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The aim of the article is to discuss different strategies of managing fiscal crisis and concomitant PM reforms to support austerity measures in Lithuania, underlining strategic management component in particular. The case study of Lithuania is presented and analysed seeking to distil some important conclusions and lessons learned. The Lithuanian government took the following approach to reform the strategic management system in a time of fiscal crisis: introduced effective mechanism to implement policy priorities, changed the way the budgets are allocated from appropriations to budgets based on results and priorities and attempted to enhance results based culture via reform of the civil service system. The Lithuanian government decided on a small handful of policy priorities and was relatively successful at establishing an effective mechanism for the formulation and implementation of these priorities, however, the efforts to introduce senior civil service as an important target group for advancing coordination and overcoming sectorial boundaries was not successful.

Redisigning the Strategic Managment System in a Time of Fiscal Crisis in Lithuania