The importance of strategic planning as a component of strategic management
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Date
2005
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Abstract
This analysis look at strategic planning as a component of strategic management, it therefore compares and contrasts the activities of strategic planning in some of the public institutions. The analysis starts on plan formulation and proceeds with the implementation of such plans in organizations such as Northern Electricity Distribution Company (NORED), Government Institutions Pension Fund (GIPF), the Municipal Council of Windhoek - Electricity Department and Rundu Town Council
In its first phase the research dwells on the aspects and components of strategic planning in general. This part, therefore outlines the entire process of strategic planning without necessarily concentrating on any of its components. It then provided the framework for determining whether strategic planning is being practiced accordingly in the given institutions
A comparative approach is used in the research. First and foremost the institutions selected as centers of analysis were grouped in corporate and local authorities categories. Thereafter a comparative analysis is done on institution's individual capacity with specific reference to strategy formulation and implementation
The analysis indicates that strategy formulation is a participatory exercise that is spearheaded by top management in consultation with middle management and inputs from the general workforce. However, it was noted with concern that sometimes there happens to be a communication breakdown between several actors in the strategy formulation process
It is also worth mentioning that some organizations feel that it is not of great benefit to leave all the activities of strategy formulation into the hands of the experts and consultants as they might not be familiar with the operational environment of the organization and other factors that play a role on this specific process
Strategy implementation is another aspect of the strategic planning process. However, if the implementation is not done accordingly or timely it may affect the entire mission of strategic planning. The research reveals that if actors in the implementation process are not coordinated properly they may cause confusion and delay in the process that will result in undesired outcomes. From the responses and information gathered through documentary research and interviews, it is clear that strategic planning in Namibian in most cases is done in accordance with general procedures and mechanisms. However the question remains, Is this process participatory enough as there are some instances where employees fail to identify the main strategic plans of their specific organizations. It is also noted that at some instances management fail to provide feedback to all actors in the process and to communicate the outcome of the process to those it is targeted to and all other stakeholders
What is therefore recommended is that all organizations draw guidelines documents that will direct the strategic planning process in their respective organization in order to make it easy for the planners and to ensure consistency and proper communication in the entire process. It is also suggested that the current implementation modalities be reviewed to ensure that all stakeholders are in par with all the actors as well as to keep within the framework of the social, political and economic conditions.
In its first phase the research dwells on the aspects and components of strategic planning in general. This part, therefore outlines the entire process of strategic planning without necessarily concentrating on any of its components. It then provided the framework for determining whether strategic planning is being practiced accordingly in the given institutions
A comparative approach is used in the research. First and foremost the institutions selected as centers of analysis were grouped in corporate and local authorities categories. Thereafter a comparative analysis is done on institution's individual capacity with specific reference to strategy formulation and implementation
The analysis indicates that strategy formulation is a participatory exercise that is spearheaded by top management in consultation with middle management and inputs from the general workforce. However, it was noted with concern that sometimes there happens to be a communication breakdown between several actors in the strategy formulation process
It is also worth mentioning that some organizations feel that it is not of great benefit to leave all the activities of strategy formulation into the hands of the experts and consultants as they might not be familiar with the operational environment of the organization and other factors that play a role on this specific process
Strategy implementation is another aspect of the strategic planning process. However, if the implementation is not done accordingly or timely it may affect the entire mission of strategic planning. The research reveals that if actors in the implementation process are not coordinated properly they may cause confusion and delay in the process that will result in undesired outcomes. From the responses and information gathered through documentary research and interviews, it is clear that strategic planning in Namibian in most cases is done in accordance with general procedures and mechanisms. However the question remains, Is this process participatory enough as there are some instances where employees fail to identify the main strategic plans of their specific organizations. It is also noted that at some instances management fail to provide feedback to all actors in the process and to communicate the outcome of the process to those it is targeted to and all other stakeholders
What is therefore recommended is that all organizations draw guidelines documents that will direct the strategic planning process in their respective organization in order to make it easy for the planners and to ensure consistency and proper communication in the entire process. It is also suggested that the current implementation modalities be reviewed to ensure that all stakeholders are in par with all the actors as well as to keep within the framework of the social, political and economic conditions.