Public-Private Differences and the Assessment of Alternatives for Decision Making

Decision making in public, private, and third-sector organizations was examined to isolate the practices used to assess alternatives and compare them with the analytical, judgmental, and bargaining tactics discussed in the decision-making literature. The assessment practices of decision makers and their outcomes were uncovered from 317 strategic decisions. Sector was included to qualify the findings. Decision makers in public organizations were found to be more successful when they sought out expert views and used hard data, third-sector decision makers were more successful when they applied bargaining, and private-sector decision makers were more successful when they used analysis. Bargaining was less successful for public organizations than was expected. The implications of these findings are discussed.