The policies of the Labour government in the UK place renewed emphasis on r
ational planning in the public sector. The government's assumption is that
this approach to decision making will lead to improvements in performance.
Although the theoretical costs and benefits of rational planning have been
widely debated in the public administration literature, no systematic empir
ical research on the impact of planning on the performance of public organi
zations has been conducted. By contrast, the relationship between rational
planning and the success of private firms has been investigated extensively
. A meta-analysis and critical review of this evidence suggests that planni
ng is generally associated with superior performance. However, important qu
estions remain unresolved. For example, under what circumstances does plann
ing work best, and which elements of planning are most important? Therefore
, although it may be appropriate to encourage public agencies to consider c
arefully the potential benefits of planning, rational processes should not
be imposed upon them.