| dc.description.abstract | Strategic planning has its roots m war situations, where survival is key to success.
Modem business organizations have embraced this concept, and now most leading
organizations engage strategic planning managers to ensure survival and growth. The
concept of strategic planning has also taken root in public sector organizations, whose
objectives may not necessarily be profit oriented. In Kenya, parastatals are important
organizations used by the Government as conduits for service delivery to the populace.
Their goals are usually of a wider scale concerning both the organization and the country
as a whole, and their operations call for accountability to varied stakeholders. In order
that they achieve their objectives, or increase their chances of doing so, it is important
that strategic planning be done bearing in mind all the risks involved.
This research project set out to document the state of strategic planning, with particular
reference to risk measurement and management, in Kenyan parastatals. The key
objectives of this study were the identification of the risk assessment factors in strategic
planning and the establishment of the factors influencing the risk measurement practices.
A comprehensive review of available literature, both local and international was done.
Strategic planning, as presented by various authors, was analyzed with emphasis on its
application in public sector organizations. Various weaknesses of strategic planning, and
how to counter the same, were highlighted. Notably, it was established that strategic
planning can only succeed when contextual factors are adequately considered and
organizations take deliberate steps towards -identifying and managing all likely
consequences of making certain strategic choices.
The research findings on strategic planning in public sector organizations were for the
most part consistent with the findings of other studies on similar organizations and topics.
The findings further presented new insights on strategic planning risk factors. Strategic
planning risks were categorized according to organization-based factors, environmental
factors and planning factors. For analysis purposes, the parastatals were categorized
according to the nature of operations; being regulatory and sector support parastatals,
production and marketing parastatals, and finance, training, research & development and
allied services parastatals. The three groupings were compared for differences in strategic
planning practices. Significant differences were noted in choice of strategies, with
regulatory and sector support parastatals being significantly involved in various
strategies. The differences among the categories, in terms of the strategic planning risk
factors considered, were found to be statistically insignificant. However, slight
differences were noted when the mean scores were plotted on a likert type profile.
From the study, it was found that although strategic planning was widely practiced, there
was a further need to consider the risks that were involved. Recommendations were made
for enhanced risk-based strategic planning mechanisms and practices in public sector
organizations, as well as the identification of areas for further research. | en |
