Strategic Planning And The Achievement Of Organizational Goals

Finally, although strategic planning may not be systematized or formally implemented, small business organizations need strategic planning for effective performance.
2.17    Strategic Planning in Not -For -Profit Orga nizations
Not-for-profit organizations are not primarily designed for the pursue of profit goals or generally for economic production for the purpose of self-maintenance. This differ from other profit making organizations. Wortman J r has classified these organizations into three groups:-
1.    Public organization example Nigerian Army
2.    Third    Sector    Organizations example    government research institutions and consultancies etc.
3.    Institutional Organizations example Federal Universities.
Characteristics of Not -For -Profit    Organizations Newman and Wallender III (1978)
1.    The services they provide is intangible and hard to measure.
2.    Customer influence may be weak .
3.    Strong employee commitment to professions or to a cause may weaken their allegiance to the organization.
4.    Resource contributors may intrude into internal management.
5.    Restraints on the use of regards and punishment result from 1,2, and 4 above.
6.    Charismatic leaders and the “Mystique” of the enterprise may be important means of resolving conflict in objectives and overcoming restraints.
He concluded that “not for profit organizations are just at the initial state of using strategic management concept. Wortman also found that not for profit organizations tend to be manage d more in a short term operation sense than in a str ategic sense. Also Hofer and Schendel commented, “there is some evidence that some of these organizations have strategy at all. Rather they seem motivated more by short-term budget cycles and personal goals than by any interest in re-examining these purpos e or mission in light of altered environmental circumstances.
Not for-profit organizations have really not experienced strategic planning. Strategic planning started developing in large business organizations. Moreover, there is enormous diversity in the organizational structure of not profit organization s. As a result of this diversity, it is not possible to isolate a formal strategic planning process for all not -for-profit organizations. Moreover, the types of organizational problems handled in each of th ese organizations may not be a relevant learning experience for other not-for-profit organizations.
Irrespective of the problems of developing strategic planning is now adopted by many organizations that are not for profit purpose. The recent commercializa tion and privatization policies of the Federal Government of Nigeria for many public Agencies and continuous shortage of Government economic or financial leverage to its agencies have become the new force that is responsible or adopting strategic managemen t model for government agencies.
Finally we observed that these strategic planning activities are now in the police force, hospital, church organizations, local governments, town unions etc.
2.18    Usefulness of formalized planning (J ohnson   & Scholes 1999 P. 51 )
1.    It can provide a structured means of analysis and thinking about complex strategic problems, requiring managers to question and challenge what they take for granted.
2.    It can be used as a way of involving people i n strategy development thereby helps in creating ownership of the strategy.
3.    Strategic planning may also help to communicate intended strategy.
4.    It can be used as a means of control by regularly reviewing performance and progress against agreed objectives or previously agreed strategic directio n.
5.    It can be a useful means of co -ordination for example by brining together the various SBU ’s strategies within an overall corporate strategy or ensuring that resources within a business are co-ordinated to put strategy into effect.
6.    It can encourage a lo ng-term view of strategy tha t might otherwise occur. Planning horizons vary of course in a fast moving consumer goods company, 3 -5years plans may be appropriate. In company which have to    take very long-term views on capital investment, such as those in the oil industry, planning horizons can be as long as 14years (in Exxon) or 20years (in shell).
2.19    Dangers    in    the    Formalization    of    Strategic    Planning (J ohnson and Scholes 1999 P.53) 
1.    Strategies are more or less successfully implemented through people. Their behaviour will not be determined by plans, so the cultural and political dimensions of organizations have to be taken into account. Planning processes are not typically design to do this.
2.    The managers responsible for the implementation of strategies , usually line managers , may be so busy with the day to day operations of the business that they cede responsibility for strategic issues to specialist. However the specialist do not have power in the organization to make things happen.
The result can be that strategic planning becomes an intellectual exercise remove from the reality of operation.
3.    The process of strategic planning may be so cumbersome that individuals or groups in the firm might contribute to only part of it and not understand the whole. T his is particularly problematic in very large firm. One executive on taking over as marketing manager in a large multi national consumer good s firm was told by his superior to do corporate planning in the first two weeks of April, then we get back to our j obs.
4.    There is danger that strategy becomes thought of as the plan. Managers may see themselves as managing strategy because they are going through the processes of planning. Strategy is of course not the same as the plan” strategy is the long -term direction that the organization is following not a written document on an executives shelf.
5.    Strategic planning can become over detailed in its approach, concentrating on extensive analysis which while sound in itself may miss the major strategic issues facing the organization. For example it is not usual to find companies with huge amount of information on their market but with little clarity about the strategic importance of that information. The result can be information over load with no clear outcome.
2.20    Advantage and Disadvantage of Strategic Planning. Advantages of Strategic Planning    Onwuchekwa (2002).
1.    It provides managers a sense of direction , insight and consistency in dealing with organizational problems.
2.    It helps managers to improve decision making skills.
3.    Through strategic planning managers reduce trial and error mistakes since they have better guidance in the strategic planning goal formulation processes .
Disadvantages of Strategic Planning    Onwuchekwa (2002)
1.    Strategic planning require s considerable investment in tim e, economic and human resources.
2.    Where a formal system of strategic planning is implanted in an organization, it may be expensive to maintain.
3.    Strategic planning may limit an organization’s maneuvering to exploit opportunities outside its area of strategy formulation. So    opportunistic surveillance behavior may    only be conservative within the isolated strategic business areas of an organization with formal strategic planning system.
2.21     Reasons Why Strategic Plans f ails Dudik, (2000)
There are many reasons why strategic plans fail especially:
1.    Failure to understand the customer
a.    Why do they buy?
b.    Is there a real need for the product?
c.    Inadequate or incorrect marketing research
2.    Inability to predict environmental reaction
a.    What will competitors do?
i.    Fighting brands
ii.    Price wars
b.    Will government intervene?
3.    Overestimation of resource competence
a.    Can the staff, equipment, and processes handle the new strategy?
b.    Failure to develop new employee and management skills.
4.    Failure to co-ordinate
a.    Reporting and control relationships not adequate.
b.    Organizational structure not flexible enough .
5.    Failure to obtain senior management commitment
a.    Failure to get management involved right from the sta rt
b.    Failure to obtain sufficient company resources to accomplish task.
6.    Failure to obtain employee commitment
a.    New strategy not well explained to employees
b.    No incentives given to workers to embrace the new strategy.
7.    Failure to follow plan
a.    No follow through after initial planning
b.    No tracking of progress against plan
8.    Failure to manage change
a.    Inadequate    understanding    of    the    internal    resistance    to change.