Does distinct formal strategic planning matter? An analysis of strategic management and perceived usefulness in Norwegian municipalities

Planning has for a long time been utilised in government. Strategic planning and management has been a core administrative doctrine in the new public management since the late 1970s. Strategic planning has since the 1980s been... [ view full abstract ]

Planning has for a long time been utilised in government. Strategic planning and management has been a core administrative doctrine in the new public management since the late 1970s. Strategic planning has since the 1980s been widely adopted, either by regulation or voluntarily, in public sector organisations. The practices and the impact of strategic planning and management in the public as well as in the private sector have nevertheless been contested. This paper studies how using ordinary municipal planning documents/plans as strategic plans or using unique strategy plans, moderated by degree of formal strategic planning, affects the (perceived) usefulness of strategic planning. Put differently: should municipalities conduct separate strategic planning or incorporate strategic planning/thinking in their ordinary planning processes and plans? This issue addresses core strategic management theory, but the issue is interesting and important also to planners and strategy practitioners. The study analyses survey and archival data from 173 of the 428 municipalities in Norway in 2016, with a response rate of 40 per cent, with multivariate analysis.