The implementation of strategic

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THE IMPLEMENTATION OF STRATEGIC MANAGEMENT IN LOCAL GOVERNMENTS. AN
INTERNATIONAL DELPHI STUDY.
Author(s): VICENTE PINA, LOURDES TORRES and ANA YETANO
Source: Public Administration Quarterly, Vol. 35, No. 4 (WINTER 2011), pp. 551-590
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THE IMPLEMENTATION OF STRATEGIC
MANAGEMENT IN LOCAL GOVERNMENTS. AN
INTERNATIONAL DELPHI STUDY.
VICENTE PINA
LOURDES TORRES
ANA YETANO
Universidad de Zaragoza, Spain
ABSTRACT
Strategic management in the public sector is a controversial
issue. Both supporters and detractors coincide in the difficulties of
introducing the changes that it involves. This paper analyzes the
different factors involved in the implementation process of strategic
management and how they affect the result of the implementation. We
study twelve local governments in Australia, Spain, Sweden and the
USA with acknowledged experience in strategic management. We find
that, although local governments state similar objectives, they are not
always consistent with the efforts carried out in the strategic
management implementation process. We also show that the behavior
of the personnel is a key aspect of the implementation process.
Keywords: Strategic Management, Local government,
Delphi
Acknowledgments: This study has been carried out with
the financial support of the Spanish National R&D Plan
through research project EC02010-17463 (ECON
FEDER).
INTRODUCTION
In recent decades, local governments have
introduced a wide range of techniques to improve their
management. The objectives pursued vary depending on
the initiatives, the implementers, the specific contexts and

552 PAQ WINTER 2011
the moment. Nevertheless, they have usually been to reduce
costs, to improve performance in terms of quality,
efficiency and effectiveness, to improve citizen satisfaction,
to become more responsible and accountable and to
improve citizen trust in government. In spite of the
criticisms about the suitability of some of these techniques
or the difficulties that they imply in practice, public sector
organizations are "obliged" to introduce new ways of
managing their resources as traditional managerial
processes seem to have serious shortcomings. Management
improvement has become a must as the environment has
become more competitive and uncertain (Naschold and
Daley, 1999).
This atmosphere of necessary change has
encouraged the implementation of performance
measurement (Bouckaert, 1993; OECD, 2005; Yang, 2007)
and strategic management systems (Vinzant and Vinzant,
1996b; Poister and Streib, 1999, 2005). Public
organizations, particularly local governments, have
embraced different management initiatives and municipal
managers have adopted recognized private sector
management tools (Chan, 2004), such as the Balanced
Scorecard (BSC), the Triple Bottom Line (TBL) and
Global Reporting Initiatives (GRI), in their quest to
introduce strategic management. Poister and Streib (1999,
2005) show the growing interest in strategic management in
the public sector, despite the difficultiesof implementing it
in the public arena. According to Chan (2004), in the USA
and Canada, most municipal governments have developed
measures to assess their key organizational areas such as
finances, customer satisfaction, operating efficiency and
employee performance.
This paper aims to analyze the different factors
involved in the implementation process of strategic
management and how they affect the result of the
implementation. We study the behavior of local

PAQ WINTER 2011 553
governments when implementing strategic management,
taking the BSC1 as a benchmark, and to what extent that
behavior explains the degree of alignment between local
governments' publicized objectives and the actual
configurations of their strategic management system. The
sample is made up of local governments with
acknowledged experience in strategic management in
Australia, Spain, Sweden and the USA. This study
contributes to a better understanding and planning of the
implementation of strategic management initiatives in local
governments.
The rest of the paper is structured as follows: in Section 2,
we introduce strategic management in the context of the
public sector; in Section 3, we present the theoretical
framework; Section 4 develops the methodology; Section 5
contains the analysis of the results and Section 6 the
discussion. Finally, we draw conclusions about the main
findings of our study.
STRATEGIC MANAGEMENT FRAMEWORK IN
THE PUBLIC SECTOR
In the eighties, New Public Management initiatives
drove the public sector in the direction of management.
Since then, the focus on securing organizational change as
opposed to organizational maintenance has become more
important in the public sector (Ferlie, 1992), and public
1
As there are many ways to introduce strategic management, we have used the
BSC as a benchmark to compare initiatives with similar characteristics. We
chose the BSC because it was designed to respond to the need for integrated
management systems and because it is considered a useful tool for
implementing strategic management (Kaplan and Norton, 1996, 2005, 2007).
For an extended explanation of the model and its evolution from a performance
measurement system to a strategic management framework, see among others
Kaplan and Norton (1996, 2005,2007).

554 PAQ WINTER 2011
sector reforms have increased awareness of the importance
of strategic choices about how to provide public services.
The need for strategic management practices in the public
sector grew when public organizations moved from
relatively stable environments into more rapidly changing
and competitive ones that are characterized by resource
scarcity (Montanari and Bracker, 1986). Ansoff and Hayes
(1976) argued that strategic management was needed in
environments where new patterns of power and influence
were emerging, where basic norms and values were being
challenged and where the legitimacy and social utility of
the organizations was being redefined.
Bracker (1980) defined strategic management as the
application of the concept of business strategy. For him,
strategic management involves the analysis of the internal
and external environment of an organization to maximize
the use of resources in relation with the organizational
objectives. For Ansoff (1972), strategic management is
concerned with establishing and maintaining a set of
relationships between the organization and the environment
which enable it to pursue its objectives, are consistent with
the organizational capabilities and fulfill the demands of
the environment. Strategic management, in the public
sector, encompasses the whole process of developing and
managing a strategic agenda (Poister and Streib, 2005).
Ansoff, Declerck and Hayes (1976) argued that
strategic management was a response to the shortcomings
of strategic planning which produced plans but not actions
or visible changes. Comparing strategic planning with "the
symptoms of a foreign organ transplant", they claimed that
an organization focused exclusively on strategic planning
will neglect the potentially more important need to change
its internal culture. Strategic management is a behavioral
phenomenon that involves the managers, the structure, the
process and the total management system of planning
implementation and control (Davous and Deas, 1976).

PAQ WINTER 2011 555
For Vinzant and Vinzant (1996a; 1996b), strategic
management in the public sector involves profound
changes in organizational cultures and its successful
implementation requires time, resources, strong leadership
and commitment. But, strategic management is not without
controversy as there are authors that doubt its applicability
to the public sector environment. In general, the adoption
of private sector models has been viewed with much
skepticism in the literature on public administration and
public management (Parker and Subramanium, 1964;
Ranson and Steward, 1994; Boyne, 1996).
THEORETICAL FRAMEWORK
Institutional theory has been extensively used by
academics to explain the adoption of managerial
accounting innovations and voluntary disclosures (Ribeiro
and Scapens, 2006). Institutionalism describes the adoption
of reforms through isomorphic processes that explain the
homogeneity of organizational structures within
organizational fields (DiMaggio and Powell, 1983).
Similarly, resource dependence theorists have also stated
that organizational fields can influence the actions of an
organization, both through networks and dependency
relations (Pfefferand Salancik, 1978).
Both theories view the implementation of strategic
management as a response to the pressures from the
organizational field. These theories consider organizational
fields as contexts imposing requirements and/or constraints
on organizations (Scott, 2008). They claim that if
organizations operating within a given context want to be
successful, they are obliged to conform to the dictates of
their institutional environments (see DiMaggio and Powell,
1983; Powell, 1988). As such, performance information
systems have been seen as attractive reforms by elected
officials who value their symbolic benefits, but who are

556 PAQ WINTER 2011
reluctant to undertake important changes that could
dismantle the traditional civil service (Moynihan, 2009).
These theories have overestimated of the role of the taken
for-granted rules in an organizational field (Oliver, 1991;
Beckert, 1999; Sandfort, 2003; Cooney, 2007).
However, Scott (2008) argues that corrections and
refinements to both theories have recognized, in addition to
the influence of organizational fields, the possibility of
choice and of agency behaviors among actors -both
individuals and organizations. Attention turned to
analyzing the role of agency in organization-environment
relations -some examples are DiMaggio (1988), Oliver
(1991), Scott (1995), Kostova et al. (2008). Several authors
(among others, Oliver, 1988; Oliver, 1991; Barman, 2002)
have characterized organizations as strategic actors
responding to changing conditions.
Oliver (1991) established different types of
organizational behavior or strategy -acquiescence, the most
likely option, compromise, avoidance, defiance and
manipulation- from the analysis of five factors: cause,
constituents, content, control and context. These strategies
are a result of combining institutional and resource
dependence theories. Defiance implies rejecting the change
and manipulation is the purposeful and opportunistic
attempt to influence institutional pressures to change
(Nabatchi, 2007). These two strategies would not be
expected in the implementation of a voluntary reform. So,
in the implementation of strategic management, local
government strategies will range between avoidance and
acquiescence.
There is a growing body of literature that has
developed the theoretical perspectives and methodologies
to incorporate a multilevel analysis of the agency behavior
of organizations and individuals (Barley and Tolbert, 1997;
Sillince, Harindranath, and Harvey, 2001). Cooney (2007)
shows that institutionalization is a highly contentious

PAQ WINTER 2011 557
process involving actors who engage, reject and,
sometimes, transform the reform. In short, societal actors
may have their own strategy. Burns and Scapens (2000)
emphasize that, although institutions shape behavior, they
are themselves the outcome of the actions of the individual
members of the organization. Therefore, management
changes must also be understood in terms of the behavior
of individuals: their strategic behavior should not be
underestimated. Organizations would be more successful if
they dealt with their members' strategies by orienting
individuals' strategic choices towards acquiescence.
METHODOLOGY
The Delphi method is a systematic approach for
gathering experts' opinions. Henessy and Hicks (2003)
define the Delphi method as "a multiple interaction survey
technique that enables anonymous, systematic refinement
of expert opinion, with the aim of arriving at a combined or
consensual position". It is a highly recommended technique
to study areas where little is known about the topic
(Hennessy and Hicks, 2003). The value of the Delphi
method lies in its ability to generate ideas, both those that
evoke consensus and those that do not. The Delphi method
has been widely used in the private and public sectors in
different areas with a variety of modifications and
interpretations (Powell, 2003). According to Keeney et al.
(2001), this technique has gained popularity in a great
number of disciplines.
The method comprises a series of questionnaires
sent to a pre-selected group of experts. These
questionnaires are designed to elicit and develop individual
responses to the problems posed and to enable the experts
to refine their views as the group's work progresses. The
essential elements of the Delphi method are an expert
panel, a series of questionnaires, the search for consensus,

558 PAQ WINTER 2011
anonymous participants and feedback between phases.
Typically, three rounds are carried out (Powell, 2003). The
moderator can stop the process when the criteria for
consensus are achieved, when results become repetitive or
when an impasse is reached. Because the number of
respondents is usually small, Delphi does not (and is not
intended to) produce statistically significant results. So, the
results provided by any panel do not predict the response of
a larger population or even of a different Delphi panel.
In this study, the application of the Delphi method
has been divided into two phases. The first phase was the
design of the Delphi application in which we selected the
panel of experts to be interviewed2, carried out the
preliminary interviews and designed the questionnaire
based on the interviewees' answers. In the second phase,
we applied the Delphi. First, the interviewees answered the
first round of questions and we analyzed their responses.
Then, we sent the second round of questions to those who
answered the first round and analyzed the second round
answers and the final results. As the results did not change
much from the first to the second round and a sharp
decrease in participation was observed, we considered
further rounds unnecessary. In fact, according to the
literature, almost all the improvements towards statistical
reliability take place between the first and second rounds
(Hennessy and Hicks, 2003).
The experts, for the preliminary interviews, were
selected from among implementers of strategic
management systems3. They were from Fairfax County and
Prince William County, in the USA, and from San Cugat
del Valles (hereafter referred to as San Cugat), in Spain. At
the time, Fairfax County was considered one of the best
American counties in the area of management (Ingraham,
2
Three local governments were selected for carrying a pilot study.
3
The experts allowed us to indicate their position and the local government for
which they work.

PAQ WINTER 2011 559
2003). Prince William County has been used in case studies
of strategic management implementation in US public
administration (Bernstein, 2001) and San Cugat is one of
the most dynamic and innovative Spanish local
governments and one of the first implementers of the BSC
in Spain. The purpose of these interviews was to reach an
agreement about the main areas of concern in the
implementation and the benefits of Strategic Management
Systems (SMS). We took the elements of the BSC as a
framework: mission, vision, values, strategic plan and
perspectives for the performance measures. The results of
the interviews were used to design the questionnaire for the
next round4. The questionnaires were sent to the
department in charge of the SMS5.
In the first round, 23 local government
implementers of strategic management systems were
invited to participate in the Delphi study. The initial sample
consisted of Brisbane, Holdfast Bay and Melbourne, in
Australia, Kingston and North Bay, in Canada, Mataro,
Mostoles and San Cugat, in Spain, Austin, Charlotte, Chula
Vista, Fairfax County, Maricopa, Milwaukee, Multnomah
County, San Jose, Scottsdale and Tucson, in the USA,
Plymouth, in the UK and Gothenburg, Tierp, Norrtalje and
Lulea, in Sweden.
4
For the design of the questionnaire, we also had the cooperation of Blue
Wooldridge and Carolyn Funk at the Virginia Commonwealth University,
USA.
5
The interviews were answered by managers or coordinators of the following
areas or departments: the area of Corporate Services in Holdfast Bay, the area
of Sustainable City Research (Dpt. of Corporate Services) in Melbourne, the
area of Management Accounting and Cost in San Cugat, the department of
Planning, Quality and Organization in Mataro, the Department of Budgeting
and Management in Mostoles, the department of Finance and Administrative
Services in Austin, the department of Budget and Evaluation in Charlotte, the
area of Management for Results in Maricopa, the area of Public Outreach (Dpt
of City Manager) in San Jose, the department of Human Resources in
Scottsdale, the department of Budget and Research in Tucson, the area of
Balanced Scorecard (Dpt of Human Resources) in Lulea.

560 PAQ WINTER 2011
All of them were distinguished in the
implementation of strategic management systems. Some of
them have received awards for the soundness of their
systems. This is the case of Brisbane and Charlotte, which
received the Balanced Scorecard Hall of Fame Award, and
Austin, San Jose and Chula Vista which have been
highlighted by the International City/County Management
Association, Center for Performance Measurement (ICMA,
2004). Others have participated actively in initiatives to
develop performance indicators. This is the case of
Melbourne, which collaborates with the Global Reporting
Initiative (GRI), Charlotte with the North Carolina Local
Government Performance Measurement Project, Kingston
and North Bay with Ontario projects of reporting systems,
Maricopa with the Government Performance Project of The
Maxwell School-Campbell Public Affairs Institute.
Plymouth was considered a council that made good
progress in addressing the corporate weaknesses identified
through its corporate assessment in 2002 (Audit
Commission, 2004). Finally, some of them, such as
Multnomah County, Prince William and Tucson (Bernstein,
2001)6, Milwaukee (Hendrick, 2000), Scottsdale (Clifford,
1998) and Lulea (SKL- Sveriges Kommuner och Landsting
-Swedish Association of Local Authorities and Regions) ,
have been used in case studies of strategic management
implementation.
In the second round, we re-sent the questionnaire to
the first round respondents together with the results of the
first round. Only 12 local governments answered the
second round: Holdfast Bay and Melbourne in Australia,
6
Prince William County uses performance measures to monitor strategic
initiatives, to guide the budget process and to allocate resources. Tucson has
been monitoring performance measures for so long that, during the 1990s, the
City had to reinvent how it monitored performance in order to focus attention
on the achievement of community-identified priorities (see Bernstein, 2001)
See http://www.skl.se

PAQ WINTER 2011 561
Mataro, Mostoles and San Cugat in Spain, Austin,
Charlotte, Maricopa, San Jose, Scottsdale and Tucson in
the USA, and Lulea in Sweden. These entities are small and
medium-sized local governments. They share common
features and may have a more homogeneous culture than
large local governments and central and regional
governments (Torres and Pina, 2002). Because no
noticeable differences between the answers to the first and
second round were found, no further rounds were carried
out. Only the answers of these twelve local governments
have been considered as results from the Delphi study since
they were the interviewees who completed the process.
We have also included, in Appendix A, some
additional information obtained in the interviews, useful to
better understand the answers of the experts and to give a
detailed view of the strategic management system of each
local government studied. This information includes the
year of implementation, the reasons for implementation,
who decided to implement the SMS, the perspectives of
each strategic management model, external channels of
strategic management communication and information
about strategic management externally communicated by
each local administration.
ANALYSIS OF RESULTS
Consensus or Lack Thereof
The global results of the Delphi study are shown in
the following tables, which group the items thematically. In
the first round, the interviewees were asked to score each
issue according to its contribution to the successful
development of their own strategic management system.
Column A collects the opinion of the interviewees about
both their experience in strategic management systems and
what can be expected from them. We consider that there is
consensus about the importance or non-importance of each

562 PAQ WINTER 2011
issue when the mean value of answers is in the first or the
last third of the range. For example, in questions with two
options (zero and one), the local governments had reached
consensus when the score is between zero and 0.33 or
between 0.66 and one. In questions with five options (one
to five), they had reached consensus when the mean value
of answers is between one and 2.33 or between 3.66 and
five. The answers to the first round in which a consensus
had not been reached (with a mean value between 0.33 and
0.66 or between 2.33 and 3.66) were sent to interviewees to
be considered again.
The issues in the second round, those in which there
was no consensus in the first round, could be interpreted as
those whose importance and contribution to the successful
implementation of strategic management systems is not
clear for the local government implementers interviewed.
Finally, consensus was achieved in some questions in the
second round (column B). The absence of consensus
enables us to identify where the differences in the
implementation process lie. The synthesis of the final
results of the Delphi analysis is as follows.
To what extent do strategic management systems
follow the BSC model?The strategic management systems
of local governments share the same characteristics as the
BSC. Nevertheless, they are adapted to each organization's
features. There is agreement about the main features of the
strategic management system structure (Table 1): it should
be based on the mission, on the link between management
systems and strategy and on the use of perspectives in the
SMS emulating Kaplan and Norton (1992) model. The
perspectives developed by the different local governments
show various approaches to the implementation process
(Appendix A).

PAQ WINTER 2011 563
San Cugat uses the four Kaplan and Norton
perspectives: Customer, Financial health, Internal processes
and Growth and learning. Charlotte has defined four
perspectives of its own: Serve the customer, Run the
business, Manage resources and Develop employees. Lulea
also has four: Personnel, Development, Customer and
Private sector and society. Holdfast Bay and Melbourne,
Mataro and San Jose only have three perspectives. Other
local governments, for example, Austin uses the
departments as perspectives. Maricopa and Tucson define
the main lines of action as perspectives, while Mostoles,
the last to introduce the model, develops them around the
budgetary items.
Table 1
Main characteristics of the SMS
TO WHAT EXTENT DOES THE SMS FOLLOW THE BSC
MODEL? (Yes=l, No=0) A B
Is the SMS based on your organization's mission? 0.92
Has the local government linked its SMS to its strategies? 0.75
Has the local government grouped its performance measures
into different categories (e.g. personnel, financial, process and
customer)? 0.83
Do you consider that your organization's SMS fits the BSC
definition? 0.67
A. First round, B. Second round
The objectives of strategic management
implementation. From the answers obtained in the
interviews, nine principal objectives of strategic
management implementation were extracted (Table 2).
These objectives represent the main advantages that local
governments seek from the implementation of strategic
management and summarize the main concerns of local
governments nowadays. The objective with the highest
score is the setting of meaningful goals, showing that it is
the main concern of public administrations in order to
manage by objectives.

564 PAQ WINTER 2011
The next highest scores refer to the improvement of
efficiency and effectiveness, improvement of customer
satisfaction and strategic planning. Cost reduction and
improve accountability were the objectives which aroused
the least interest. As the human factor is the main cost in
the provision of local services and cost reduction is not
among the main objectives, it would seem that the
implementation of strategic management techniques does
not seek redundancies in the public sector. Although
improve accountability is not considered an important
objective by implementers in this survey, it should be
highlighted that eight out of the twelve local governments
interviewed make their strategic plans, performance reports
and performance indicators available to the public
(Appendix A).
Table 2
Objectives of implementing SMS
TO WHAT EXTENT DOES EACH OF THE FOLLOWING
OBJECTIVES INFLUENCE THE DECISION TO
IMPLEMENT A SMS? (response choices: 1= very great extent
2= great extent, 3= moderate extent, 4= some extent, 5= not at
all)
A B
A) Cost reduction 3.00 2.75
B) Improvement in efficiency and effectiveness 1.92
C) Improvement in customer satisfaction 1.92
D) Improvement in the decision-making process 2.08
E) Alignment of the organization to its mission 2.08
F) Setting of meaningful goals 1.83
G) Strategic planning 1.92
H) Better resource allocation 2.17
I) Improve accountability 2.42 2.42
The implementation process. Strategic management
systems are initiated by the politicians or managers of the
area or department which is delivering the service
(Appendix A). Appendix A shows that the most common
reasons for the implementation of strategic management
were to experiment with the model (Austin, Charlotte, San

PAQ WINTER 2011 565
Jose) and the experience of chief executives in other public
organizations (San Cugat, Mataro, Mostoles, Maricopa,
Lulea). Other reasons given are that it fits well into the
organizational culture (Holdfast Bay), external mandate
(Melbourne) or to better understand the performance of the
organization (Scottsdale).
a) Prior situation. There is no coincidence about what has
been and what should be the recommended starting point
for the implementation of strategic management. As can be
seen in Table 3, there is no agreement about the
contribution of previous experience in organizational
reform initiatives before the implementation.
Table 3
Scope and prior situation
A B
What is the scope of implementation? (comprehensive =1,
partial-0) 0.83
Prior Situation
Before implementing the SMS, was there any management
improvement? (yes=l, no=0) 0.50 0.50
The existence of other management improvement
initiatives influenced the decision to implement the
SMS:1= Strongly agree, 2=Agree, 3= Undecided, 4=
Disagree, 5= Strongly disagree 2.67 3
Did you make an initial analysis of the local government
strengths, weaknesses, opportunities and threats before
implementing the new model? (yes=l, no=0) 0.50 0.50
b) Personnel. The answers of implemented show that the
level of participation of the staff is different in each case
(Table 4). The implementers do not agree that the
involvement of personnel is essential for the successful
implementation of strategic management. Notwithstanding,
there is a strong consensus about the convenience of
implementing training programs in order to reduce the
resistance of staff and to make the implementation process
easier.

PAQ WINTER 2011
Table 4
Personnel
A B
We have informed all our employees about how the SMS will
affect their work (l=Strongly Agree, 2=Agree, 3=Undecided,
4=Disagree, 5=Strongly Disagree) 2.67 3.00
The employees have participated in the design of the
SMS:(l=Strongly Agree, 2=Agree, 3=Undecided, 4=Disagree,
5=Strongly Disagree) 3.00 3.08
The local government provided training for employees in the
new system: (yes=l, No= 0) 0.75
During the past 3 years, has your local government arranged
training to help to accomplish the following tasks? (yes=l,
No= 0)
A) Set performance goals 0.67
B) Develop performance measures 0.75
C) Adopt decisions based on performance information 0.33
c) Leadership and compromise. Managers play a more
crucial role than politicians in the implementation of
strategic management systems (Table 5). These results
reflect one of the most important reasons given for the
implementation of strategic management, namely, the
experience of chief executives (see Appendix A). The low
influence of improve accountability in the decision to
implement a SMS (see Table 2) is consistent with the lack
of consensus about the role of elected officials in strategic
management implementation.
d) External assistance. It seems that the majority of local
governments had some kind of external assistance (Table
5). As the local government budget for the performance
management system project is low, the use of this kind of
assistance is limited, although it is much appreciated.
e) Resources. All the local governments interviewed have
spent less than 5% of their budget on this project and half
have funded theproject withouta specific budget (Table 5).
If we take into account that they are medium-size local

PAQ WINTER 2011 567
governments, we can conclude that strategic management
will be an affordable initiative in almost all cases.
Table 5
Other implementation aspects
Leadership and compromise A B
Managers exert strong leadership to guide the changes taking
place in the organization: (l=Strongly Agree, 2=Agree,
3=Undecided, 4=Disagree, 5=Strongly Disagree) 2.08
To what extent does top management demonstrate commitment
to the new SMS? (1 Very great extent, 2 Great extent, 3
Medium extent, 4 Small extent, 5 Not) 2.42 2.33
To what extent have elected officials supported the
implementation of a new SMS? (1 Very great extent, 2 Great
extent, 3 Medium extent, 4 Small extent, 5 Not) 2.58 2.92
External Assistants
Did the local government use the help of any external
assistance?(yes=l, No= 0) 0.67
We found their help: (l=Very useful, 2=useful, 3=Undecided,
4=Useless, 5=Absolutely Useless) 1.88
Resources
The local government has specific budgetary resources for
SMS (yes=l, No= 0) 0.58 0.58
What percentage of the total local government budget is
dedicated to the SMS project: (1= Between 0%- 5%,
2=Between 6%-10%, 3=Between 11%-15%, 4=Between 16%
and 20%, 5=More than 21%) 1.00
f) Sense of urgency and priority of the initiative. Table 6
shows that there is no consensus about urgency and priority
in the implementation of strategic management in the local
governments interviewed.

PAQ WINTER 2011
Table 6
Sense of urgency and priority of the initiative
A B
Most people in the local government feel a sense of urgency foi
successful implementation of the SMS: (l=Strongly Agree,
2=Agree, 3=Undecided, 4=Disagree, 5=Strongly Disagree) 3.00 2.50
The performance management system is considered the main
management improvement priority (l=Strongly Agree,
2=Agree, 3=Undecided, 4=Disagree, 5=Strongly Disagree) 3.5 2.82
The adaptation of local government organization to
the new management system, a) Mission agreement. Some
groups were suggested as potential stakeholders in strategic
management initiatives in the interview phase. As can be
seen in Table 7, there was agreement on the involvement of
elected officials and senior managers in the setting of the
mission statement as well as on the non-involvement of
unions, employees, governmental agencies and state
auditors. The opinion of middle managers and citizens was
only taken into account in some cases. These results are
consistent with a top-down implementation process and
with a modest involvement of staff in strategic management
developments.
b) Organizational culture. The results show that the
implementation of strategic management does not
necessarily bring about structural changes in the
organization or in the behavior of the members of the
organization. These results show that some NPM initiatives
introduced into the public sector do not always seek
noticeable organizational changes but only the
enhancement of the image of the entity as well managed.

PAQ WINTER 2011
Table 7
Participation in the design of the model and Organizational
culture
HOW MUCH DID EACH OF THESE GROUPS
PARTICIPATE IN SHAPING THE MISSION OF THE
ORGANISATION? (Grade from: 1 very great participation, 2
great participation, 3 moderate participation, 4 small
participation, 5 No participation)
A B
A) Elected officials 1.92
B) Senior management 1.67
C) Middle management 2.83 2.75
D) Front-line employees 4.00
E) Unions 4.17
F) Citizens 3.58 4.17
G) State government agencies 4.50
H) State Auditor 4.75
Organizational culture
The SMS implemented has modified the behavior of the
organization's members:(l=Strongly Agree, 2=Agree,
3=Undecided, 4=Disagree, 5=Strongly Disagree) 2.92 2.92
The organization has changed its rules and procedures due to the
introduction of the new system:(l=Strongly Agree, 2=Agree,
3=Undecided, 4=Disagree, 5=Strongly Disagree) 2.75 2.75
c) Barriers to the implementation. The majority of scores
(see Table 8) have a value over three, which shows that the
obstacles listed have had a moderate or small effect on the
strategic management implementation and adaptation
process. It is worth highlighting that no one barrier has
been considered a crucial threat to the process. These
answers are consistent with the answers to previous
questions about the limited involvement of bureaucratic
staff, the implementation of training programs and the top
down implementation process, as well as with the limited
depth of the changes brought about by the introduction of
strategic management.

PAQ WINTER 2011
Table 8
Barriers to the implementation
A B
How much did each of these common obstacles hinder youi
implementation (Response choices: 1= very great extent, 2=
great extent, 3= moderate extent, 4= some extent, 5= not at all)
A) Employee resistance to the change 3.00 3.17
B) The absence of an implementation schedule 4.08
C) Lack of resources 3.25 3.00
D) Lack of agreement between different stakeholders about the
organization's mission and vision 3.92
E) Lack of employee skills, abilities and knowledge 3.42 3.67
F) Inadequate support/commitment from top management 3.83
G) Inadequate support/commitment from elected officials 4.17
H) Lack of communication between different organization
levels 3.00 3.08
I) Incompatibility with organization culture 3.09 3.42
J) Incompatibility with other organization systems 3.55 3.83
K) Model complexity 3.36 3.42
L) Insufficient time to properly implement the project 3.3 3.09
d) The impact of the implementation. The opinions of
implementers show no consensus (Table 9) on the benefits
of the achievement of the strategic management objectives
included in Table 2. Only the setting of meaningful goals
seems to be reinforced by the implementation of strategic
management. With regard to what can be expected from the
implementation of strategic management systems,
implementers still expect improvements in the future in all
the items considered.

PAQ WINTER 2011
Table 9
The impact of the implementation
A B
Which results (and to what extent) have you seen from the
implementation? (Response choices: 1= very great extent, 2=
great extent, 3= moderate extent, 4= some extent, 5= not at all)
A) Cost reduction 3.9
B) Improvement in efficiency and effectiveness 3.27 3.27
C) Improvement in customer satisfaction 3.18 3.36
D) Improvement in the decision-making process 3.09 2.82
E) Alignment of the organization to its mission 2.73 2.42
F) Setting meaningful goals 2.64 2.27
G) Strategic planning 2.82 2.54
H) Better resource allocation 3.27 2.91
I) Improved accountability 2.91 2.91
EXPECTATIONS FOR THE FUTURE
Which results do you expect to see in the future?
First round (column A): We assign "0" when no results are
expected, and, "1" when improvements are expected. A B
A) Cost reduction 0.70
B) Improvement in efficiency and effectiveness 0.80
C) Improvement in customer satisfaction 0.80
D) Improvement in the decision making process 0.80
E) Alignment of the organization to its mission 0.80
F) Setting meaningful goals 0.80
G) Strategic planning 0.80
H) Better resource allocation 0.80
1) Improved accountability 0.90
e) Dissemination of Local Government information about
strategic management As can be seen in Appendix A, the
majority of local governments disclose performance
information such as strategic plans, performance reports,
performance indicators and annual reports, which means
that local governments also consider stakeholders as
primary users of strategic management information.
Although the improvement of accountability is not among
the objectives on which consensus was reached (see Table
2), the disclosure of strategic management information
through the Internet is a common practice which improves
the accountability of local governments. The disclosure of

572 PAQ WINTER 2011
this kind of information through the Internet is consistent
with the improvement of local government image that the
implementation of strategic management may produce.
Analysis of the Lack of Consensus
To analyze the lack of consensus, we have created
four indexes (see Table 10). The first, the "Objectives
index", measures the objectives that a local government
aims to achieve with the implementation. They are cost
reduction, improvement in efficiency and effectiveness,
improvement in customer satisfaction, improvement in the
decision-making process, alignment of the organization to
its mission, setting of meaningful goals, strategic planning,
better resource allocation and improvement in
accountability. The maximum value of the index is 18, we
considered "low" between 0 and 6, "medium" between 7
and 12 and "high" between 13 and 18. For each objective,
we consider 0 as "not important", 1 as "some or moderate
importance" and 2 as "important or very important".
The second, the "Implementation index", takes into
consideration the efforts made by the organization in the
implementation. It values the implementation section of the
questionnaire -initial analysis, vision and mission,
personnel, training, top management and leadership, the
existence of an implementation team, external assistance,
planning and timing, compatibility and sense of urgency.
This index has a maximum of 30 and the intervals were
scored from 0 to 10, "low" effort, from 11 to 20, "medium"
effort, and from 21 to 30, "high" effort. For each aspect, we
consider 0 as "no presence" and 1 as "presence".
The third index measures the change in the
organization culture, the "Cultural index". It varies from 0
2, and it values the perceived changes in the organizational
rules, behavior and procedures. We consider 0 as "no
change", 1 as "some change" and 2 as "change perceived".

PAQ WINTER 2011 573
Finally, the "Impact index" measures whether the
objectives have been achieved. The maximum value of the
index is 18. We considered "low" between 0 and 6,
"medium" between 7 and 12 and "high" between 13 and
18. It is calculated with the same procedure as the
objectives index. We also employed correlation analysis to
show the relationship between the indexes and to analyze
the importance of the factors that integrate the
implementation index.
Table 10
Process of implementation indexes
Objectives Implementation Culture Impact
San Jose
High (16)
High (29) Perceived change (2)
High
(16)
Austin
High (18)
High
(14)
Melbourne
High (18)
High
(13)
Mataro
High (13)
High
(16)
Charlotte
High (16)
High (23) Some change (1)
High
(14)
Maricopa
High (17)
High (22) Some change (1)
Medium
(11)
Lulea
High(15)
Medium (14) Some change (1)
Medium
(7)
Holdfast
Bay
High (16)
Medium (17) No change (0)
Medium
(7)
Mostoles High (13) Medium (12) No change (0) Low (0)
Scottsdale Medium (12) Medium (11) No change (0) Low (5)
San Cugat High (16) Medium (11) No change (0) Low (0)
Tucson High (17) Low (9) No change (0) Low (1)
As we found above in the global analysis, the
objectives of the implementation were one of the areas with
the greatest consensus. We can see that all the local
governments have far-reaching objectives. Consequently,
the Objectives index cannot be considered an explanatory

574 PAQ WINTER 2011
variable of the strategy of implementation and its impacts
because the corresponding indexes vary among cities. This
is confirmed by the correlation analysis (see Table 11).
Although all local governments claim to have the same
"politically correct" objectives, the Implementation and
Cultural indexes show that this does not mean that they
become the objectives pursued. The similar objectives
suggest that local governments perceive similar pressure
for the implementation of strategic management. On the
other hand, the differences in the implementation and the
impacts confirm that their answers to these pressures differ.
Table 11
Correlations between indexes
Implementation Culture Impacts
Objectives Pearson Correlation
Sig. (bilateral)
0,413 0,337 0,257
0,182 0,285 0,420
The analysis of the Implementation index shows
three different levels of effort (Table 10). There is one local
government with low effort, five with medium and six with
high. Tucson showed the lowest effort, which suggests an
avoidance strategy. This strategy reflects that this local
government is not really trying to implement strategic
management. In other words, it is simply window dressing.
The implementation effort of Tucson is characterized by
not making an initial analysis of the situation and by a very
low effort regarding the involvement of employees
-
participation in the vision and mission, awareness of the
change and training.
San Cugat, Scottsdale, Mostoles, Holdfast Bay and
Lulea show a medium effort in the implementation, which,
in most cases, produces no cultural change. This suggests a
compromise strategy, where the organization has the spirit
of introducing strategic management and, thus, made some
efforts, but tries to accommodate it to their own rules. The

PAQ WINTER 2011 575
efforts related to personnel are higher than in Tucson, but
not enough to produce strong cultural changes. In fact,
these cases suggest that they are not seeking strong cultural
changes. Holdfast Bay and Lulea, the cities that have
achieved a medium impact, carried out an initial analysis of
the situation, which may show some intention to balance or
to pacify (see Oliver, 1991) the introduction of strategic
management. In the case of Lulea, we also find some
cultural change, which may be produced by the stronger
effort in training, a variable with a stronger effect on
cultural change (see Table 12).
The final group, with Maricopa, Charlotte, Mataro,
Melbourne, Austin and San Jose, is integrated by cities that
made a strong implementation effort. This group could be
subdivided into Maricopa and Charlotte with a high effort
(index less than 25) and Mataro, Melbourne, Austin and
San Jose with a very high effort (index of 25 and above).
These cities are identified as having a strategy of
acquiescence as they made the greatest effort to implement
strategic management by acting in all the areas that are
considered necessary. In the acquiescent behavior, the local
governments consciously choose to comply with external
pressures considering the possible benefits ranging from
social support to resources.
The Implementation index shows a strong
correlation with the Cultural and Impact indexes.
Consequently, the local governments that have adopted a
positive strategy towards change have identified how to
introduce it and made efforts in this direction. These local
governments have achieved their objectives.
In addition, we have analyzed the correlations
between the Cultural and Impact indexes and the different
aspects that integrate the Implementation index. We find
that the strongest influence on cultural change and on
impacts comes from aspects related to the personnel
-
training, personnel awareness, involvement in the

576 PAQ WINTER 2011
development of the mission and vision, and level of
participation of middle and front line employees-.The
influence is lower for the following aspects: the elaboration
of an initial analysis, the sense of urgency and priority and
the leadership and compromise of managers and politicians.
The other factors analyzed -initial situation,
existence of a change team, consultant, planning and
compatibility- do not have a clear influence. This confirms
the key role of personnel in the change, a role that seems to
be acknowledged by those wishing to change. It could be
argued that the local governments with more active
strategies towards the change have considered the
possibility of individuals, in particular the employees,
resisting the change and have taken actions to neutralize it.

PAQ WINTER 2011
Table 12
Correlation between indexes and factors
Culture Impacts Culture Impacts
Implementation
Pearson
Correlatio
n
0,921(**
)
0,943(**
)
Training Pearson
Correlation
0,835(**
) 0,859(**)
Sig.
(unilateral) 0,000 0,000
Sig.
Previous
Experiences
Pearson
Correlatio
n 0,483 0,453
Support
Leadership
Pearson
Correlation 0,592(*) 0,589(*)
Sig.
Sig.
InitialAnalysis
Pearson
Correlatio
n
0,677(**
)
0,594(**
)
Change
Team
Pearson
Correlation 0,321 0,443
Sig.
Sig.
Mission-Vision
involvement
Pearson
Correlatio
n
0,703(**
)
0,754(**
)
Consultant Pearson
Sig.
Sig.
Middle/Front
line Employees
Pearson
Correlatio
n
0,703(**
)
0,705(**
)
Planning
Compatibili
ty
Pearson
Sig.
Sig.
Personnel
Awareness
Pearson
Correlatio
n
0,775(**
)
0,903(**
)
Urgency
Priority
Pearson
Correlation
0,843(**
) 0,869(**)
Sig.
(unilateral) 0,002
0,000(**
)
Sig.
DISCUSSION
There is a high degree of coincidence between the
objectives proposed by the OECD to encourage the
implementation of strategic management systems and the
objectives established by the local governments studied: the
setting of meaningful goals, the improvement of efficiency
and effectiveness, citizen satisfaction and strategic
planning, improvement in the decision-making process, the
alignment of the organization to its mission, and improving
resource allocation. This suggests a certain degree of

578 PAQ WINTER 2011
rhetoric when setting objectives, as local governments state
those which are 'politically correct'. No government or
stakeholder would deny that efficiency and effectiveness
and customer satisfaction are key objectives of public entity
reforms.
These objectives show that one of the goals of
strategic management implementation is to gain legitimacy,
as institutional theory and resource dependence theory
state. The level of information disclosed by the local
governments also suggests a search for legitimacy (see
Appendix A). This consensus on the objectives declared
contrasts with the lack of it in most implementation aspects
and with the different levels achieved in the Impact,
Cultural and Implementation indexes (see Table 10).
The Delphi answers show that the BSC model is
usually adapted, rather than adopted, to the local
governments' different cultural and organizational
characteristics and traditions. Adapting a trusted system
may give additional credibility (legitimization) to those
using it. Or, as suggested by Czarniawska (2005, 2009), the
local government may select the system because it is
fashionable. Only San Cugat has defined the four
perspectives as Kaplan and Norton proposed. Charlotte,
San Jose and Lulea also have four perspectives, but
different ones. Charlotte initiated the implementation with
the Kaplan and Norton perspectives, but changed later to
adapt the system to the public sector setting8.
In fact, Kaplan and Norton (1996) suggested
adapting the perspectives of the BSC. In most cases (see
Appendix A), strategic management has been adapted to
the public sector setting: this is the case of Holdfast Bay,
Melbourne, Mataro, Austin, Charlotte, Maricopa, San Jose
and Lulea. Nevertheless, there are three cases, Mostoles,
Scottsdale and Tucson, that suggest a different behavior as
g
See www.charmeck.org.

PAQ WINTER 2011 579
they maintain their previous structure to implement
strategic management and use budgetary items,
departments and programs categories as perspectives,
respectively. These cities have made either low - Tucson
or medium efforts -Mostoles and Scottsdale- and have had
no cultural change and low impact. This shows that a lack
of real adaptation to strategic management postulates may
prevent positive impacts in its implementation.
Notwithstanding, the consideration of strategic
management, as a socio-dynamic process (Ansoff, et al.,
1976), implies that strategic management requires not only
an adaptation to the environment but also an important
change in the internal culture.
The Implementation index shows a positive
correlation with the Cultural index and the Impact index,
but no correlation with the Objectives index (see Tables 11
and 12). Furthermore, only the cities that have made a very
high implementation effort -Mataro, Melbourne, Austin
and San Jose- have perceived some cultural change and
have a high impact. This is evidence that the strategic
choice made by the local governments in the process of
implementation has a great influence on the result.
The implementation effort indicates the strategic
choice made and allows us to understand the relationship
between implementation efforts and results. It shows why
the results can differ from the stated objectives. In fact, the
aspects that create lack of consensus, such as the
elaboration of the initial analysis, the involvement of the
different employees in the process and the level of training,
are those that distinguish the cities with greater cultural
change and impact (see Table 12). We find that Tucson
adopts a strategy of avoidance or made a low
implementation effort. This effort suggests no real intention
of transforming the organization, as is also shown by the
perspectives they design. An avoidance strategy reflects
window-dressing behavior and confirms that, after the

580 PAQ WINTER 2011
initial phases, local governments with outstanding
reputations for managing for results sometimes do not go as
far as their reputation would imply (see Burke and Costello,
2005). Tucson adopts strategic management to attain
recognition in the organizational field. The results are a
lack of implementation effort and cultural change and a low
achievement of objectives.
The other local governments, with medium or high
implementation efforts, adopt strategies without resistance
to change, either strategies of compromise or of
acquiescence. The strategy of compromise, identified by a
medium implementation effort -San Cugat, Scottsdale,
Mostoles, Holdfast Bay and Lulea- reflects that the local
government wants to change but also wants to adapt the
system to its organizational characteristics.
The strategy of acquiescence is used by Maricopa,
Charlotte, Mataro, Melbourne, Austin and San Jose. Their
greater implementation effort suggests that they want to
fully adopt strategic management. These local governments
made a great implementation effort to focus the
organization towards the change and they underwent a
cultural change and obtained impacts from the
implementation. Their widespread use of SMS increases
the level of satisfaction with the impacts from
implementation.
In general, the barriers to implementation have been
valued as low or inexistent. To some extent, the local
governments feel that they achieved what they expected,
regardless of whether the achievements are those generally
expected from strategic management. Other aspects of the
process of implementation with an influence on the Impact
and Cultural indexes are the following. First, the positive
influence of aspects related to the personnel
-
training,
personnel awareness, middle and front line employee
involvement- found in the correlation analysis (Table 12).
This confirms that it is important to analyze the strategies

PAQ WINTER 2011 581
of both local governments and their members. Local
governments perceive the strategies of resistance to change
and act against them when they increase their effort in the
implementation. The local governments with a very high
effort have involved, trained and informed their employees
about strategic management and its effects.
Second, the existence of the initial analysis has a
positive effect on the Cultural and Impact indexes. It helps
to identify which local governments are willing to change,
as all the cities with a very high effort -Mataro, Melbourne,
Austin and San Jose- have performed this analysis. Third,
the importance given to having support and leadership by
the cities with a high effort, such as Melbourne, Austin,
Charlotte and San Jose, confirms the importance of
institutional entrepreneurs or leaders, as shown by Young
et al. (2001).
Finally, the weight of the sense of urgency and
priority, with greater importance in cities such as
Melbourne, Mataro, Austin, Charlotte, Maricopa and San
Jose, suggests, as noted by Czarniawaka & Joerges (1996),
that the reform or the problem to solve with it must be
dramatic or exciting to receive attention. Similarly, Biyson
(1981) argues that crisis may be the motor of change in
public institutions.
CONCLUSIONS
The analysis of the implementation process of
strategic management systems shows that the objectives
which drive this implementation in the local governments
studied are aligned with those considered "politically
correct" by the institutional theory and resource
dependence theory. However, they are not always
consistent with the efforts carried out in the strategic
management implementation process. The Delphi analysis
shows that the introduction of strategic management into

582 PAQ WINTER 2011
local government follows different implementation
strategies. The role of the personnel in the implementation
process -training, involvement in the development of the
mission and vision, level of participation of middle and
front line employees, and personnel awareness- is a key
issue in the explanation of the gap between the objectives
stated and the achievements. The more effort from local
government in involving the personnel, the more impact
and cultural change is achieved.
Other factors found to be crucial in the
implementation process are the priority and urgency given
by the local government to this initiative and the
performance of a previous study about the situation of the
organization. On the contrary, previous experiences and
consultancy services do not show a clear influence on the
implementation process. The structure of the strategic
management system -the perspectives- gives additional
information about the willingness of the organization to
introduce strategic management. To obtain cultural change
in and impact on the organization, a necessary condition
seems to be to have its perspectives focused on strategy
but, by itself, it is not enough to guarantee a successful
implementation. The adaptation of the organization to the
strategic management framework is confirmed as vital for
success.
Although strategic management has been looked on
with suspicion, some local governments have attained
results and none of the local governments studied finds
important barriers to the implementation process. This
suggests that each local government is achieving what it
was actually expecting, regardless of their stated objectives
and goals. Unlike strategic planning, strategic management
requires a major adaption of the organization but it has the
advantage of better overcoming the resistance to strategic
change. The study shows that only a big effort towards the

PAQ WINTER 2011 583
change -an acquiescence strategy- results in noticeable
impacts.
From this study, practitioners can learn the core
aspects for dealing with resistance to the implementation of
strategic management and obtaining the most from this
process. The personnel, the urgency and priority, the study
of the initial situation and the changes in the structure are
the musts of an implementation that seeks results. Previous
experience or consultancy firms may help but are not
essential. The study also shows some legitimacy-seeking in
the implementation objectives, which may lead to rhetorical
implementations. Thus, it is crucial to pay attention to the
implementation process to identify possible window
dressing initiatives.
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APPENDIX A
Popula
tion
Implem
ent
Year
Why
implem
ent
Who
decided
Perspectives Informati
on
externall
y
disclosed
2
Channels
of
communi
cation3
.2
j
Holdfa
st Bay
34,073 2001 Organiz
ation
Culture
Manager
s
Social Development,
Environmental
management,
Economic
Development and
Physical Development
A, B, C,
D
A, C
< Melbo
urae
61,670 2000 Externa
1
Mandat
e
Manager
s
Economic,
environmental and
social
A, B, C,
D
A, C
San
Cugat
70,514 2002 CEO
Experie
nee
Political
appointe
es
Customer, financial
health, internal
process, growth and
learning
D A, C
Spain
Mataro 116,69
8
2000 CEO
Experie
nee
Political
appointe
es
Professionalization,
focused on results,
quality
A, B, C,
D
A, B,C
Mostol
es
204,46
3
2004 CEO
Experie
nee
Political
appointe
es
Budgetary items B

590 PAQ WINTER 2011
Austin 672,.0
11
1994 Researc
h and
Adoptio
n
Manager
s
BSC for Activities of
the departments around
four main topics 1
B, C A, C
Charlo
tte
584,65
8
1996 Researc
h and
Adoptio
n
Political
appointe
es
Serve the customer,
run the business,
manage resources and
develop employees
A, B A, C
"c5•w
CZ3
TS
Marico
pa
3,200,
000
1998 CEO
Experie
nee
Political
appointe
es
Strategic priorities A, B, C,
D
C
'g
San
Jose
898,34
9
1998 Researc
h and
Adoptio
n
Manager
s
Quality, cost cycle
time customer
satisfaction
A, B, C,
D
A, C
Scotts
dale
217,98
9
1996 Underst
and our
organiz
ation
Manager
s
By department A, B
Tucso
n
507,65
8
1994 Not
specify
Manager
s
Program categories A, C, D A, C
1
Sweden
Lulea 45,036 2001 CEO
Experie
nee
Manager
s
Personnel,
development,
customer, private
sector and society
A, B, C,
D
A, B, C
Public Safety, Youth, family and neighborhood vitality, Sustainable community and
Affordability.
A- Strategic Plan, B- Performance Reports, C- Performance measures, D- Annual
Reports.
3
A- Web site, B-Press Releases, C- Mail or Phone

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