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This study provides insights into knowledge transfer§and organizational learning in implementing recent§public sector reform in Victorian local government. Best Value was introduced by the Bracks Labor§government in 1999 following initiatives of a§modernisation program in the UK. The program s§primary objective is alignment of service delivery§with local needs; and, ensuring local authorities§respond to constituents by providing avenues for§feedback and participation in shaping their§communities. The study documents how organizational§development practitioners make Best Value operational§and resolve every day concerns. The Alchemic§Life-Cycle is a grounded theory explaining transition§from a prior management regime - based on market§competition principles, to Best Value. Practicing§Alchemy conceptualises the basic social process§explaining how inevitable uncertainties, accompanying§shifts in political and intellectual understandings§of public sector management, are routinely dealt§with. Findings indicate service quality can only be§adequately conceptualised in the context of the§historical, geographical and political legacies of§the local authorities concerned.
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