Organizational form is one of the key determinants of organizational performance. Choice of organizational form for public organizations in developing countries can facilitate or inhibit performance. In this paper an approach for choosing appropriate organizational forms is outlined for public organizations using three steps: 1. Mapping key stakesholders 2. Deriving criteria for choice of form from stakeholder expectations 3. Matching criteria to alternatives. The approach is illustrated using the example of a national railway system. Some lessons for theorists and practitioners are drawn.