This paper explores potential relationships between environmental and organisational determinants, strategic management, and outcomes in Norwegian municipalities during a period of local government structural reform which represented much environmental turbulence. Many public sector organizations conduct strategic planning either voluntarily or due to public management regulations. The strategic planning is an attempt to better align the organization to an anticipated future state of the world with the information available at the time of planning. Often it is alleged that strategic planning is easier when the environment is stable and simple to understand. Yet, many public sector organizations plan despite turbulent environments or due to turbulent environments in the hope that the planning will result in a better future fit than without the planning. This is the traditional view of strategic planning. Public sector organizations also plan to impact not only its fit to the anticipated future state of the world to get as good performance as possible but also to impact the environment in a politically and socially desirable way. Public organizations’ missions are to create public value and many public sector organizations are by their relative size in their environments major determinants of the environment. How strategic planning eventually impacts public sector organizations’ performance and which management tools and processes are employed to impact the organizations’ performance as well as their environments are seldom studied empirically. The paper explores the impact of strategic planning and structural alignment in 121 of the municipalities in 2016 in a path model with partial least squares path modelling (PLS-PM) on three dimensions of performance: citizen and user satisfaction; service efficiency in kindergartens, schools, and home care; and financial results in 2019. The results indicate that strategic planning and structural alignment may impact citizen and user satisfaction, and efficiency positively when the strategic management takes place in a context of much environmental turbulence. The results have potential implications for strategic management theory and practice because a commonly held view is that strategic planning in turbulent environments has little usefulness. The paper contributes to shed more light on the impact of strategic planning during turbulent times including better understanding of the relationships between the environment, stakeholder involvement, planning processes, and organizational performance.