The Relevance Of Strategic Planning On Organizational Growth In The Public Sector: The Case Study Of Ghana Shippers’ Authority

The study sought to examine the relevance of strategic planning on organizational growth in the public sector. Business organizations operate in constantly changing and competitive environment. To survive, organizations must respond and adjust to the social, economic, and political environmental changes that occur. Unfortunately, in most organizations especially in the public sector, strategic plans are not carried out and implemented properly due to lack of appreciation and knowledge of the relevance of strategic planning on organizational growth. The question that arises is; why is strategic planning relevant to the growth of organizations in the public sector? To answer this question, 50 questionnaires were administered to 50 staff of the Ghana Shippers‟

Authority, randomly selected from the Head office in Accra and Tema branch office. Microsoft Excel and simple statistical methods like frequency distribution tables and charts were used to analyze the data collected. The findings of the study revealed that, in the country organization in the public sector have seen the need to formulate and implement strategic plans. The process of formulation and implementation of strategic plans in the public sector is similar to the existing process of setting objectives, scanning, selecting strategies, implementation and evaluation in the private sector. The study found that organizations in the public sector face challenges in the implementation of their strategies due to long processes of approval by the approving authorities, the delay in release of funds, the shortage of skilled staff in some specialized areas, the lack of commitment from officials, strict adherence to procurement process. The findings of the study thus, lead to the overriding conclusion that strategic planning was relevant and had a positive impact on the growth of organizations in the public sector

 

TITLE PAGE…………………………………………………………………….…..……i

DECLARATION ii

ABSTRACT iii

DEDICATION iv

ACKNOWLEDGEMENT v

TABLE OF CONTENT vi

LIST OF TABLES xi

LIST OF FIGURES xii

LIST OF APPENDICES…………………………………………………...……. …xiv

CHAPTER ONE 1

INTRODUCTION 1

1.1   BACKGROUND TO THE STUDY 1

1.1.1 PROFILE OF THE GHANA SHIPPERS‟ AUTHORITY 3

1.2   STATEMENT OF THE PROBLEM 4

1.3   OBJECTIVES OF THE STUDY 4

1.4   RESEARCH QUESTIONS 5

1.5   RELEVANCE OF THE STUDY 5

1.6   SCOPE/LIMITATION OF STUDY 6

1.7   METHODOLOGY 6

1.8   OEGANIZATION OF THE STUDY 6

CHAPTER TWO 8

LITERATURE REVIEW…………………………………………….…………………8

2.0   INTRODUCTION 8

2.1   DEFINITION OF SOME RELEVANT TERMS 8

2.1.1 RELEVANCE 8

2.1.2 STRATEGIC PLANNING 8

2.1.3 ORGANIZATION 9

2.1.4 GROWTH 9

2.1.5 PUBLIC SECTOR 9

2.1.5.1 PUBLIC ENTERPRISES IN GHANA 10

2.2   DEFINITION AND CONCEPT OF STRATEGIC PLANNING 11

2.3   THE STRATEGIC PLANNING PROCESS 13

2.4   STRATEGIC PLANNING CHARACTERISTICS 16

2.5   AIMS OF STRATEGIC PLANNING 17

2.6   RELEVANCE/BENEFITS OF STRATEGIC PLANNING 18

2.7   CHALLENGES IN THE IMPLEMENTATION OF STRATEGIES……….. 21

2.8   GUIDELINES TO ENSURE SUCCESSFUL PLANNING AND IMPLEMENTATION

2.9  STRATEGIC MANAGEMENT 25

2.9.1 THE FIVE TASKS OF STRATEGIC MANAGEMENT 26

2.10 STRATEGY 26

2.10.1 STRATEGY AND COMPETITIVE ADVANTAGE 27

2.10.2 THE FIVE GENERIC COMPETITIVE STRATEGY……………..……….27

2.11  ORGANIZATIONAL STRATEGY 29

2.11.1 CORPORATE LEVEL STRATEGY 30

2.11.2 FORMULATING CORPORATE LEVEL STRATEGY 31

2.11.2.1 PORTFOLIO STRATEGY 31

2.11.2.2 THE BCG MATRIX 32

2.11.3   BUSINESS LEVEL STRATEGY 33

2.11.3.1 PORTER‟S COMPETITIVE FORCES AND STRATEGIE 34

2.11.3.2 PRODUCT LIFE-CYCLE 35

2.11.4 FUNCTIONAL LEVEL STRATEGY 36

2.11.5 OPERATIONAL LEVEL STRATEGY 37

2.12   TYPES OF CORPORATE DIRECTIONAL STRATEGY 37

2.12.1 GROWTH STRATEGIES 38

2.12.2 STABILITY STRATEGIES 39

2.12.3 RETRENCHMENT STRATEGIES 40

2.13 CORPORATE STRATEGY FORMATION 41

2.14 STRATEGY IMPLEMENTATION AND EXECUTION 41

2.15 CORPORATE STRATEGY EVALUATION 42

2.16 THE FACTORS THAT SHAPE A COMPANY‟S STRATEGY 43

2.17 IMPACT OF STRATEGIC PLANNING ON ORHANIZATIONAL GROWTH: A CRITIQUE

CHAPTER THREE 49

RESEARCH METHODOLOGY 49

3.0 INTRODUCTION 49

3.1 RESEARCH SCOPE 49

3.2 RESEARCH DESIGN 49

3.3 POPULATION AND SAMPLE SIZE 49

3.4 SAMPLING TECHNIQUE 50

3.5 DATA GATHERING INSTRUMENTS 50

3.6 SOURCES OF DATA 51

3.6.1PRIMARY DATA 51

3.6.2 SECONDARY SOURCES 51

3.7  ANALYSIS AND PRESENTATION OF DATA 51

3.8  LIMITATION OF METHODOLOGY 51

CHAPTER FOUR 53

ANALYSIS AND DISCUSSION OF DATA 53

4.0 INTRODUCTION 53

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS 53

4.1.1 GENDER OF RESPODENTS 53

4.1.2 EDUCATION LEVEL OF RESPONDENTS 54

4.1.3 DEPARTMENTS OF RESPONDENTS 55

4.1.4 CURRENT POSITIONS OF RESPODENTS 56

4.2 STRATEGIC PLANNING IN GHANA SHIPPERS‟ AUTHORITY……..…....57

4.2.1 Response to whether Ghana Shippers‟ Authority has a strategic plan 58

4.2.2 Response to the relevance of strategic planning 58

4.2.3 Response to whether respondents have access to the plan document 59

4.2.4 Response to the effectiveness of the strategic plan 60

4.2.5 Response to the existence of a planning unit 61

4.2.6 Response to the strategic planning process in the Ghana Shippers‟ Authority.. 62

4.2.7 Response to the challenges of strategy implementation 63

4.3 THE RELEVANCE OF STRATEGIC PLANNING IN THE GROWTH OF GHANA SHIPPERS‟ AUTHORITY

4.3.1Strategic plan ensures co-operation towards a common goal 64

4.3.2 Strategic plan can build strong teams 65

4.3.3 Strategic plan can ensure better decision making 66

4.3.4 Effective communication can be derived through strategic planning 67

4.3.5 Strategic roles can be clarified through strategic planning 68

4.3.6 Strategic plan is a source of motivation and commitment for staff 69

4.3.7 Strategic planning guides priority use of resources 70

4.3.8 Effective human resource management can be achieved through strategic plan..71

4.3.9 Growth can be achieved through strategic plan implementation 72

4.4  TOTAL RESPONSE RATE 74

CHAPTER FIVE 75

FINDINGS, CONCLUSION AND RECOMMENDATIONS 75

5.0 INTRODUCTION 75

5.1 SUMMARY OF FINDINGS 75

5.2 CONCLUSION 77

5.3 RECOMMENDATIONS 78

5.4 DIRECTIONS FOR FUTURE RESEARCH 79

REFERENCES 80

APPENDIX I (SUEVEY QUESTIONNAIRE) 83

 

1. Table 4.1:Gender composition of respondents………………………………….54 

2. Table 4.2:Educational level of respondents …………………………………….55 

3. Table 4.3: Departmental distribution of respondents……………………………56 

4. Table 4.4: Current positions of respondents…………………………………….57 

5. Table 4.5: Response to whether the Authority has a strategic plan……………..58 

6. Table 4.6: Response to the relevance of strategic planning…………………..…59 

7. Table 4.7: Response to whether staff has access to the strategic plan document.60 

8. Table 4.8 Response to the effectiveness of the strategic plan………………..….61 

9. Table 4.9: Response to whether the Authority has a planning unit……….……62 

10. Table 4.10 Total response rate………………………………………………….74 

 

1. Figure 2.1: Strategic planning process 16

2. Figure 2.2: Aims of strategic planning…………………………….………..……18 

3. Figure 2.3 The five generic competitive strategies………………………..……..29 

4. Figure 2.4: Hierarchy of Organizational strategy………………….…………….30 

5. Figure 2.5 The BCG Matrix………………………………...................................33 

6. Figure 2.6 Porter‟s five competitive forces…………………………….………..35 

7. Figure 2.7 The product life-cycle………………………………………….……36 

8.  Figure 2.8: The grand strategies 38

9.  Figure 4.1: Response to whether strategic planning ensures co-operation towards a common goal 65

10. Figure 4.2: Response to whether strong teams may be built through strategic planning…………………………………………………………………………66 

11. Figure 4.3: Response to whether strategic plan ensure better decision making...67

12. Figure 4.4: Response to whether effective communication may be derived from strategic planning ………………………………………………..……68 

13. Figure 4.5: Response to whether strategic roles may be clarified through strategic planning…………………………………………………………………………69 

14. Figure 4.6: Response to whether strategic plan is a source of motivation and commitment for staff ………………………………………………….…….….70 

15. Figure 4.7: Response to whether strategic planning guides the priority use of resources…………………………………………………………………..…….71 

16. Figure 4.8: Response to whether an effective human resource management can be achieved through strategic planning……………………………………….……72 

17. Figure 4.9: Response to whether growth can be achieved through implementing a strategic plan……………………………………………………..………………74 

APPENDIX 1: SURVEY QUESTIONNAIRE………………………………….. 83

 

Every organization wants to survive and grow in a constantly changing and competitive environment. To do so, it must respond and adjust to the social, economic and political environmental changes that occur.

The environments of public organizations according to (Bryson, 2004) have become not only increasingly uncertain in recent years but also more tightly interconnected; thus changes anywhere in the system reverberate unpredictably, and often chaotically and dangerously throughout the environment. This increased uncertainty and interconnectedness requires a fivefold response from public organizations. First, these organizations must think strategically as never before. Second, they must translate their insights into effective strategies to cope with their changing circumstances. Third, they must develop the rationale necessary to lay the ground work for the adoption and implementation of their strategies. Fourth, they must build coalitions that are large enough and strong enough to adopt desirable strategies and protect themselves during implementation. And finally, they must build capacity for ongoing management of the strategic change.

Strategic planning can help leaders and managers of public organizations to think, learn and act strategically, (Bryson, 2004). The idea of strategic planning emerged in corporations that wanted to have a strategy as to how to maximize their profits. Today, the motivation is manifold and differs according to the type of organization.

 

The need for an organization to proactively respond to environmental challenges has now become imperative, as it offers the organization a competitive edge in today‟s business world. Thus, every organization regardless of its size must have some form of a strategic plan.

The public sector have increasingly gained the attention of various developmental strategies especially in developing countries as a key sector for the advancements needed in the socio-economic emancipations of countries in Africa. The role of the state and its institutions has been identified as a key partner to the private sector in carrying out the developmental agenda. Indeed the public sector has been under scrutiny to adopt the approaches of the private sector towards growth and development in all sectors of the economy.

The public sector, in developing countries, can no longer approach developmental issues as before, especially, given the advancements in business management made in the world and the expected fast growths needed for quicker transformation in their economies. As a result, various development experts have now resolved to impress on governments to strategically plan and roll out a coordinated and comprehensive strategy to harness their business potential as a pivot for growth.

In recent times Government of Ghana has embarked on public sector management reforms with the view to improving their operations and creating value for their operations. As a result, a Ministry of Public Sector Reforms was created to drive this agenda and work closely with the National Development Planning Commission (NDPC) mandated to coordinate the development framework of the Country.

The Ghana Shippers‟ Authority (GSA), one of Ghana‟s public institutions in the maritime industry has over the years adopted strategic planning, to give it direction for growth.

 

Currently it has developed a strategic plan for the period 2009-2013. The objective of the plan takes its source from its mandate of effective and efficient management of commercial shipping with a view to promoting and protecting the interest of the shipper in relation to port, ship, inland transportation problems and provision of ancillary services.