A strategic plan is important for every organisation be it public, private, non-governmental or any other. A strategy helps to focus the organisations resources on the achievement of specific goals within a specified period of time. Different organisations use different strategic periods ranging from three years to 10 years, majority of which adopt five years’ period.
In Kenya, government agencies are required to have a strategic plan as part of the performance contract. This, therefore, makes it mandatory for them to have a current strategic plan. Strategic planning in the government is faced by many challenges, ranging from planning to implementation, and monitoring and evaluation.
In planning and implementation, there are many uncertainties, as government agencies do not have full control of their programs and resources. The strategic periods also largely overlap with the government of the day development agenda and focus. This calls for need for the government agencies’ strategic plans to be flexible.
In the government, strategic planning is also hampered by lack of internal competence in planning processes. The lack of internal competence leads to many agencies procuring for consultancy services in strategy development.
The use of consultants, particularly those without practical experience in public sector has more disadvantages than advantages. The disadvantages stem from the fact that; the consultants impose text books theories on government agencies.
The resulting strategic plans in many cases are usually not implementable and do not resonate well internally with staff. There is usually a lack of awareness and understanding on the strategy focus, therefore, strategic plans remain shelved, and business as usual continues.
During terminal reviews you realize that majority of achievements are outside the strategic objectives and initiatives. To get strategic planning right in the public sector, government agencies should develop internal competencies for strategic planning, implementation, monitoring and evaluation.
In terms of the strategy development process, government agencies should adopt the following process; First; carry out extensive external and internal environmental analysis. In external analysis, the agencies should analyze all the factors in the external environment that may support and or hinder the organizations’ achievement of their objectives.
There are various tools that have been documented for external environmental analysis. One thing that should not limit government agencies is trying to force external factors into some aspects as prescribed in the tools. Some factors may cut across the legal, economic, social, technological, political, or even environmental.
The most important thing is to ensure that all the necessary factors are exhaustively analyzed and put into consideration in scrutinising the opportunities and threats facing the organisation.
The government agencies should also carry out proper internal environmental analysis. In the internal environmental analysis, aspects for analysis should including; supporting the legal framework, government policies and guidelines, internal policies and procedures, governance and organisational structure, and resources both tangible and intangible.
Resources are critical in achievement of institutional objectives. Second; stakeholders and competitors’ analysis is another very important step that should be undertaken by government agencies in their strategic planning process.
This step is so important that it should not be overlooked. Stakeholders have interests and powers that largely influence the strategic direction of an organisation. Competitors also influence the strategic direction of organisations in very many ways.