Readings in Management Studies

STRATEGIC PLANNING IN LOCAL GOVERNMENTS: CONCEPT,

CONTEXT AND APPLICATION

MAISHANU, M. M.

Abstract: The paper provides a general discussion on strategic planning regarding the
conceptual issues, the contextual background and practical application in Local
Governments. It generally reviews literature for this purpose and in addition to the
above, discusses the benefits of a good strategic plan and the characteristics it should
satisfy to make it functional and practical. The paper recognises the need for Local
Government administrators and other stakeholders to start thinking strategically as a
panacea to some of the problems that have bedevilled this important tier of
government. This paper believes that beyond the corporate bodies and other higher
tiers of government, the Local governments considering their importance and being
closer to the grassroots, should engage in proper planning with strategic focus.

INTRODUCTION

The need for organisations to plan for their future has never been in doubt. Planning is
in fact becoming more inevitable considering the unpredictable and dynamic
environment in which organisations exist today. Strategic planning is now in vogue
and embraced by virtually every type of organisation: big or small; public or private;
profit oriented or non-profit oriented etc. as a means of providing a road map for
setting targets and achieving same in the future. The idea of strategic planning is even
more important to Local Governments due to so many challenges facing them
particularly the unstable nature of their sources of revenue and the dire need to serve
their people at the grassroots.

This paper provides Local Government administrators and other stakeholders the
needed impetus to start thinking strategically as a panacea to some of the problems
that have bedevilled Local Governments. The paper is divided into seven sections.
The first section is this introduction. In section two the paper examines the history
and concept of strategic planning. Sections three and four focus on strategic planning
in Local Governments and its application. In Section five, the benefits of strategic
planning are discussed, and in the last section, the paper examines those
characteristics that a useful strategic plan should possess.

. Maishanu, M. M. is an Associate Professor in the Department of Business
Administration, Usmanu Danfodiyo University, Sokoto.
 Maishanu, M. M.

History and Concept of Strategic Planning

The word "strategy" comes from the Greek word strategos i.e stratos (the army) and
ago (to lead) referring to a military general. Therefore, the history of strategic
planning begins in the military. According to Webster's New World Dictionary,
strategy is "the science of planning and directing large-scale military operations, of
manoeuvring forces into the most advantageous position prior to actual engagement
with the enemy".

Strategic planning in organizations originated in the 1950s and was very popular and
widespread between the mid-1960s and mid 1970s, when people then believed it was
the answer to all problems, and corporate America was "obsessed" with strategic
planning. Following that "boom", strategic planning was cast aside and abandoned
for over a decade. The 1990s brought the revival of strategic planning as a "process
with particular benefits in particular contexts" (Mintzberg, 1994).

The focus then was on results or outcomes, rather than products or outputs. In the
past, many chief executive officers brushed strategic planning aside with such
statements as “Strategic planning is basically just a plaything of staff men,” or
“Strategic planning? - A staggering waste of time” (Gerstner, 1972). While today’s
successful organizations are not engaging in military combat; they are rather engaging
in large-scale strategic planning to achieve organizational goals and bottom-line
results - business leaders around the world have come to realize strategic planning is
an important organizational activity.

While planning is defined as a process of identifying or defining problems,

formulating objectives or goals, thinking of ways to accomplish goals, and measuring
progress towards goal achievements (Middleton, and Hsu Lin, 1975), individual
definitions of strategy vary between authors. Traditionally however, theorists have
considered planning an essential part of organizational strategy.

Strategic planning as concept can be seen in a variety of ways: Strategic planning is

a method through which an organization charts its future course, based on an
assessment of its current circumstances. It is a process of asking and
answering questions about the organization and formalizing the answers such
that they can be used as guiding principles for implementing future results. It
can also be described as the best possible use of available and/or limited
resources (i.e., time, funds, and staff) to achieve the greatest returns or pay-off
(i.e., outcome, results, or impact). It is also an approach to anticipatory
planning in order to reduce or overcome some uncertainties in decision-
making process by prioritizing actions or interventions which may produce the
most likely positive outcomes or results. It is the process of developing and

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implementing plans to reach goals and objectives. Strategic planning, more

than anything else, is what gives direction to an organization and is a tool for
finding the best future for an organization and the best path to reach that
destination.

Strategic planning consists of three (3) basic activities:

Strategic Analysis (What is the environment?): This is a determination of the current

strategic position both inside and outside the target organization. (SWOT
Analysis, Gap Analysis). In answering this question, the organization is forced
to take a hard look at itself, its external environment, its competitors, and the
threats and opportunities that these pose. Furthermore, the organization must
measure the gap between its goals or objectives and its capacity to attain those
goals or objectives

Strategic Choice (Where are you going?): This involves the generation and selection
of possible future directions, objectives and actions (Strategic Objectives,
Strategic Goals, Strategic Programming). Without a clear sense of direction,
including a mission statement, clarity about the scope of operations, and a set
of specific goals and objectives, an organization is set to go adrift.

Implementation (How do you get there?): This is about putting the choices into
action, which in turn changes the current position (Implementation,
Monitoring, Evaluation). What are the specific models that can enable the
organization to reach its goals, and how do the organization's resources need
to be allocated to make these models work?

STRATEGIC PLANNING IN LOCAL GOVERNMENTS

Strategic planning is an institution-wide effort through which a Local Government

authority establishes directions and creates strategic initiatives that mobilise limited
resources to fulfil the Local Government's mission, to achieve its goals, and to take
maximum advantage of trends in the internal and external environment. Through
strategic planning, Local Governments can take advantage of their opportunities and
deal with their challenges.

The idea of strategic planning comes from the corporate world, and any application to
the public sector requires adjustment and modification. In a Local Government
setting, strategic planning is a process through which a Local Government considers
broad issues of institutional direction, develops explicit goals and priorities, and
subjects these to open evaluation and debate. The ultimate purpose is to build a
consensual vision, and a plan to implement and achieve that vision. Through ongoing

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strategic planning, a Local Government continually renews its vision and reformulates
strategies for realizing that vision. Local Governments have always been involved in
planning, although the planning approach adopted could often be termed ad hoc, as it
emerged in response to "putting out some bush fire" that was starting to interfere with
the normal day-to-day work of administration (Meade: 2003).

Today, such ad hoc planning as Meade (2003) further argues, is proving inadequate as
a means of responding to the forces of change that are now impacting on Local
Governments. There are many powerful stimuli encouraging Local Government
leaders at all levels to replace short-term, ad hoc planning with long-term, "strategic"
planning as an ongoing, mainstream activity: among these stimuli is the increased call
on Local Governments to become more accountable for their expenditure, dwindling
financial resources, rapid technological advances, and changing demographics. A
strategic planning process can help prepare a Local Government to face these
emerging challenges.

APPLICATION OF STRATEGIC PLANNING

Strategic Planning has three main components: Plan development, plan execution, and
plan review. Many of the areas\steps within these components are similar in that all
three require a team concept that is based on: ensuring the player’s roles are defined,
educating team members about the process, and using quality communication when
interacting.

PLAN DEVELOPMENT

Plan development is the first component of strategic planning. During this stage, the
following steps should be completed.

1. Assess the Local Government’s history and significant accomplishments:

Develop a history of the Local Government. List important milestones that
brought it to where it is today. In order to help visualize how it has changed
over the years, include items where impact occurred in the Local
Government’s operations, such as: constructing a major building project,
rebuilding/renovating existing facilities, constructing roads and bridges etc.,
by dates and quantities/Naira, as appropriate.
2. Assess the Local Government’s current status: Determine the Local
Government’s current status by looking at such things as the state of the
facilities, infrastructure of the operations, the financial statements, the
demographics of the population, and so forth.
3. Evaluate the Local Government’s current governance structure: Review
the operations to determine how responsibilities are assigned, defining

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communications and authorities. Examine policies, procedures, and guides

available to determine the chain of command within the Local Government,
for oversight and communication between the management and other Local
Government members. Critical is the point of contact for the staff, and other
members of the Local Government community, to prevent misunderstandings,
duplications of effort, things falling through the cracks, etc.
4. Develop mission and vision statements: The Local Government's vision sets
out the reasons for its existence and the "ideal" state it aims to achieve; the
mission identifies major goals and performance objectives (Lerner: 2004). The
vision statement is the image or state to which the Local Government aspires.
It emphasizes the dream of where the Local Government will be at a specific
time. The mission statement is the Local Government’s purpose stated in a
memorable phrase. In short, a Local Government’s mission statement
describes the business it is in. It should be geared toward fulfilling the Local
Government’s purpose and what it is intended to do with some specifics
contained in the governing documents. Mission and vision statements should
not be a list of goals.
5. Determine operating values: Also called guiding principles, these values
state the Local Government’s intentions and expectations. They are used to
judge the Local Government’s policies and actions, as well as individual
conduct. Local Government should include values such as: the importance of
its stakeholders; commitment to quality and innovation; importance of
honesty; integrity and ethical behaviour; corporate citizenship; respect for the
employee and duty the Local Government has to its employees; and
importance of safety and protecting the environment, etc.
6. Perform needs assessment: Determine the needs of the Local Government by
analyzing its present state, addressing any critical issues, and identifying the
Local Government’s strengths, weaknesses, opportunities, and threats.

Determination of key result areas: Define five to ten areas in which the
Local Government must be successful in order to accomplish its mission,
based on stakeholder expectations.

Determine stakeholder expectations: Determine the stakeholders

[contractors, suppliers, and employees] expectations of the Local Government.
Group the expectations into five to ten key results areas.

7. Determine critical issues: Once the vision and mission are clearly identified,
the Local Government must analyze its external and internal environment. The
environmental scan, performed within the framework of the SWOT, analyzes
information about its external environment (economic, social, demographic,
political, legal, technological, and international factors), and internal

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organizational factors (Lerner: 2004). The Local Government should list the
critical issues that must be addressed for the Local Government to achieve its
mission and vision, based on an assessment of its strengths, weaknesses,
opportunities, and threats (SWOT).

Strengths: List the organizational attributes that promote the Local

Government’s ability to meet its mission and vision. Weaknesses. List those
organizational attributes that hamper the Local Government’s ability to meet
its mission and vision. Some examples include inadequate technology or use
of technology, lack of core competency training, poor service, and so forth.

Opportunities: List those external factors that would enable the Local
Government to meet its mission and vision. Some examples include
technological advances in needed areas, consolidating functions, etc. Threats.
List those external factors that would hamper the Local Government from
meeting its mission and vision. Some examples include political interference
from State, inflationary trend, unstable federal government revenue allocation
etc.

8. Define the roles of key players: Who will be the key people responsible for
each aspect of the strategic plan? What level of control will the management
have? etc. Role definition is extremely important so that efforts are not
duplicated—or neglected. This concept of team roles goes much deeper than
this discussion allows, especially in the areas of compliance and budgeting.
9. Educate and communicate the plan: Without education and communication,
participants can neither perform their roles nor effectively interact with each
other. Make sure that every player has the necessary documents and basic
knowledge to perform effectively. Further, ensure that each of the players
communicate with each other—provide updates as necessary and always ask
for others’ input. Better to catch a potential problem earlier rather than later. In
the event that there is a change in management, strategic planning unit should
also be sure to communicate their strategic plans to the new management, and
revise it, if necessary. Also, if the strategic plan calls for specific management
participation make sure it is spelt out clearly.
10. Listen and take notes: During the strategic planning process, it is important
for all parties to actively listen and take notes. Many type-A personalities, who
may be involved with the Local Government at any level, will want to address
issues quickly and efficiently. If they do this without listening to the strategic
planning unit, they may be executing a plan, but not a quality strategic plan.
11. Develop and prioritize long-range goals: Develop long-range goals to
address the critical issues identified through the needs assessment; then
prioritize those goals.

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12. Develop short-term goals and action plans: Establish short-term goals and
specific action plans along with scheduled completion dates.
13. Monitor the progress: Establish a monitoring process to assess the progress
made on both short-term and long-range goals.

PLAN EXECUTION

Plan execution is the second phase of strategic planning. In this step, a Local
Government puts its plan into action through the allocation of resources. This step has
three components:

1. Programs: Local Government programs serve as blueprints for converting

objectives into realities.
2. Procedures: Procedures are the specific sequence of tasks required to
complete the programs.
3. Budgets: A Local Government should prepare budgets to fund programs.
Instead, many development programs are based on their budgets. Simply put, a
Local Government should be strategy-driven, not budget-driven.

If the plan development phase was put together well, then the plan execution phase
becomes much easier. Many of the previously discussed items such as teamwork,
roles, communication, and education are important, and apply to the plan execution
phase.

Hold periodic meetings to review progress on short-term goals and plans. Without
periodic meetings and reviews, the Local Government will not move forward and
achieve its goals. Lastly, adaptability is crucial to the plan execution phase since all
plans will have flaws. If the team members are not adaptable, there may be simple
issues that will not be resolved in a reasonable manner, and the Local Government
will suffer.

PLAN REVIEW

Plan review is constantly required to improve the plan and ensure its execution. Part
of the plan review occurs naturally when there’s change in Local Government
management or changes in the law. In addition, plan review needs to be scheduled to
ensure the plan is meeting the Local Government’s goals. This can be achieved
through surveys, management review conferences, or discussions at meetings. If the
Local Government fails to update the plan, the plan will eventually fail the Local
Government. Industry experts suggest that Local Governments and their

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administrators should review their strategic plans annually, and completely overhaul
their strategic plans every three to five years.

USE OF A CONSULTANT

An outside consultant or professional facilitator brings impartiality, pointed questions,

and the facilitation skills needed to balance differences in opinions. Local
Governments should be aware that consultants will take different approaches to
strategic planning as no one right way exists. While hiring a consultant can be
expensive, he or she will greatly accelerate the Local Government’s learning curve
and help to ensure that the strategic planning process will complete a full cycle. If
budgetary restraints do not allow for such assistance, Local Governments may want to
consider using a consultant for the initial sessions, where an objective assessment of
the Local Government’s current position is necessary.

BENEFITS OF STRATEGIC PLANNING

Local Governments can benefit in a variety of ways through engaging in the strategic
planning process.  Strategic planning creates a framework for determining the
direction a Local Government should take to achieve its desired future; provides a
framework for achieving competitive advantage; allows all Local Government
constituencies to participate and work together towards accomplishing goals; raises
the vision of all key participants, encouraging them to reflect creatively on the
strategic direction of the Local Government (Hax, & Majluf, 1996,:32); allows for
dialogue between the participants thereby improving understanding of its vision, and
fostering a sense of ownership of the strategic plan; aims to align the Local
Government with its environment; and allows the Local Government to set priorities.

CHARACTERISTICS OF A USEFUL STRATEGIC PLAN

According to Cox (1997) a useful strategic plan exhibits many characteristics.

Specifically, it should be: a set of priorities i.e. setting priorities allows for the plan to
be adjusted according to changing needs or resources; It should be achievable,
measurable, and time sensitive - remember, it is better to do a few things well than
many things poorly. The plan should contain goals that are measurable and have
deadlines; it should also be flexible and responsive to changing conditions - the plan
is a road map that may contain unforeseen detours such as unexpected crises, new
opportunities, or changes in resources; it should be short and simple i.e. plans that are
more like a book will sit on a shelf; it should be a unit, not a menu and therefore a
useful plan is not a wish book, everything in the plan needs to be accomplished; it
should be a means to an end, not an end in itself and thus the plan is the process by
which it reaches its destination; it is not the destination; and it should be based on a

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three - to five - year period meaning it should be a living document that has a one-
year drop off and a new year added so that it always covers the same time period.

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