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Strategy of public organization: concept and formation peculiarities


Strategy of public organization: concept and formation peculiarities


Shveda, Nataliia
Tataryn, Nadiia

Bibliographic description:


Shveda, N. & Tataryn, N. (2019) Stratehiia publichnoi orhanizatsii: poniattia ta osoblyvosti formuvannia [Strategy of public organization: concept and formation peculiarities]. Sotsialnoekonomichni problemy i derzhava [Socio-Economic Problems and the State] (electronic journal), Vol. 20, no. 1, pp. 131-140. Available at:

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Ternopil Ivan Puluj National Technical University







public organization
strategy development
strategic goals
strategic outcomes



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The essence of strategy in the public sector, its differences from the strategy of a commercial organization have been described and some features of strategy in the public sector have been given in the article. Strategy is a prerequisite for the success of any public sector organizations. The strategy allows focusing all employee efforts on desired goals, as well as leading the public organization in a right direction. For any public organizations, financial indicators of strategy are not decisive, because they are not profit making organizations. The financing of a public organization is often done through third-party financial investments, but the costs and revenues must be clearly estimated. It is determined that effective strategies can emerge only as a result of collaboration between all the management levels of the organization and within them. The strategy in the public sector must meet stringent requirements identified as follows: to create values; to manage available resources effectively; being acceptable to all managers; being based on forecasts and accurate information; being flexible enough to adapt to unexpected changes in the external and internal environment. The criteria which are to be used for choosing or improving the strategy correctly are identified and their classification into groups in the form of questions that need to be answered is proposed. It is recommended to reconsider or reject the strategy if indefinite or negative answers are received in any of the groups of questions. Various reasons of many strategies failure at the implementation stage are listed. It is stated that the correct choice of the order of strategy formation contributes not only to the effective strategic management of the organization, but also to the achievement of a high capacity to meet social needs.

Keywords: strategy, public organization, strategy development, mission, strategic goals, strategic outcomes.



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Scientific Journal "Socio-Economic Problems and the State", 2019


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Scientific Journal "Socio-Economic Problems and the State", Vol.20, No.1




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