IMPACT OF STRATEGIC PLANNING ON ORGANIZATIONAL PERFORMANCE (CASE STUDY OF UNITED BANK FOR AFRICA (UBA)

CHAPTER ONE

INTRODUCTION

  • 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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