Managerial approaches, frameworks, and practices for business model application in public services management in the VUCA environment

Abstract

Abstract Significant gaps in public services management were highlighted when service-dominant logic emerged in services science, resulting in fundamental changes in attitudes. The business model application in public services was initiated by offering public service logic. However, this concept requires justification of its interfaces with management approaches, frameworks, and practices. The VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) environment has changed the existing managerial approach in organisational performance and services management. This paper aims to highlight the key aspects and justify the application of services management approaches, frameworks, and practices (Agile practices, customer experience management frameworks, and the design thinking approach) that coincide with the business model approach in public services management (public service logic) in a VUCA environment. In this paper, the Cochrane Guide to Literature Reviews was loosely followed. The focus was on academic publications and such expert sources as webinars for practitioners. Only publications and expert sources in English were included. The Scopus search engine was used for academic sources. Publications covering at least two of the following domains were included: Customer experience, business model, Agile practices, design thinking approach, public services, and VUCA. The expert sources were selected using purposive sampling when communities of practice were identified by authors with expert knowledge, and the main communication channels within each community of practice were sampled. The analysis showed that public services are defined as public goods that the State’s government commits to deliver in line with public values by applying a customer-centric approach. Integrating the design thinking approach and Agile practices help create customer-centric solutions for the customer experience management framework as design thinking helps understand what to do, while Scrum (one of Agile practices) gives the autonomy in deciding how to do it. Each analysed managerial method contributes uniquely to improving public services management in a VUCA environment.