of the Property Services Agency (PSA) in order to draw lessons as to how the public sector can and should manage change. It is shown that the privatisation was characterised by a lack of clarity, an over‐emphasis on changes to structures and procedures, and staff resistance. However, underpinning this was an inappropriate approach to change. The article concludes that the main lessons of the PSA's privatisation are that, in such circumstances, it is necessary to adopt an approach to change which incorporates both the structural and cultural aspects of change, and which recognises the need to appreciate and respond to staff fears and concerns.