Effective Strategic Planning Models in Organizations Today
After the selection of a particular strategic planning model and giving due consideration to the critical success factors, an organization should begin the execution of the strategic plan. The discussion will present information on the impact of effective strategic planning and its impact in various sectors. One sector that is currently in need of strategic plans almost all through the world is the transport sector. The rapid growth of cities and trends of rural-urban migration has led to serious congestion in cities.
The dilemma caused by congestion suggests some adjustments be made to the public transport system to cope with the demands. Already it has been found that over 44% of the public sector agencies dealing with transport had some form of strategic planning, and that indicated a 6% increase over the last decade. The transportation sector was selected for the study owing to its structured nature and relative ease of operations.
Already there is legislation in place that has made a strategic plan a compulsory requirement for any agency dealing in transportation. This posits that it has been established that effective strategic planning is an essential ingredient to success in sectors facing constant increases in demands or growth. In addition to this, it is reported based on findings that successful strategic plans must be evident before all employees.
It is suggested that the best way to achieve this is for the employees to see the change in behavior starting at the top. In line with that, it is suggested that the management style must reflect the goals of the strategic plan, and if need be, it should be changed to do so. This again reiterates earlier findings that indicate management commitment is crucial for success.
Still, on the importance of strategic planning with regards to public resources, the discussion led to a review of literature on strategic planning for water utilities in developing nations. It is reported that water utility agencies in developing countries face a huge task in meeting the water needs of an ever-growing population. The provision of this essential commodity to the inhabitants of most urban centers in developing countries is a daunting task.
Some of the challenges faced by these companies include inappropriate practices in the management of the utility and the absence of a commercial-oriented culture. Several initiatives have been utilized as an alternative included the most notable being privatization. These privatization schemes involve contracting private companies to run the water utility. However, if the current optimism continues, it might signify the beginning of the public water utility companies improving their performance.
In achieving this goal of improved performance, it has been reported that an effective tool they may consider is strategic planning. One problem that has been rampant within most such water utility companies is the lack of training in strategic frameworks, concepts, or tools. The majority of staff though competent in specific fields, e.g., accounting, engineering, or human resources, lack training necessary to live these organizations beyond their current states.
Among the major challenges identified the strategic plans need to tackle immediately is the proper management of the available utility. It is reported as much as a third of the utility is lost in transit from inadequacies related to infrastructure. Revenue collection is also very poor, and this is compounded by a general lack of commercial orientation in the management of the public utility. In the study, several case studies are assessed to evaluate the benefit of strategic planning to the management of this utility in developing countries.
The conclusion is that strategic planning can go a long way in improving the management of water utilities in many areas in the developing world. However, a serious challenge of lack of adequate financial resources was also identified in the process. It may be prudent, therefore, to consider seeking grants or partnerships that can be directed to achieving this goal.
A third example to illustrate the importance and effect of good strategic planning is again gleaned from the management of public resources. In this example, the review of the literature identified the concept of urban planning and how strategic planning is an effective tool in this area. The past few decades have renewed the interest of most nations in urban planning, with the rise in urban populations being identified as the main cause for the trend. In addition to these increases in numbers, there is the emergence of new trends such as market economies and privatization.
Privatization was identified as an important factor behind the need to consider strategic urban planning in the developing world. The past few decades have seen increased privatization in the developing world shifting from public sector domination that was common in these regions. Another limiting factor identified was the institutional setbacks within the governments.
It was, therefore, suggested that there is a serious need to make changes within the institutions in the countries to enable shifts in management to occur within these countries. Just as was the case in the management of water, the lack of financial resources is also a setback in the context of urban planning. It is again hoped that through grants or partnerships, the developing nations can make in roads that will provide the much-needed finance to undertake this work.
In conclusion, the best model for use in a modern organization will depend on the factors identified in the course of the discussion. As mentioned in the report, a SWOT analysis may be easy and better for a small organization. The strategic group’s model can be used to plan for a business of any size. However, the creation and demarcation of the various groups will require some skills. The five factors model based on analysis of competition is also good, but the organization may be a non-profit organization thus exempt from the concept of profit.
It is for these reasons that the selection of a model for use in a modern organization without any additional information will most likely be inappropriate. However, since personal preference may be considered a choice for the purposes of making a selection, the report will opt to select the strategic group’s model as the best model for a modern organization. The reasons for this choice lie in the fact that it represents a realistic picture of the business and may facilitate better planning.