Strategic Planning And The Achievement Of Organizational Goals

manager can ask which of the available course action are most consistent with our strategy.
3.    It involves a longer time frame than other types of planning.
4.    It provides a sense of coherence and momentum to an organization actions and decisions overtime.
5.    It is a top-level activity in the sense that top management must be actively involved. This is because; firstly only top management has access to the information necessary to consider all aspects of the organization and secondly commitment from top management is necessary to generate commitment at lower level.
2.6    Modes of Strategy Formulation   (Mintzberg 1978)
Modes of strategy formulation describe the various styles managers adopt in their strategy formulation process. There are three modes of strategy formulation according to Mintzberg which are:
a.    The entrepreneurial mode
b.    Adaptive mode
c.    Planning mode
a.    The Entrepreneurial Mode of Strategy Making   
This mode describes a situation in an organization where one of the organizational members who is highly placed make most of the decisions in the organization. This mode of or ganizational behaviour is flexible in strategy formulation. New strategies can be introduced intuitively without detailed analysis. The goal of the entrepreneur is growth and he relies on his personal judgement in choosing one strategy and another for impl ementation.
Entrepreneurial mode of strategy formulation is necessary and relevant in organization when an organization is new born and it is entering business environment for the first time . During this period, flexibility is needed in strategy formulati on. This is because there may be interim change in the operational plans and strategic control    may        demand    a        formulation        or        growth    strategy.    This situation may    demand a            real -time strategic        response.        A conservative manager    maybe        unwillingly    to    respond    but        a n entrepreneurial        manager must            respond immediately. Entrepreneurial behaviour in strategy formulation is relevant when there is turbulence in the business environment which may give rise to a lot of boundary spanning    issues which may demand various strategic structural responses. So in summary, we can mention here that entrepreneurial mode of strategy formulation is flexible        and            dynamic        in        response to changes in business environment.
b.    Incremental Mode of Strategic Formulation    (Adaptive Mode)
The incremental behaviour is exhibited by a large percentage of    business    firms    and    virtually    by    all    non -business    purpose organization such as the hospital, the church and the university organization.
This mode of strategy formulation is also called Adaptive mode of strategy formulation or the science of muddling through .
According to Stonner “Where the entrepreneur confronts the environment as a force to be controlled, the adaptive manager reacts to each situation as it arises. Where strategy in the entrepreneurial organization consist typically of dramatic leaps forward in the face of uncertainty, the adaptive organization moves ahead timidly in a series of small, disjointed step s. Also where the entrepreneur constantly seeks to beat competition to the much, the adaptive manager tends to react defensively to the actions of competitors.
The difference stems from the act of a central source of power, caught in a web of conflicting forces owners, unions, government and so on. Management cannot always negotiate a clear statement of objectives. Hence the reactive, fragmented, disjointed strategy making that oddly enough, add an element of flexibility and they account largely for the organizations ability to muddle through.
Finally, lack of technical competency and conse rvative indoctrination may influence incremental mode of strategy formulation.
c.    Planning Mode of Strategy Formulation  
The planning mode prescribes that formal strategic planning guideline in the strategy formulation. It provides the guidelines and framework and sense of directions in strategic planning which both the entrepreneurial and incremental modes of strategy formulation lack. The planning mode advocates a systematic procedure in strategy formulation to analyze the environment, the resources of the organization etc inorder to develop a plan for the future. In addition, these strategic decision and strategic control plans are formulated.
As the planning mode provided a grand strategy which provided the overall concept of a firm, it s descriptive concepts are the natural extension of the product/market scope.
2.7    Organizations and Choice of Strateg y (Onwuchekwa 2002 Pg 161)
The three types of mode of strategy formulation above may be found in various organizations. Some managers may exhibit entrepreneurial behaviour others incremental, while others may adopt the planning mode.
So in some complex organization, one may identify the three types of strategy formulation modes. According to Onwuchekwa (2002. P.161) He has identify that in Nnamdi Azikiwe Un iversity some heads of departments and deans of faculties that exhibit the above strategy formulation modes. These factors that influence the adoption of any of the strategy formulation modes may include the life cycle of an organization, managerial styles , degree of commitment to investment etc.
An organization that has just come into existence may adopt entrepreneurial mode because of a lot of trial and error due to inexperience. An organization that is operating in a stable environment may be reactive or adaptive behaviour.
Generally small business organization that are in competitive relationship with others may be entrepreneurial in behaviours. Large organization that are able to diversify into new markets may exhibit both entrepreneurial and planning mode within some of its departments. (Example planning mode may be predominant in the research and development departments while planning mode may be adopted in the marketing department ).
Contingent situations in both the task and general environment of an organization will determine the appropriate mode of strategy formulation.
Finally the various department al managers may out of previous experience adopt any one of the above strategy formulation modes as pattern of organizational styles
2.8    Relationship Between Strategic Planning and Operational Plans (Onwuchekwa 2002 Pg 162)
Strategic planning is formulated at top management level while operational planning is formulated at lower management level.
Operational plans are used to implement the strategy pl ans of a firm for the purpose of attaining the corporate objectives. The focus of operational plan is on current standing and single use plan. The major concern of operational plan is efficiency. The strategic plan    of    a    firm    provides    guidance for organizat ional behaviour and boundaries for operational management. This means that both operational and strategic planning overlap and both are necessary for        the effective    and efficient performance    of organizational actions.