CHAPTER
ONE
INTRODUCTION
1.1
Background
to the Study
The effectiveness of strategic planning can be
measured in terms of the extent to which it influences organizational
performance, which affects its survival rate. Strategic planning can be defined
as the process of using systematic criteria and rigorous investigation to
formulate, implement and control strategy and formally document organizational
expectations (Higgins and Vincze, 1993; Mintzberg, 1994; Pearce and Robinson,
1994).
Strategic Planning is a process by which we can
predict the future and develop the necessary procedures and operations to
influence and achieve that future. As in many other fields, strategic planning
professionals often wrap their work in pseudo-scientific jargon designed to
glorify their work and create client dependence.
In reality, strategic planning processes are neither
scientific nor complex. With modest, front-end assistance and the occasional
services of an outside facilitator, organizations can develop and manage an
on-going and effective planning program.
Strategic planning consists of a set of underlying
processes that are intended to create or manipulate a situation to create a
more favourable outcome for a company. This is quite different from tradition
tactical planning that is more defensive based and depends on the move of
competition to drive the company's move.
In business, strategic planning provides overall
direction for specific units such as financial focuses, projects, human
resources and marketing.
Strategic planning may be conducive to productivity
improvement when there is consensus about mission and when most work procedures
depend on technical or technological considerations.
Therefore, according to (Eadie, 2004), strategic
planning may be defined broadly or narrowly. However, this formulation still does
not help managers in the public sector, for now they need to decide not only
whether they want to develop strategic plans but also whether they should
approach such plans with a global perspective or with a narrower one.
Thus, what seems to be a problem of semantics masks
a fundamental question about the inclusion or exclusion of goal definition from
the strategic planning process. According to Berry (1997) Strategic planning is
a tool for finding the best future for your organization and the best path to
reach that destination. Quite often, an organization's strategic planners
already know much of what will go into a strategic plan.
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