Determinants of strategic planning in organizations working in turbulent environment: A case study of Kenya red cross society (KRCS)
The long-running debate between the 'rational design ' and 'emergent process ' schools of strategy formation has involved caricatures of firms ' strategic planning processes, but little empirical evidence of whether and how organizations plan. Despite the presumption that environmental turbulence renders conventional strategic planning all but impossible, the evidence from the corporate sector suggests that reports of the demise of strategic planning are greatly exaggerated. The goal of this paper is to fill this empirical gap by describing the characteristics and the determinants of the strategic planning systems of organizations faced with volatile, unpredictable business environments. In-depth a case study of the determinants of strategic planning systems of Kenya Red Cross Society identified fundamental changes in the nature and role of strategic planning. The findings point to a possible reconciliation of 'design ' and 'process ' approaches to strategy formulation. The study pointed to a process of planned emergence in which strategic planning systems provided a mechanism for coordinating decentralized strategy formulation within a structure of demanding performance targets and clear corporate guidelines. The study shows that these planning systems fostered adaptation and responsiveness, but showed limited innovation and analytical sophistication. The study also found that the some of the determinants of strategic planning include the leadership commitment, social-cultural climate, trends and past events and availability of resources. Keywords: determinants of strategic planning, turbulent environments and Kenya Red Cross Society.