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Changes in governmental policies designed to restructure the Portuguese higher education system and its institutions are defined under the influence of New Public Management. In the Portuguese context, external pressures unduly influence attempts to create a new institutional environment. But the ways in which higher education institutions respond to external pressures are also dependent on internal processes and on actors’ actions. Thus, it is important to identify the main characteristics of the actors’ institutional power, as well as their capacity to participate in and influence institutional strategies. Amongst these actors, deans hold a key position. This chapter analyses the position, power and sphere of action of the Portuguese deans in relation to the strategies they develop to cope with increasing state-sponsored managerial pressures. The chapter is based on a qualitative study involving 26 interviews …