An examination of strategic planning and its impact on the achievement of organizational goals
1.1 BACKGROUND OF THE STUDY
In a continuously changing and competitive market, every company wants to survive and thrive. To do so, it must adapt to and adjust to changes in the social, economic, and political environments.
According to (Bryson, 2004), the environments of public organizations have grown not only more unpredictable but also more intimately linked in recent years; consequently, changes anywhere in the system ricochet unexpectedly, and sometimes chaotically and dangerously across the environment. The growing unpredictability and interconnectivity need a five-pronged response from government agencies. First and foremost, these companies must think strategically like they’ve never thought before. Second, individuals must apply their newfound knowledge to develop successful methods for dealing with their shifting situations. Third, they must establish the logic required to create the groundwork for their strategy’ adoption and execution. Fourth, they must form broad and powerful coalitions in order to embrace desired tactics and defend themselves throughout execution. Finally, they must develop capability for continuing strategic change management.
Strategic planning may assist public-sector leaders and managers in thinking, learning, and acting strategically (Bryson, 2004). Strategic planning was born out of the desire for businesses to have a plan in place to optimize their profitability. Motivation nowadays is diverse and varies depending on the type of company.
The requirement for a firm to respond proactively to environmental issues has now become critical, since it provides a competitive advantage in today’s commercial world. As a result, every company, regardless of size, must have a strategic strategy.
The public sector is rapidly gaining attention from various development plans, particularly in emerging nations, as a critical sector for the socio-economic liberation of African countries. The role of the state and its institutions in implementing the development agenda has been highlighted as a critical partner for the private sector. Indeed, the public sector has been pressed to embrace the private sector’s approaches to growth and development in all areas of the economy.
The public sector in developing nations can no longer handle developmental challenges in the same way it used to, especially given global advances in corporate management and the projected rapid growth required for faster economic transformation. As a result, a number of development specialists have determined to persuade governments to design and implement a coordinated and comprehensive strategy to maximize their commercial potential as a source of growth.
In recent years, the Nigerian government has begun on public sector management reforms with the goal of enhancing and adding value to its operations. As a result, a Ministry of Public Sector Reforms was established to spearhead this agenda and collaborate closely with the National Development Planning Commission (NDPC), which is responsible for coordinating the country’s development framework.
1.2 STATEMENT OF THE PROBLEM
Given the numerous problems that businesses face, it is critical for businesses, both for profit and nonprofit, to anticipate obstacles, identify strengths to handle those issues, and take control of available opportunities to achieve optimum productivity.
Unfortunately, most companies, particularly those in the public sector, do not carry out and implement strategic plans adequately. Some government agencies do not value strategic planning and, as a result, do not have strategic plans for their organizations. This might be due to a lack of understanding and respect for the importance of strategic planning in achieving corporate goals.
In order to overcome this regrettable trend, it is necessary to objectively evaluate the impact of strategic planning on organizational success in the public sector and private sector, allowing management to recognize its value in achieving a competitive edge in the marketplace.
1.3 OBJECTIVE OF THE STUDY
The primary aim of this study is to examine the impact of strategic planning on the achievement of organizational goals, thus, the following are the specific objectives;
- To determine the effect of strategic planning on the achievement of organizational goals.
- To determine the extent to which organizations use strategic planning in business operations.
- To determine the consequences of organizations avoiding the use and implementation of strategic planning.
1.4 RESEARCH QUESTIONS
The following questions guide this study;
- What is the effect of strategic planning on the achievement of organizational goals?
- To what extent do organizations use strategic planning in execution of their day to day activities?
- What are the consequences of organizations avoiding the use and implementation of strategic planning?
1.5 SIGNIFICANCE OF THE STUDY
This study will be significant as the findings of this study will be of great value to management and staff of Nigerian organizations both in private and public sector, as it will assess the relevance of strategic planning on organizational growth, clarify the challenges and the ways to meet them. Student researchers in related areas will also find the study a useful literature for reference.
The study will make contributions in that regard to encourage managers in public sector to adopt strategic planning in the management of their entities in order to have competitive advantages in their industry.
1.6 SCOPE OF THE STUDY
This study will only cover the importance of strategic planning and its impact on the achievement of organizational goals. The consequences of organizations avoiding the use of strategic planning will also be looked into.
1.7 LIMITATION OF THE STUDY
This study will be limited to two companies, one from the private sector and one from the public sector. During the course of this study, the researcher was limited by insufficient time to cover more than two organizations.
1.8 DEFINITION OF TERMS
- STRATEGIC PLANNING: Strategic planning is a management technique that enables companies to adjust competitively to expected or future changes in the environment