ABSTRACT

Organizational design is about designing multiple spaces for public value, where different stakeholders interactively intertwine the different dimensions of value, while constantly adapting to changes in the environment. The concept of public value has expanded the ambition of public organizations, encouraging them to create desirable societal outcomes together with stakeholders. Yet serving all dimensions of public value leads to constant choices and challenges for frontline staff, managers, and stakeholders, potentially leading to never-ending confusion and conflict. The concept of public value encourages public organizations to strive for desirable societal outcomes, working with private and public stakeholders to fight injustice, boost education, encourage public health. Public organizations are encouraged to collaborate with their partners in co-creating value. Having separate value propositions requires regular managerial consideration of the activity portfolio. Combining the distinct activities into unified value creation requires constant coordination management.