Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ABSTRACT
This research presents a theoretical framework for studying strategic planning in the public
sector that merges research on planning in the private sector and research on the differ-
ences between public and private organizations. The study identifies a set of variables rele-
vant to this framework and measures these variables for fourteen departments within the City
of Milwaukee using a wide range of survey questions that were tested and implemented in
extensive interviews. Correlations for these variables display consistent patterns that lend ev-
idence to key debates and direct future research in the field.
Since the 1980s governments at all levels of this country and others have been implement-
ing a series of related reforms that focus on making government more productive, respon-
sive, and focused on performance. For many governments the first stage of reform was
adopting “total quality management” or similar quality-focused innovations. Soon after-
ward governments began adopting other private-sector management practices such as strate-
gic planning, performance-based budgeting, cost accounting, and benchmarking under the
assumption that what works for business would work for government. However, numerous
scholars and practitioners have noted that significant differences exist between public and
private organizations that may preclude simply extrapolating these methods to the public
sector. At a minimum such differences may affect how the methods are implemented and,
possibly, their overall effectiveness (Bryson and Roering 1987; Nutt and Backoff 1993;
Ring and Perry 1985). Although there has been much empirical research in the past thirty
years on the effectiveness of strategic planning and how it is implemented in different en-
vironments, most studies focus on organizations in the private sector. Additionally, our the-
oretical and practical knowledge of this key reform in public organizations is primarily
defined by the case studies and descriptive surveys that constitute the majority of research
in this area (see, e.g., Berry and Wechsler 1995; Boston and Pallot 1997; Kissler et al. 1998;
Roberts and Wargo 1994; Streib 1989; Wheeland 1993).
If the academy is to help inform the debate on the public-sector reforms of the past
twenty years, we need to move our understanding of strategic management beyond knowl-
edge of how it functions in unique settings to broader-based knowledge of what works in a
DOI: 10.1093/jopart/mug031
Journal of Public Administration Research and Theory, Vol. 13, no. 4, pp. 491–519
© 2003 Journal of Public Administration Research and Theory, Inc.
492 Journal of Public Administration Research and Theory
range of settings. Such efforts will be facilitated if they are grounded in an accepted theo-
retical framework and are built on existing knowledge of strategic management in the pri-
vate sector. This study works toward fulfilling this larger agenda in two ways. First, it brings
together two strains of research to identify a theoretical framework within which to study
strategic planning in the public sector and a set of variables relevant to this framework. One
strain is represented by the wealth of empirical research on strategic planning and manage-
ment in the private sector. The other strain examines the differences between public- and
private-sector organizations.
Second, this research explores the application and possible relationships of key vari-
ables from this framework for fourteen departments in the City of Milwaukee, Wisconsin,
which began implementing strategic planning at a citywide level in 1990 and the depart-
mental level in 1993. The primary purposes here are to pilot test a wide array of survey
questions and indexes and to provide preliminary information on the reasonableness of the
framework and theoretical constructs presented in step one. The survey was implemented
using focused interviews of key strategic planning personnel in all departments in the win-
ter of 1994–95, and a lengthy survey was administered through a second round of inter-
views with the same people in the winter of 1996–97. Although this research is clearly ex-
ploratory, the consistent patterns among some of the variables lend evidence to key debates
and propositions within the two strains of research and provide a good foundation for future
studies of strategic planning in government.
The next section presents the theoretical framework and summaries of relevant re-
search. Following sections present a brief history of strategic planning in Milwaukee and a
discussion of the survey, methodology, and findings.
and management functions and the relationships among the context in which these func-
tions take place, the types of processes employed, and the impact of these activities on orga-
nizational performance (for reviews of this research, see Bourgeois 1980; Miller and Cardi-
nal 1994; Papadakis, Lioukas, and Chambers 1998; Pearce, Freeman, and Robinson 1987;
Ring 1989).
Underlying this research is a broader theoretical paradigm encompassing two processes
critical to this model: decision making or strategy making under uncertainty and adapta-
tion of the organization to its environment. With respect to decision making, strategic plan-
ning is characterized as structured problem solving by a group of individuals rather than
one person. According to this view, planning processes are often arrayed along various con-
tinuums, two of which are important here. One continuum reflects the methods of problem
solving as incremental versus synoptic. The second continuum, which is particularly rele-
vant to public organizations, refers to stakeholder participation in planning as integrative
versus exclusionary. Synoptic planning is more comprehensive, formal, and sophisticated,
but incremental planning tends to be simpler, less rational, and based more on trial and error.
Integrative approaches include a broader range of stakeholders from inside and outside the
organization throughout the planning process, which means that bargaining and agreement
can be an important factor in each stage of planning. In contrast, exclusionary approaches
concentrate planning among fewer people. The process may be centralized within top man-
agement or specialized to another part of the organization (Deyle 1994; Methe and Perry
1989; Toft 1989).
The adaptation dimension of this paradigm emphasizes that how an organization adapts
to its environment is contingent on that environment and the long-term interactions taking
place. Adaptation is defined by whether an organization’s structure fits its environment as it
moves through cycles of fit, environmental change, misfit, structural and procedural change,
and new fit. Also, the greater the fit between the organization’s environment and structure,
the better its performance. Applied to strategic planning, this conceptualization suggests
that if planning is to improve organizational performance, then the process should fit the en-
vironment or context within which planning occurs (Child 1972). Exactly how context,
planning process (or other organizational process), and organizational performance are
linked is the subject of some debate. Figure 1 (Boal and Bryson 1987, 213) presents the
range of possible relationships among the three conceptual areas that are being examined by
empirical research in this field. Although these relationships are not necessarily mutually ex-
clusive, type A specifies that context directly affects planning process, which directly affects
performance. Type B specifies that context and process may have joint or independent ef-
fects on performance. Type C, which is closest to the notion of environmental fit, specifies
that the relationship between process and performance is contingent on context.
One point of agreement in organizational and planning research is that organizational
adaptation is the result of managing uncertainty and the environment to achieve a wide
range of political and operational objectives. Thus, an organization in a rapidly changing en-
vironment would not benefit from a highly bureaucratic organizational structure (formal,
rigid, rule-based, and hierarchical) that would hinder internal change and responsiveness.
Similarly, an organization in a complex environment will tend to delegate decision making
to specialists and invest more in monitoring. In contrast, an organization in a threatening en-
vironment or under greater pressure will have more slack and tend to centralize authority
and decision making (Chakravarthy 1987; Donaldson 1996).
Applying the notion of environmental fit to problem solving and strategic planning
494 Journal of Public Administration Research and Theory
Figure 1
Possible Theoretical and Empirical Relationships among Conceptual Areas of Strategic Planning
CONTEXT PROCESS
P PERFORMANCE
P
CONTEXT
PERFORMANCE
PROCESS
C) Interactive Effects
CONTEXT
PROCESS PERFORMANCE
suggests that organizations in more turbulent environments will tend to have less synoptic
and integrative approaches, and those in more complex environments will be more synop-
tic and specialized (which is also less integrative). Although uncertainty increases with en-
vironmental complexity and turbulence, it also is altered by how structured the organiza-
tion’s problems are (e.g., whether means-ends and cause-effect relationships are clear) and
how much information is available to the organization on its activities, environment, and
performance (Ring 1989). Given that the purpose of strategic planning is to reduce uncer-
tainty associated with ill-structured problems and a general lack of information and to in-
crease coordination, one might expect planning to be less synoptic but more integrative
when this type of uncertainty is high.
Figure 2 presents a diagram that conceptualizes the primary components of this theo-
retical paradigm and their relationships. The center of the planning system is the planning or
decision-making process, which often involves numerous stakeholders inside and outside
the organization. The uncertainty and perceptions of those involved, which are a function of
both the environment and the characteristics of the participants, are the most immediate fac-
tors affecting this process and the strategies it produces (Boulton et al. 1982; Deyle 1994;
Jauch and Kraft 1996; Papadakis, Lioukas, and Chambers 1998; Ring 1989). As an example,
consider two sets of planning participants in the same environment who have different lev-
els of familiarity and experience with strategic planning. In this case, one might expect to see
very different planning processes and strategies from each group (Simon 1969).
Additionally, the planning environment is conceptualized in two dimensions. One is in-
ternal to the organization and represents characteristics or features of the organization such
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 495
Figure 2
Detail of the Conceptual Areas of Strategic Planning
External Environment
Uncertainty S Organizational
a
t Performance
i Goal
s
Strategic Planning Process f
a Strategy
Success
c
t
i
o Organizational
& Perceptions n Performance
as its structure, technology, culture, capabilities of staff and management, leadership qual-
ities, and degree of internal change. The second dimension represents characteristics or fea-
tures that are external to the organization such as availability of resources, competitive pres-
sures, hostility, complexity, and turbulence or change. Features of both the internal and
external environments will affect the level of uncertainty decision makers face and, through
adaptation, the way in which planning occurs, who is involved in the process, and the prob-
lems it must focus on (Goll and Rasheed 1997; Grinyer, Al-Bazzaz, and Yasai-Ardedani
1986; McArthur and Nystrom 1991; Papadakis, Lioukas, and Chambers 1998; Yasai-
Ardedani and Haug 1997). Thus, a complex or rapidly changing organizational structure or
market is likely to increase uncertainty, which, in turn, may encourage more frequent and
shorter planning cycles in the long run.
The strategies developed through strategic planning are intended to help the organiza-
tion achieve its goals and solve problems in either environment. For instance, an organiza-
tion’s goal may be to improve coordination among mid-level managers or to obtain a higher
share of market sales. Although either of these objectives can be characterized as improv-
ing organizational performance, the former is associated more with improving strategic and
managerial capacity, which is an internal characteristic, than with the sales objective, which
focuses on changing the organization’s external environment. As indicated by figure 2, the
planning process may improve organizational performance directly and independently of the
strategies being developed. In this case the act of planning and strategizing may improve
communication, coordination, and shared vision within the organization even if the primary
purpose of strategic planning is to develop new marketing or sales strategies.
An important factor that can affect the impact of planning on organizational perform-
ance or strategy development is the participants’ satisfaction with the planning process and the
strategies it produces. Although satisfaction with planning is a perceptual feature that applies
to planning participants, it is often used as an indicator of planning impact or effectiveness.
496 Journal of Public Administration Research and Theory
In this case satisfaction with planning is considered to be a prior factor in organizational per-
formance or goal success; thus participants’ organizational performance is more likely to im-
prove and planning goals are more likely to be achieved if planning participants are satisfied
with the process (Boal and Bryson 1987; Nutt 1986; Simpson 1992). Finally, changes in or-
ganizational performance and the degree of success in achieving goals as a result of planning
and developing strategies are recognized by participants in future planning efforts, as is indi-
cated by the feedback loop in figure 2. In the long run, this continuous feedback provides the
mechanism by which an organization adapts its planning process to both the internal and the
external environments (Miller and Cardinal 1994; Ring 1989).
Yasai-Ardedani and Haug 1997). Other researchers find that the nature of the decision prob-
lem (crisis, familiarity and uncertainty, expected impact of problem) alters the comprehen-
siveness, formality, centralization, lateral communication, and politicalization of the plan-
ning process (Papadakis, Lioukas, and Chambers 1998).
claim that stakeholders are a critical difference between these sectors and that government
has a much broader scope of impact on its environment. Their research emphasizes the fol-
lowing points about public organizations. First, its goals are more vague, ambiguous, and
complex and often change, and information on achieving goals is weak or unavailable—as
is information about other aspects of its internal and external environment (Bozeman and
Bretschneider 1994).Second, its goals and operations have more external influence and con-
trol that is often broadly based, is more fragmented, and requires more interaction and co-
ordination with outside groups (Bozeman and Bretschneider 1994). Somewhat later, Nutt
and Backoff (1995) argue that the private-sector variables of market volatility and compe-
tition, which define environmental turbulence in those settings, should be replaced by the
need for action and responsiveness in public settings.
Perry and Rainey (1988) review thirty-two conceptual and empirical studies that focus
on the differences and similarities of organizations in these two sectors. In addition to the
items listed above, they note that governments tend to be more bureaucratic than private or-
ganizations. They define bureaucratic organizations as having more elaborate hierarchies and
greater centralization, rigidity, standardization, and formalization and as being more resistant
to change. The empirical studies they review also support arguments made by Nutt and Back-
off regarding the two key features of government noted above, but other studies by Rainey
and his colleagues are not as supportive of these claims. Their surveys of public managers’
perceptions and reviews of more current research do not show goals to be more vague and in-
formation to be less available in public organizations, and they only partially support the
claim that public organizations are subject to more external influence and control (Lan and
Rainey 1992; Rainey 1983; Rainey and Bozeman 2000; Rainey, Pandey, and Bozeman 1995).
One important study that deserves mention here is by Hickson and associates (1986)
and compares sixty-five top decisions in thirteen public organizations with eighty-five top
decisions in seventeen private organizations. Hickson and others find that top decision mak-
ing in public organizations, such as policy decisions associated with strategic planning,
tends to be sporadic. Consistent with claims regarding the bureaucratization of the public
sector, they note that sporadic decision making takes more time, involves more informal
interactions, has more impediments, is based more on negotiation, and requires authoriza-
tion. Contrary to surveys of managers, however, they note that sporadic decision making
also uses less accurate information and tends to occur in environments that are more com-
plex (many components that are diverse and interdependent) and more political (contentious
and externally influenced).
Figure 3
Constructs Examined in the Primary Conceptual Areas of Strategic Planning
Strategic Environmental
Planning Context
Process
because of their openness, their broader constituency, the greater attentiveness of their stake-
holders, and the authority of oversight entities (Bozeman and Bretschnieder 1994; Nutt and
Backoff 1987, 1993). As a result of such pressures, public organizations may also operate
under greater conflict. These characteristics constitute their political environment, which is
considered an important attribute of this sector relative to private organizations. However,
there is evidence that some political features are not more relevant or important to the be-
havior of public managers than to that of private managers (Hickson et al. 1986; Rainey and
Bozeman 2000). Including political variables in future research on strategic planning in the
public sector will be an important contribution to this debate.
Hostility or munificence is another critical element of an organization’s external envi-
ronment, although primarily for private-sector organizations, and is defined by the scarcity
or abundance of resources (Castrogiovanni 1991). Based on the argument that public-sector
organizations have a wider range of objectives than obtaining resources (e.g., market share, in-
creased profits), the concept of munificence and hostility should be defined more broadly for
public organizations. In addition to resources, economic conditions, and external organizations
500 Journal of Public Administration Research and Theory
(e.g., other governments), munificence or hostility in the public sector may be affected
greatly by political and social conditions that both determine objectives and constrain an or-
ganization’s ability to meet them. Other dimensions of the external environment that are
important for understanding the behavior of private-sector organizations, such as turbulence
and dynamism and the complexity of the task environment, could also be adapted to public-
sector organizations, but they are not examined here.
With respect to the internal environment, the greater bureaucratization of public or-
ganizations is a key difference between the public and private sector, and it is one that is
likely to affect the planning process (Perry and Rainey 1988). Two elements of this feature
are examined here—the centralization of the organization and its resistance to change. The
latter variable will be especially important, given that planning is relatively new to the pub-
lic sector in general and Milwaukee specifically. However, one element of bureaucratization
is not included here, which is the formalization of procedures and reliance on rules or stan-
dards (rule-based functioning), because of the failure of the instruments attempting to meas-
ure this variable.
Although the concept was developed with reference to private firms, technology is an-
other feature of the internal environment that is important to strategic planning and other or-
ganizational processes. In this case technology refers to the work being performed by the or-
ganization and encompasses many qualities beyond how work is structured and facilitated,
including the skills and knowledge of workers, the characteristics of the objects on which
work is performed, and even the cause-and-effect relations between actions and outcomes
(Thompson 1967). For private organizations, protecting their core technology from obso-
lescence and insuring its adaptability in a volatile market are the primary objective of plan-
ning and are likely to affect the design of the planning process (Grinyer, Al-Bazzaz, and
Yasai-Ardedani 1986). However, the vulnerability of the core technology does not seem as
relevant to public organizations as other dimensions of core technology, such as complex-
ity (interdependence and diversity of the work being performed) and uncertainty (lack of
knowledge regarding outcomes and the relationship between work and objectives). In this
case public organizations with more complex and uncertain technologies might have very
different planning processes or likelihoods of success in achieving objectives.
As discussed previously, the role and importance of technological uncertainty in public-
sector organizations are also the subject of much debate in the research on public–private
differences. Most authors assume that governments have broader goals that are more diffi-
cult to comprehend and measure and that this will affect such organizations in significant
ways. However, little research has been conducted on the impact of technological uncer-
tainty, and the many surveys implemented nationwide by Rainey and his colleagues do not
support the claim that public organizations have unclear and unmeasurable goals by com-
parison to private organizations. In this case, examining the impact of technological uncer-
tainty on planning processes and performance, with an emphasis on perceptions of goals and
cause-and-effect relationships, will contribute to this debate.
Inclusion of size and structural complexity in this analysis is based on the wealth of re-
search showing that organizational processes change depending on the size and complexity
of the organization (Scott 1998). Size is one component of complexity that can alter
economies of scale and affect the range of factors that must be incorporated into the plan-
ning process, how the process is conducted, and the impact of the process on the organiza-
tion. Change and turbulence in the internal environment may also affect how planning is
conducted and the difficulty organizations may experience with the process.
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 501
Three dimensions are examined in this analysis with respect to the strategic planning
process: comprehensiveness, the centralization and exclusion of external groups, and the
activation and involvement of stakeholders. Comprehensiveness is a key process variable in
much of the planning research on private organizations that is related to bureaucratization,
but it is also associated with more rational decision making and synoptic approaches to
planning (Goll and Rasheed 1997; Grinyer, Al-Bazzaz, and Yasai-Ardedani 1986; Methe and
Perry 1989; Toft 1989). Rational or synoptic processes, which may characterize decisions,
planning, or other areas of organizational behavior, are often contrasted with incremental
processes. The latter are associated with political processes involving more stakeholders,
which require more negotiation than is likely to exist in highly structured, centralized, and
bureaucratic situations. Given the political nature of planning in the public sector, it will
be important to examine these qualities of the planning process. Another feature of the plan-
ning process that is examined here—greater monitoring of organizational activities—
also is associated with rational and synoptic processes and the reduction of technological
uncertainty.
As indicated previously, three dimensions of the impact of strategic planning have
been studied in prior research: satisfaction with planning, organizational performance, and
goal success. Only the first two dimensions are examined here. Satisfaction with planning
is measured by perceptions of difficulty with the planning process, and organizational per-
formance is measured by determining whether planning improved the strategic capacity of
the organization. Technically, difficulty and satisfaction with the planning process repre-
sent the implementation of planning rather than organizational performance, but the former
are prerequisites to improving organizational performance and goal success. If planning is
not implemented adequately, or if participants are not satisfied with the process, then per-
formance is unlikely to improve. Although these variables have been used in the past to
measure the impact of strategic planning, it should be noted that their validity has been
questioned and that their use is somewhat controversial (Nutt 1986; Stone and Brush 1996).
The second dimension of planning impact, strategic capacity or the ability of planning
to improve managerial functions, represents the outputs of planning. The third dimension of
success in achieving objectives, which is not examined here, represents true performance
outcomes. This last dimension may be the most important, but assessing the performance of
public organizations may be difficult compared to assessing private organizations because
of the lack of data and the unclear goals in public organizations, as claimed by some of the
literature on differences between public and private organizations. The lack of data on public-
sector performance is apparent from private sector research that easily captures firm per-
formance from financial statements, in contrast to public organizations whose financial state-
ments indicate little about the policy objectives of government.
Keeping in mind that there are too few cases with which to examine complex rela-
tionships among variables, this research is only preliminary. Its primary focus is on testing
survey research questions and building a basis for future research. As such, a more thor-
ough discussion of the survey, the operationalization of the variables, and the methodology
is critical here. But, prior to that, the initiation and implementation of strategic planning in
Milwaukee are reviewed briefly to provide the larger context within which planning took
place.1
1 A more in-depth discussion and analysis of the initiation and implementation of strategic planning in Milwaukee
is presented in Hendrick 2000.
502 Journal of Public Administration Research and Theory
their units and objects of expenditure in accordance with objectives stated in their strategic
plans.
The final element of System 94 was to link the plans, budget, and objectives with in-
ternal management indicators and the accounting system by way of a new financial man-
agement information system. The internal management indicators were to be developed and
used by managers to monitor and measure their service delivery. Numerous measures al-
ready existed in some departments prior to 1993, which provided an infrastructure to de-
velop more comprehensive performance-monitoring systems. Development of the new
financial management information system, under the authority of the elected comptroller,
had been planned and under way for some time prior to 1994 (Benson et al. 1995; Kinney
1995b; Kreklow 1999).
2 A more detailed list of the questions and items within each question can be obtained from the author.
504 Journal of Public Administration Research and Theory
were included in consultation with a colleague who had implemented similar questions in
a survey of strategic planning in the private sector.3 Strategic and managerial capacity is
measured as an average of nine items that represent administrative concerns, such as re-
source allocation, communication, and coordination.
Five indexes were constructed to measure different characteristics of the planning
process: the comprehensiveness of planning, the breadth of stakeholder participation, the
participation by persons who are external to the department versus those who are employed
within the department, the centralization of planning within the department, and the extent
to which the department monitors its performance in five areas. The questions included in
the comprehensiveness of planning (C) index measure the areas in which planning occurs
(C-4: capital improvement, personnel, technology), the environmental factors considered,
the depth of analysis of these factors (C-7: monitoring, forecasting, developing assump-
tions), and the tools used (C-3: documents, written plans, forms). The index also includes el-
ements of formalization (C-3 and C-4: written plans and forms), frequency (C-5: scheduled
review), and the sophistication of the planning process (C-6 and C-7), which are all factors
related to comprehensiveness.4 The tasks of monitoring, forecasting, and developing as-
sumptions in question C-7 are documented in research on environmental scanning in private
organizations (Yasai-Ardedani and Nystrom 1996). As indicated in the appendix, this index
represents the percent of positive responses for all items in C-3 through C-6 plus positive re-
sponses to all three tasks in each of the eight items of C-7 (thirty-nine total possible items).
One other aspect of comprehensiveness is the extent of monitoring (D) of objectives
and operations, but this index also includes measures of the resources and expertise avail-
able for such tasks, which are not necessarily related to comprehensiveness. Although mon-
itoring is important to planning, it might also be viewed as a dimension of uncertainty and
the perceptions of the environment rather than the planning process because it measures
the availability of information about the environment and organizational performance.
The index for breadth of stakeholder participation (E) measures the involvement of
eight stakeholder groups in four key process areas of triggering awareness and the elabora-
tion of strategic issues (E-11), generating actions to resolve these issues (E-12), evaluating
and choosing strategies (E-13), and monitoring the impact of strategies (E-14). Each area
represents a different recognized stage of the planning process, although triggering aware-
ness and the elaboration of strategic issues were combined based on analysis of responses
to the first round of interviews (Bryson 1995). Given the emphasis on public organizations
having more external influence than private ones, and the importance of stakeholder par-
ticipation to planning in government, the index external versus internal participation (F) is
calculated as a ratio of external to internal participants in the four planning stages above. In-
ternal centralization (G) of planning measures the involvement of department heads in all
four stages relative to the influence of division heads and employees. One other process
variable, commitment to planning (H), is my subjective assessment of the commitment of
the department’s leadership to strategic planning, which is based on two rounds of extensive
interviews.
Ten contextual or environmental variables are measured, as well as another indicator
of uncertainty and perceptions. Seven contextual variables target the internal environment,
3 Masoud Yasai-Ardedani contributed valuable assistance in reviewing and helping to construct questions and
response areas in the survey, especially those in the performance and planning process dimensions (see Yasai-
Ardedani and Haug 1997).
4 The C-number designations refer to the survey questions associated with variable C as presented in the appendix.
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 505
Robinson 1987). However, the same concern applies to the responses to other questions in
the survey. In fact, based on my years of observing the departments and the city as a whole,
it was apparent that some departments’ responses were biased in their favor.
DATA ANALYSIS
Although there are not enough cases to perform an analysis of three-way relationships
among the different dimensions of planning, the data do allow for simple correlations and
the presentation of scatterplots to determine if observed trends are reasonable and worth
exploring in future research. Consistent with the theoretical framework, correlations were
examined for each performance variable with all contextual and process variables and for all
process variables with all other process and contextual variables. Table 1 presents correla-
tions for all variables; however, those in boldface type are not relevant to the theoretical
framework presented here.5
Figures 4 and 5 present scatterplots of the dependent variable strategic capacity with
two key-process variables (independent) as visual examples of the kinds of relationships
present in table 1. However, scatterplots for all sets of variables were examined to determine
where individual departments fit along these trends and if any one department might be re-
sponsible for the high correlations, as is prone to happen with a few cases.
With respect to organizational performance, the correlations show that strategic ca-
pacity (B) is higher in departments with more comprehensive planning (C), more extensive
monitoring practices (D), a greater need for coordination (L), and clearer and more easily
measurable objectives (I). The correlations also show that planning is more difficult (A) in
departments that have a more decentralized planning process (G) and greater commitment
to planning within the organization (H). The former findings are consistent with evidence
from the private sector that firm performance is improved in organizations with more formal,
comprehensive, and rational planning processes. The latter findings make sense from the
perspective that strategic planning is more difficult to implement than bureaucratic (top-
down command and control) means of determining objectives and resolving strategic is-
sues because those who are committed to planning put more effort into it and, as a result,
have more problems implementing it.
Examining figure 4 shows how specific departments are arranged with respect to strate-
gic capacity and the comprehensiveness of planning. In this case, most of the departments
that indicated that they had comprehensive planning were the same as those identified
throughout the interviews with other departments and top administrative personnel as hav-
ing a reputation for good planning or a long-term commitment to the process. Moreover,
many of these departments were known for monitoring their environments and having rel-
atively clear or narrow objectives (e.g., the Health Department, Fire Department, and As-
sessor’s Office).6
The surprising outcome among the performance relationships was in the City Trea-
surer’s Office. This department ranked high on comprehensiveness of planning, monitor-
ing, and capacity but had no clear mandate to implement strategic planning because its
5 The table also indicates which correlations have probabilities less than or equal to .1 and .05 as an indication of
the reliability of the relationships.
6 The Milwaukee Assessor’s Office maintains an extensive property file that is used by other departments and
many researchers in the area, and it has been on the forefront of developing geographic information system applica-
tions using these data.
Table 1
Pearson’s Correlations
Standard
Average Deviation A B C D E F G H I J K L M N P Q R
Organizational performance
A) Difficulty with planning 1.44 .55
B) Strategic & manager capacity 1.43 .57 .09
Strategic planning process
C) Comprehensive planning .63 .21 .20 .73**
D) Extent of monitoringa 4.0 .72 –.31 .60** .31
E) Broad participation in planning 2.2 .32 .46* –.25 –.08 –.63**
F) External / internal participants .53 .20 –.06 –.43 –.17 –.51* .63**
G) Internal centralization 14.0 4.3 –.58** .03 –.04 .39 –.36 .33
H) Commitment to planning .50 .52 .51* .23 .57** .05 .34 .01 –.30
Uncertainty and perceptions
I) Clear & measurable objectives 2.1 .45 –.02 .55** .60** .58**–.64**–.66**–.03 .07
Context: internal environment
J) Size & structural complexity .06 1.0 .11 –.39 –.24 –.24 .40 .04 –.34 .29 –.30
K) Scope of operations 3.3 1..4 .46* –.41 –.17 –.73** .65** .28 –.61** .25 –.43 .51*
L) Need to coordinate technology 3.0 1.1 –.03 .60** .17 .63**–.57**–.69**–.13 –.08 .63**–.14 –.29
M) Routine and structured process 2.1 1.1 .23 –.24 .00 –.26 –.12 –.27 –.19 –.15 .21 –.26 –.05 –.33
N) Strategic planning culture
and training 3.2 .59 .36 .20 .16 .24 .35 .08 –.15 .37 –.05 –.26 –.06 –.09 .11
P) Internal change 3.3 .57 .14 –.34 –.09 .01 .14 .19 –.01 .27 –.23 .16 .22 –.33 .14 .49*
Context: external environment
Q) Goal conflict and congruence 4.0 .51 .16 .34 .23 .12 –.07 –.04 .32 .20 .02 –.09 –.34 .06 –.11 –.26 –.50*
R) External influence .34 .17 .10 –.17 .01 –.24 .13 –.04 –.14 .39 –.15 .63** .26 –.03 –.14 –.51* –.21 .52*
S) Favorable-hostile environment .10 .47 –.02 –.10 –.12 .03 .17 .10 .03 –.15 .15 –.19 –.16 –.10 .23 .31 –.40 –.03 –.19
Note: Correlations in boldface type are not relevant to theoretical framework.
a
Also a component of Uncertainty and perceptions.
*p ≤ .10; **p ≤ .05.
507
508 Journal of Public Administration Research and Theory
Figure 4
Dependent Variable Strategic Capacity, Comprehensiveness of Planning
2.50 -
assessor
r = .73
2.00 - court
comptroller treasurer
Strategic Capability
fire
library
health
1.50 - employ relatn
port
econ develop
1.00 - public works
police
administration
.50 -
build inspct
.00 -
.10 .20 .30 .40 .50 .60 .70 .80 .90 1.00
Comprehensiveness of Planning
Figure 5
Dependent Variable Strategic Capacity, Clarity and Measurability of Objectives
3.00 -
2.00 - court
comptroller treasurer
library fire
1.50 - employ relatn health
port
.00 -
3.00 3.50 4.00 4.50 5.00
Clarity/Measurability of Objectives
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 509
head is elected and not subject to the authority of the mayor. However, the City Treasurer
has many characteristics similar to the Port of Milwaukee (an enterprise), which also has
relatively high scores on these variables. The Port of Milwaukee also was noted for im-
plementing innovative management methods that greatly improved its profitability in the
face of a dramatically declining market for port facilities in Milwaukee. Both departments
are small, which may make it easier to implement comprehensive planning, and are man-
aged by persons with more experience in and a stronger identity with the private sector. Ad-
ditionally, much of the City Treasurer’s mission encompasses, by statute, monitoring and
data collection.
However, figures 4 and 5 and the descriptive statistics for the capacity variable reveal
issues about the capacity variable that undermine these findings. First, none of the fourteen
departments indicated that planning had any negatives effects on managerial or strategic
capacity. Thus, the range of values for this variable is low—from 0 (none) to 2 (highly pos-
itive). This raises the possibility that a more broadly and appropriately ranged response
scale of 0 (none) to 5 (highly positive) might yield a different set of correlations. Addition-
ally, it was apparent from discussions with respondents that additional items such as setting
priorities, generating strategies, and linking actions with objectives should be added to this
question. Most organizations also claimed to have very comprehensive planning processes.
In fact, half of the fourteen departments answered yes to at least 70 percent of the seventy
comprehensiveness items, which seems inflated.7
The correlations for difficulty with planning (A) indicate that departments that involved
more people, both inside and outside the organization, in planning (E) and gave them greater
control over the process (G) were more likely to perceive the process as difficult. These de-
partments included the Department of City Development, the Department of Public Works,
the Health Department, and the Department of Employee Relations, which is consistent
with information obtained from the first interviews and discussions with other departments.
In this case the Department of City Development expressed much frustration over the plan-
ning process because of the number of different constituencies involved in its operations, the
department’s responsibility for many goals in the citywide plan, and pressure from the
Mayor’s Office on the content of the its plan. Both the Department of Public Works and the De-
partment of Employee Relations were noted for their attempts to implement a more bottom-
up approach to strategic planning, especially during the second or third round of strategic
planning.
Examining the correlations for the process variables shows that departments with more
comprehensive planning (C) tend to have clearer and more measurable objectives (I) and
greater commitment toward planning (H). These departments also monitor their environ-
ments (D) more. This is consistent with the impact of these variables on strategic capacity
(B) and involves the same departments: the Fire Department, Assessor’s Office, Health De-
partment, Port of Milwaukee, and City Treasurer have high values for these variables; the
Police Department, Building Inspection, Department of Administration, and Department of
City Development have low values for these variables. It must be noted, however, that the
relationships among the process variables of monitoring (D) and comprehensiveness of
planning (C) with the performance variable of strategic capacity (B) may be spurious and
7 Figure 5 suggests that the City Treasurer’s Office may account for much of the correlation between strategic
capacity and the clarity and measurability of objectives, given its outlying location on the scatterplot. However,
removing the City Treasurer and recalculating the Pearson’s r increases the value slightly from .55 to .59, showing
that this department is not defining the relationship between these two variables.
510 Journal of Public Administration Research and Theory
can be explained by the clarity and measurability of objectives (I), which is characteristic of
uncertainty. This claim is supported by the correlations of clarity and the measurability of
objectives (I) with monitoring (D) and the comprehensiveness of planning (C); the theoret-
ical framework in figure 2 shows that uncertainty and perceptions should have a direct im-
pact on the planning process in comparison with the process variables. However, past re-
search indicates that performance is determined by process more than other dimensions,
and determining the existence of such complex relationships requires more cases and other
methods of analysis beyond the simple correlations presented here. Monitoring (D) also is
higher in departments with a smaller scope of operations (K), which is a dimension of tech-
nological complexity and may represent another aspect of uncertainty.
Other conditions associated with monitoring among the fourteen departments are a
greater need for coordination (L) and more exclusionary planning practices (B). Likewise,
the clarity and measurability of objectives (I) are associated with fewer external partici-
pants in the planning process (F) and fewer participants overall (E). However, the latter cor-
relation is explained to some extent by the Office of the City Treasurer, and the former is re-
duced from r = –.66 to r = –.51 when this department is removed from the analysis. There
is also a trend toward fewer external participants (F) and less overall participation by stake-
holder groups in the planning process (E) when the need for coordination (L) is high, but ob-
servation of the scatterplot also shows that the City Treasurer may explain the relationship
with overall participation. This outcome is confirmed when the correlation drops to .25
when this case is removed from the analysis.
Examining the scatterplots for the variables of participation, monitoring, coordination,
and clarity of objectives also does not show much consistency among the placement of de-
partments. For instance, the Department of Public Works is high on participation and low on
the clarity and measurability of objectives, but it is moderate on coordination and monitoring.
Additionally, there are some departments whose scores for the participation and coordination
variables are not consistent with responses from the interviews, such as Building Inspection,
which should have a high need for coordination, and the Comptroller’s Office, which should
have a lower level of participation by stakeholder groups in its planning process.
If extent of monitoring (D) is viewed as an uncertainty variable rather than a process
variable, then it becomes apparent that the variables representing uncertainty about the en-
vironment, decision problems, and the means-ends relationships between activities and out-
comes have the most consistent relationships with different features of the planning process
in Milwaukee. In this case departments with more uncertainty have planning processes that
are less comprehensive and may exclude most stakeholders except top managers. It is also
interesting that the two internal environmental variables with the strongest correlations with
the organizational performance and planning process variables are scope of operations (K)
and the need to coordinate technology (L). Both variables represent different features of
the services and activities of the department.
One very surprising result here is the consistently low correlations for the external en-
vironmental variables in table 1. In this case, none of the three external variables, each with
numerous items, appears to have an effect on the strategic planning process or perform-
ance. This is also true for the associations between individual questions comprising the ex-
ternal variables and the process and performance variables. This is contrary to findings from
research on strategic planning and management in the private sector, and it may indicate
that Milwaukee’s departments are paying more attention to their internal environments than
their external environments during planning, which is a relatively new procedure for them.
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 511
Once departments become more experienced with planning and it becomes more institu-
tionalized, they may use it more to manage their external environments. The weak or non-
existent relationships between the combined size and complexity variable (and the separate
variables) and any process variable is also surprising given the importance of this variable
in private sector research.
APPENDIX
VARIABLES AND INDEXES
Performance Indexes
(A) Difficulty with Planning: average of responses to seventeen items below; = .76;
= 1.44; = .55
1. How much difficulty do you encounter with strategic planning in the following
areas?
seventeen items represent different areas where planning may be difficult, e.g.,
communication, participation; five-point scale: (0) none, (2) some, (4) great deal
(B) Strategic and Managerial Capacity: average of responses to nine items below;
= .85; = 1.43; = .57
2. How does your strategic planning process impact your organization with respect
to the following?
nine items represent general managerial areas, e.g., coordination, communica-
tion, awareness of problems; five-point scale: (-2) highly negative, (0) none, (2)
highly positive
Process Indexes
(C) Comprehensiveness of Planning: total percent of yes responses to questions 3–7
plus all three activities circled in question 7; = .79; = .63; = .21; thirty-nine total
items
3. Do you use the following in strategic planning? (Please circle all that apply.)
five items represent areas of formalization, e.g., documents, written schedules,
preprinted forms: yes/no
4. Does your department develop written plans, either separate or as part of the
strategic plan, for each of the following areas? (Please circle all that apply.)
eight items represent areas where planning may occur, e.g., capital improvement,
technology: yes/no
5. Are plans relating to each of the following areas reviewed on a scheduled basis?
eight items represent same areas as in question 4: yes/no
6. What inputs and/or techniques are used in developing your plans? (Please circle
all that apply.)
ten items represent techniques such as forecasting, cost-benefit analysis, surveys:
yes/no
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 513
7. Please circle (M) if your department monitors, (F) if your department produces
forecasts, and (A) if your department develops assumptions with respect to each
area indicated.
eight items represent conditions such as government legislation, labor market,
media, technology; M (monitor), F (develop forecasts), A (develop assumptions);
all three circled
(D) Extent Monitoring: average of responses to seven items in questions 8–10; = .84;
= 3.96; = .72 (also relevant to dimension of uncertainty and perceptions)
8. To what extent does the department monitor the following items to evaluate its
performance or effectiveness?
five items represent monitoring areas, e.g., performance, workload, efficiency;
five-point scale: (1) not at all, (3) somewhat, (5) to a great extent
10. To what extent do employees and managers have the training or expertise to
properly monitor the department’s performance and effectiveness?
five-point scale: (1) very little, (3) some, (5) great deal
(G) Internal Centralization: measured as the average of the following for questions
11–14: [(item c / item d) + (item c / item f)] * item c; = 13.97; = 4.3
Questions 11–14 have the same eight items and possible responses; eight items
represent different stakeholder groups such as council, mayor’s office, employees,
client groups; five-point scale: (0) none, (2) some, (4) extensive
11. To what extent are the following groups involved with triggering awareness of
issues that can significantly affect departmental operations (called strategic
issues) and consideration and elaboration of these issues?
12. To what extent are the following groups involved with generating policies,
programs, or services aimed at resolving strategic issues?
13. To what extent are the following groups involved with evaluating and choosing
strategic proposals?
514 Journal of Public Administration Research and Theory
14. To what extent are the following groups involved with monitoring the implemen-
tation of the strategic plan?
15. In your opinion, to what extent does your department have a clear understanding
of the following?
three items represent relationship between services and objectives, objectives and
mission, validity of measurement; five-point scale: (1) not at all, (3) somewhat,
(5) to a great extent
16. To what extent can your department’s program objectives be quantified and
measured?
five-point scale: (1) very few, (3) some, (5) most
Calculated (Z-score average) from three components obtained independent from the
survey:
1. number of employees
2. geographic dispersion in delivery of services: 1 = yes; 2 = no
3a. number of levels of management; 3b. average number of sections in each level
17. Relative to other departments within the city, how broad or comprehensive is
your departmental mission?
five-point scale: (1) very narrow, (3) about equal, (5) very broad
18. Relative to other departments within the city, how many different programs or
services does your department implement or administer?
five-point scale: (1) very few, (3) about equal, (5) many
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 515
(L) Need to Coordinate Technology: average response to five items in questions 19–22;
= .68; = 3.0; = 1.05
19. To what extent must your department coordinate with or is your department
dependent on the following to achieve its objectives or departmental mission?
two items (broad mission, number of programs and services); five-point scale:
(1) very little, (3) some, (5) great deal
20. How interdependent are the services in your department? In other words, to what
extent must departmental services be coordinated?
five-point scale: (1) very little, (3) some, (5) great deal
21. To what extent are the services delivered to clients or constituents by the depart-
ment organized sequentially (e.g., one service cannot be delivered to a client
until a prior one is implemented)?
five-point scale: (1) very little, (3) some, (5) great deal
22. To what extent are the services delivered to clients or constituents by the depart-
ment organized by case (e.g., case management in health or welfare services)?
five-point scale: (1) very little, (3) some, (5) most
(M) Routine and Structured Processes: average response to questions 23–24; = .92;
= 2.1; = 1.02
23. To what extent are the work and duties performed by the employees within your
department routinized or performed regularly?
five-point scale: (1) very few, (3) some, (5) most
24. To what extent are the work activities and duties performed by employees within
your department codified or standardized?
five-point scale: (1) very few, (3) some, (5) most
(N) Change Culture and Strategic Planning Training: average of five items in ques-
tions 23–24; = .43; = 3.0; = .59
25. To what extent have your department’s managers and supervisors had training or
exposure to the following concepts and processes through education, past experi-
ence, or attendance at professional meetings?
four items represent different technical areas, e.g., strategic planning, perform-
ance measurement; five-point scale: (1) few, (3) some, (5) all
26. In your opinion, how easy is it to get employees within your department to do
the following (assuming that it does not increase the number of tasks they per-
form or their workload)?
516 Journal of Public Administration Research and Theory
five-point scale: (1) very easy, (3) moderate, (5) very hard (direction of measures
is reversed)
27. If the department head or chief administrator is the first level of management in
your department, what are the titles of managers at each level along the longest
chain of command?
28. At what levels of management are the majority of the following decisions made?
six items represent different decisions, e.g., workload targets, objectives, mission
29. To what extent has your department experienced any of the following changes in
the past five years?
seven items represent different types of change, e.g., employee turnover, major
policies, technology use; five-point scale: (1) none, (3) some, (5) great deal
30. To what extent do the following groups agree with the department’s mission and
established programmatic objectives? (direction of measures is reversed from
what is given below)
four items represent different stakeholder groups, e.g., elected officials, employ-
ees, clients; five-point scale: (1) not at all, (3) somewhat, (5) to a great extent
32. What is the strength of the opinions of the following groups (either positive or
negative) regarding your department, its services, its objectives, or its mission?
four items, same as in question 30; five-point scale: (1) very weak, (3) moderate,
(5) very strong
33. For Cabinet Departments Only: Which of these groups have a major influence
on the following areas (A–H)? (Check all groups that apply.)
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 517
seven areas + five groups = thirty-five cells; areas include objectives, mission,
budget priorities; groups include mayor’s office, council, unions
34. What has been the effect of the following external conditions on the ability of
your department to meet program objectives in the past five years?
fifteen items represent conditions such as legislation, resources from other
governments, media, economy; five-point scale: (–2) very adverse, (0) neutral,
(2) very favorable
REFERENCES
Andrews, Kenneth R. 1980. The concept of corporate strategy, 2d ed. Homewood, Ill.: Irwin.
Ansoff, Igor H. 1979. Strategic management. New York: John Wiley.
Benson, Deana, James Gultry, Steve Kreklow, David Metz, and Stephen Agostini. 1995. Performance
budgeting: The Milwaukee experience. Paper presented at the Annual Meeting of the Association
of Public Policy Analysis and Management.
Berry, Frances Stokes, and Bart Wechsler. 1995. State agencies’ experiences with strategic planning:
Findings from a national survey. Public Administration Review 55, no. 2:159–68.
Boal, Kimberly B., and John M. Bryson. 1987. Representation testing and policy implications of
planning process. Strategic Management Journal 8, no. 3:211–31.
Boston, Jonathan, and June Pallot. 1997. Linking strategy and performance: Developments in the New
Zealand public sector. Journal of Policy Analysis and Management 16, no. 3:382– 404.
Boulton, William R., William M. Lindsay, Stephen G. Franklin, and Leslie R. Rue. 1982. Strategic
planning: Determining the impact of environmental characteristics and uncertainty. Academy of
Management Journal 25, no. 3:500–9.
Bourgeois, L. J., III. 1980. Strategy and environment: A conceptual integration. Academy of Management
Review 5, no. 1:25–39.
Bozeman, Barry, and Stuart Bretschneider. 1994. The “publicness puzzle” in organization theory: A test
of alternative explanations of differences between public and private organizations. Journal of
Public Administration Research and Theory 4, no. 2:197–223.
Bryson, John M. 1995. Strategic planning for public and nonprofit organizations, 2d ed. San Francisco:
Jossey-Bass.
Bryson, John M., and Philip Bromiley. 1993. Critical factors affecting the planning and implementation
of major projects. Strategic Management Journal 14, no. 5:319–37.
Bryson, John M., Philip Bromiley, and Yoon Soo Jung. 1990. Influences of context and process on
project planning success. Journal of Planning Education and Research 9, no. 3:183–95.
Bryson, John M., and William D. Roering. 1987. Applying private-sector strategic planning in the public
sector. American Planning Association Journal 53, no. 1:9–22.
Castrogiovanni, Gary J. 1991. Environmental munificence: A theoretical assessment. Academy of
Management Review 16, no. 3:542–65.
Chakravarthy, Bala S. 1987. On tailoring a strategic planning system to its context: Some empirical
evidence. Strategic Management Journal 8, no. 6:517–34.
Child, John S. 1972. Organizational structure, environment, and performance. Sociology 6, no. 1:1–22.
Chandler, Alfred D. 1962. Strategy and structure: Chapters in the history of the industrial enterprise.
Cambridge: MIT Press.
Cyert, Richard M., and James G. March. 1963. A behavioral theory of the firm. Englewood Cliffs, N.J.:
Prentice-Hall.
518 Journal of Public Administration Research and Theory
Deyle, Robert E. 1994. Conflict, uncertainty, and the role of planning and analysis in public policy
innovation. Policy Studies Journal 22, no. 3:457–73.
Donaldson, Lex. 1996. The normal science of structural contingency theory. In Handbook of
organization studies, edited by Clegg et al., 57–76. Thousand Oaks, Calif.: Sage.
Fredrickson, James W. 1984. The comprehensiveness of strategic decision processes: Extensions,
observation, future directions. Academy of Management Journal 27, no. 5:445–66.
Fredrickson, James W., and Anthony L. Iaquinto. 1989. Inertia and creeping rationality in strategic
decision process. Academy of Management Journal 32, no. 4:516– 42.
Fredrickson, James W., and Terrence R. Mitchell. 1984. Strategic decision processes:
Comprehensiveness and performance in an industry with stable environments. Academy of
Management Journal 27, no. 3:399– 423.
Goll, Irene, and Abdul M. A. Rasheed. 1997. Rational decision-making and firm performance: The
moderating role of environment. Strategic Management Journal 18, no. 7:583–91.
Grinyer, P. H., S. Al-Bazzaz, and Masoud Yasai-Ardedani. 1986. Towards a contingency theory of
corporate planning: Findings in 48 U.K. companies. Strategic Management Journal 7, no. 1:3–28.
Harold, D. M. 1972. Long range planning and organizational performance. Academy of Management
Review 15, no. 1:92–102.
Hendrick, Rebecca. 2002. Comprehensive management and budgeting reform in local government: The
case of Milwaukee. Public Performance and Management Review 23, no. 3:312–37.
Hickson, David J., D. C. Wilson, D. Cray, G. R. Mallory, and R. J. Butler. 1986. Top decisions: Strategic
decision making in organizations. San Francisco: Jossey-Bass.
Jauch, Lawrence R., and Kenneth L. Kraft. 1996. Strategic management of uncertainty. Academy of
Management Review 11, no. 4:777–90.
Jones, R. E., L. W. Jacobs, and W. Van’t Spijker. 1992. Strategic decision processes in international
firms. Management International Review 32, no. 1:219–36.
Kinney, Anne Spray. 1995a. Interview, Director of Administration, City of Milwaukee, 24 January.
———. 1995b. Mission, management, and service delivery: Integrating strategic planning and
budgeting in Milwaukee. Government Finance Review 11, no. 5:7–11.
Kissler, Gerald R., Karmen N. Fore, Willow S. Jacobson, William P. Kittredge, and Scott L. Stewart.
1998. State strategic planning: Suggestions from the Oregon experience. Public Administration
Review 58, no. 4:353–59.
Kreklow, Stephen. 1999. Interview by author. Milwaukee, Wisc. 7 April.
Kukalis, Sal. 1991. Determinants of strategic planning systems in large organizations. Journal of
Management Studies 28, no. 2:143–60.
Lan, Z., and Hal G. Rainey. 1992. Goals, rules, and effectiveness in public, private, and hybrid
organizations: More evidence on frequent assertions about differences. Journal of Public
Administration Research and Theory 2, no. 1:5–28.
Lindsay, William M., and Lesley W. Rue. 1980. Impact of the organizational environment on the long-
range planning process: A contingency view. Academy of Management Journal 23, no. 3:385– 404.
McArthur, A. W., and P. C. Nystrom. 1991. Environmental dynamism, complexity, and munificence:
Moderators of strategy–performance relationships. Journal of Business Research 23, no.
12:349–61.
Methe, David T., and James L. Perry. 1989. Incremental approaches to strategic management. In
Handbook of strategic management, edited by J. Rabin, G. Miller, and W. B. Hildreth, 35–53. New
York: Marcel Dekker.
Miller, C. Chet, and Laura B. Cardinal. 1994. Strategic planning and firm performance: Synthesis of
more than two decades of research. Academy of Management Journal 37, no. 6:1649–65.
Miller, Susan J., David J. Hickson, and David C. Wilson. 1996. Decision-Making in Organizations. In
Handbook of Organization Studies, edited by Stewart Clegg, Cynthia Hardy, and Walter R. Nord,
293–312. Thousand Oaks, Calif.: Sage.
Mintzberg, Henry. 1973. Strategy making in three modes. California Management Review 16, no.
1:44–53.
———. 1979. The structuring of organizations. Englewood Cliffs, N.J.: Prentice-Hall.
Hendrick Strategic Planning Environment, Process, and Performance in Public Agencies 519
Nutt, Paul C. 1986. Tactics of Implementation. Academy of Management Journal, 29, no. 2:230261.
Nutt, Paul C., and Robert W. Backoff. 1987. A strategic management process for public sector and third-
sector organizations. American Planning Association Journal 53, no. 1:44–57.
———. 1993. Organizational publicness and its implications for strategic management. Journal of
Public Administration Research and Theory 3, no. 2:209–31.
———. 1995. Strategy for public and third-sector organizations. Journal of Public Administration
Research and Theory 5, no. 2:189–211.
Papadakis, Vassilis M., Spyros Lioukas, and David Chambers. 1998. Strategic decision-making process:
The role of management and context. Strategic Management Journal 19, no. 2:115– 47.
Pearce, John A., Elizabeth Freeman, and Richard Robinson. 1987. The tenuous link between formal
strategic planning and financial performance. Academy of Management Review 12, no. 4:658–75.
Perry, James L., and Hal G. Rainey. 1988. The public–private distinction in organizational theory:
Critique and research strategy. Academy of Management Review 13, no. 2:182–201.
Rainey, Hal G. 1983. Public agencies and private firms: Incentive structures, goals, and individual roles.
Administration and Society 15, no. 2:207– 42.
Rainey, Hal G., and Barry Bozeman. 2000. Comparing public and private organizations: Empirical research
and the power of a priori. Journal of Public Administration Research and Theory 10, no. 2:447–69.
Rainey, Hal G., S. Pandey, and Barry Bozeman. 1995. Research note: Public and private managers’
perceptions of red tape. Public Administration Review 55, no. 6:567–74.
Riemer, David. 1997. Interview, Director of Administration, City of Milwaukee, July 9.
Ring, Peter Smith. 1989. The environment and strategic management. In Handbook of strategic
management, edited by J. Rabin, G. Miller, and W. B. Hildreth, 55–87. New York: Marcel Dekker.
Ring, Peter Smith, and James L. Perry. 1985. Strategic management in public and private organizations:
Implications of distinctive contexts and constraints. Academy of Management Review 19, no.
2:276–86.
Roberts, Nancy C. 1993. Limitations of strategic action in bureaus. In Public management: The state of
the art, edited by Barry Bozeman, 153–72. San Francisco: Jossey-Bass.
Roberts, Nancy C., and Linda Wargo. 1994. The dilemma of planning in large-scale public organizations:
The case of the US Navy. Journal of Public Administration Research and Theory 4, no. 4:469–91.
Rue, Leslie W. and Robert M. Fulmer. 1973. Is Long-Range Planning Profitable? Proceedings of the
Academy of Management, 66–73. Boston: Academy of Management.
Scott, W. Richard. 1998. Organizations: Rational, Natural, and Open Systems, 4th ed. Englewood Cliffs,
N.J: Prentice Hall.
Simon, Herbert A. 1969. The Sciences of the Artificial. Cambridge, MA: MIT Press.
Simpson, Kit. 1992. Strategic planning for public health: Cancer control in North Carolina. Evaluation
and Program Planning 15, no. 3:383–93.
Smith, Ken G., Martin J. Gannon, Curtis M. Grimm, and Terence R. Mitchell. 1988. Decision making
behavior in smaller entrepreneurial and larger professionally managed firms. Journal of Business
Venturing 3, no. 3:223–32.
Stone, Melissa Middleton, and Candida Greer Brush. 1996. Planning in ambiguous contexts: The
dilemma of meeting needs for commitment and demands for legitimacy. Strategic Management
Journal 17, no. 8:633–52.
Streib, Gregory. 1989. Strategic decision making in council–manager governments: A status report. The
Municipal Yearbook. Washington, D.C.: International City/County Management Association.
Thompson, James. 1967. Organizations in Action. New York: McGraw Hill.
Toft, Graham S. 1989. Synoptic (one best way) approaches to strategic management. In Handbook of
strategic management, edited by J. Rabin, G. Miller, and W. B. Hildreth, 3–33. New York: Marcel
Dekker.
Wheeland, Craig M. 1993. Citywide strategic planning: An evaluation of Rock Hill’s empowering the
vision. Public Administration Review 53, no. 1:65–72.
Yasai-Ardedani, Masoud, and Ralph S. Haug. 1997. Contextual determinants of strategic planning
processes. Journal of Management Studies 34, no. 5:729–67.
Yasai-Ardedani, Masoud, and Paul C. Nystrom. 1996. Designs for environmental scanning systems:
Tests of a contingency theory. Management Science 42, no. 1:187–204.