The Importance Of Strategic Planning As A Component Of Strategic Management – A Comparative Analysis Between Selected Public Institutions

ABSTRACT

This analysis look at strategic planning as a component of strategic management, it therefore compares and contrasts the activities of strategic planning in some of the public institutions. The analysis starts on plan formulation and proceeds with the implementation of such plans in organizations such as Northern Electricity Distribution Company (NORED), Government Institutions Pension Fund (GIPF), the Municipal Council of Windhoek – Electricity Department and Rundu Town Council. In its first phase the research dwells on the aspects and components of strategic planning in general. This part, therefore outlines the entire process of strategic planning without necessarily concentrating on any of its components. It then provided the framework for determining whether strategic planning is being practiced accordingly in the given institutions. A comparative approach is used in the research. First and foremost the institutions selected as centers of analysis were grouped in corporate and local authorities categories. Thereafter a comparative analysis is done on institution’s individual capacity with specific reference to strategy formulation and implementation. The analysis indicates that strategy formulation is a participatory exercise that is spearheaded by top management in consultation with middle management and inputs from the general workforce. However, it was noted with concern that sometimes there happens to be a communication breakdown between several actors in the strategy formulation process. It is also worth mentioning that some organizations feel that it is not of great benefit to leave all the activities of strategy formulation into the hands of the experts and consultants as they might not be familiar with the operational environment of the organization and other factors that play a role on this specific process.