This study determines the effectiveness of strategic planning as an effective tool of strategic management in public transit agencies. It finds that an effective strategic planning requires top managers’ active roles in defining the strategic direction of the organization and creating an environment that recognizes strategic planning as a tool of strategic management. Also, it requires good working relationships between the strategic planning staff, unit or division managers, and the top management team; the location of the strategic planning staff close to top management; integration of unit or division plans into an organization-wide strategic plan; and a planning process that is not too rigid or mechanical. Finally, the article finds that the strategic planning process of an organization must be responsive to environmental changes and challenges.
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