Strategic planning is different from the ordinary ad-hoc planning in which few disconnected projects are identified from time to time for implementation (Imobighe, 2014:2) .
It is integral with a comprehensive vision, in which all the vital elements of its resources including human and material, are effectively engaged towards the promotion of the goals and aspirations of the organisation.
The lack of strategic planning is ruinous to the vision, mission, and values of whatever an organization stands for.
In the highly competitive environment, the Nigerian auto-industry, strategic planning is a ‘do or perish’ process without which survival is very difficult in the face of fierce competition and available ‘alternatives’.
3. A Prologue
• Strategic planners are able to theorise,
advance, and execute plans for achievement of
set goals.
• Straegic plans involve the setting of vision,
mission, goals and objectives, guided by core
values of the organisations.
• This paper explains the critical role of strategic
planning, its meaning, approaches,
components, and applicability.
4. INTRODUCTION
“… strategic planning should be more about
collective wisdom building than top-down or
bottom-up planning.”
- Kim and Mauborgne (2004) In ‘Blue Ocean Strategy’
5. Background
• Strategic planning is different from the
ordinary ad-hoc planning in which few
disconnected projects are identified from time
to time for implementation (Imobighe, 2014:2) .
• It is integral with a comprehensive vision, in
which all the vital elements of its resources
including human and material, are effectively
engaged towards the promotion of the goals
and aspirations of the organisation.
6. Importance of Strategic Planning
• Strategic planning is an overall organisational
management activity aimed at setting
priorities, focusing energy and resources,
strengthening operations, co-opting and
galvanising both internal and external
stakeholders in attainment of set goals.
• It is an outcrop of, but similar to, the complex
and contingency-prone nature of the strategic
management process.
7. The Place of Strategic Planning in Strategy
• As the term and practice of strategy revolves
around the making and execution of plans or
methods for achieving an end.
• Strategic planning defines the strategy or
direction, including for decision making on
resource allocation in pursuance of set goals or
objectives (Bryson, 2018).
• It draws participation from various sources to
analyse organisational situations with its
environment (Mintzberg & Quinn, 1996; Simandan, 2018).
8. The Strategic Planner
• Strategic planners are middle to higher
organisational leaders involved in making,
translating, and setting the organisation’s vision
and mission for attainment of set goals and
objectives dictated by established core values.
• As a strategist, the strategic planner is a theorist
who has to devise and execute plans that should
advance and perhaps secure the goals specified by
policy (Ohmae, 1982; Gray, 2009).
9. Why Strategies Fail
• Strategy may sound romantic as every organisational
leader would assume or aspire to be a strategist but
“… too often leaders pour their energy and resources
into formulating strategy and spend too little time
figuring out how to implement that strategy
throughout the organization” (Edinger, 2012:1).
• Most strategies are created in nice resorts or
conference centers, by small groups of people turning
out beautiful paper work and slides which fail in the
boardroom.
• The truth mostly remains that most leaders fail—not
in the formulation of strategy, but in its
implementation (Edinger, 2012).
10. Diligence in Strategic Planning
• Diligence in strategic planning therefore
provides the break-point from where strategies
could transform into realities, with results.
• Figure 2 – Showing Diligence in Strategic Planning
• Source: http://www.fulltiltmarketing.net/2017/05/24/5-reasons-why-strategic-planning-is-essential-to-your-business/
12. Strategic Planning
• Strategic plan map out the direction an
organization is heading, how to get there, what is
required and making sure that such mission is on
right putting (Mastrodonato, n.d).
• It is an organisational management activity used
for setting priorities and directions toward set goal
based on vision, mission and core values of an
organisation.
• It is an instrument of getting things done with
specifications.
13. Vision and Mission
• Vision and mission are associated with future plan,
intention, direction, strategy or strategic plan often
expressed as ‘mission and vision statement’.
• Mission and Vision Statements (MVSs) usually imply
well thought-out ideas, mental picture, far-
sightedness, conceptualization, visualization,
foresight, forethought, imagination or prescience for
direction.
• MVSs are used for communicating set objectives and
direction in short, simple, but adjustable
pronouncements responding to situational dictates.
14. Goals and Objectives
• Goals are general guidelines explaining what
to achieve in an organisation usually placed on
long-term frame representing visions.
• Objectives focus on defining strategies and
implementation steps for attaining set goals.
• While goals tend to be generic, objectives are
more specific, measurable, and have time
frame outlining the “who, what, when, where,
and how” of reaching set goals.
15. Core Values
• Values are principles or standards of behaviour or
yardstick for judgement in making decision or
taking action.
• Ventures, activities or processes are tied to core
values which include the fundamental intents or
beliefs of organizations as guiding principles to
help determine the path and fulfillment of set
goals or objectives.
• Organisational systems, structures and processes
are generally ran on given principles or core
values.
17. Nature of Strategic Planning
• The nature of strategic planning requires team work,
group compliance and effective control respectively
expressed in the trio of collaboration, cooperation
and coordination, also known as the 3Cs of strategic
planning process (SPP).
• This triad of partnership forms the ‘three legs’ of the
SPP, without which no strategic plan can be
successful.
• The integration of collaboration, cooperation and
coordination (3Cs of SPP) is the essence of strategic
planning and continuation of its process.
18. Collaboration
• Collaboration requires working with others,
joining or pooling of resources or team work in
pursuance of common goals.
• It is “… self-generating or recursive as
different components seek to one another for
mutual benefits” (Marinez-Moyano, 2006:83).
• Strategic planners tend to share knowledge to
arrive at consensus or common ground,
especially when resources are finite and need
to be shared (Spence, 2006; Wagner & Leydesdorff, 2007).
19. Cooperation
• Cooperation denotes compliance to group task
as a result of liaison and formation of common
ground for mutual gains.
• Human nature allows for cooperation, if
handled properly (Ernest, 2011)
• It is a platform for unity of purpose,
accommodation of one another and sense of
obligations required by the strategic planner to
attain set goals, along with significant others.
20. Coordination
• Coordination provides required control
through directing, organizing, managing and
synchronizing for harmony in scaling complex
situations.
• Strategic planning process requires stability
and control to make things move accordingly.
22. Strategic Planning Modelling
• Strategic planning is a well-developed
organisational process conducted by means of
standardized models including vision-based or
goal-based, issues-based, alignment, scenario,
organic, and real time models.
• Modeling in strategic planning depends more
on strategic approach and analysis with two
major strands falling into the purview of this
paper as vision- and issue-based.
23. Vision-based or Goal-based Modeling
• Vision-based or Goal-based strategic planning
bars a linear approach cut out of established
vision or goal of an organization.
• It is based on linear thinking following known or
definite directions often tied to vision or goal
(dictionary.reference.com).
• This model harbours organization’s mission,
vision, goals, strategies, action plans, profiles and
implementation monitoring and evaluation (Ezendu,
2012).
24. Issues-Based Modeling
• Issues-Based strategic planning tends to
identify issues facing the organization, analyze
related ideas, prepare a plan, monitor
implementation and makes needed adjustment
(Lins, n.d; Ezendu, 2012).
• It inclines to details left out by the vision-
based planning process.
26. Stakeholder Buy-In as Strategic Process
• Strategic planning requires initiation, purpose,
needs, management, utility, commitment and
the process of getting it off the ground.
• It is also necessary for all Stakeholders to
agree in collaboration, cooperation and
subsequent coordination of its initial and
consequent process called ‘stakeholder buy-
in’.
27. Guidelines for Strategic Planning Process
DiNapoli (2003) stipulates guidelines for SPP to include
the following:
Getting organized by forming a Team for organizing
efforts;
Agreement on a plan process on where the
organization is, where is it wants to be in the future,
how to get there and how to monitor progress;
Putting the plan together for various sections of the
organization, how it will be organized and
communication strategies.
28. Other Guidelines
• Developing elements of the plan by use of
organization’s mission and vision statements,
goals, objectives and strategies;
• Application approaches based on challenges
and remedies; and
• Monitoring through performance measurement
schemes.
29. Smooth Conduct of Strategic Planning
• A smooth conduct of strategic planning require
deliberate but clear communication with all
stakeholders to initiate and agree on the process,
identify mandates, clarify mission and values, and
assess the organisation’s environment by means of
SWOT Analysis.
• Other aspects will be to identify the strategic issues at
stake, formulate strategies, review and adopt the
strategic plan(s), establish an effective vision,
develop an effective implementation process, and
reassess strategies and planning process (Loy, n.d.).
31. Benefits of Strategic Planning
• All organizations strive to set goals and move
towards achieving their objectives by way of
strategic planning.
• Organizations use strategic planning to assure
success and sustainable progress in pursuing their
missions, visions and core values (Boyden and Waldman,
2012) .
• As its benefits, strategic planning provides
direction; promotes strategic thinking and sense
of security; improves decision making; enhances
awareness and effectiveness; and develops
internal control.
32. Costs of Strategic Planning
• The lack of strategic planning is ruinous to the
vision, mission, and values of whatever an
organization stands for.
• In the highly competitive environment, the
Nigerian auto-industry, strategic planning is a
‘do or perish’ process without which survival
is very difficult in the face of fierce
competition and available ‘alternatives’.
34. The Settings
• Effective strategic planning is possible only when
an organisation, including its stakeholders, are
able to define core purpose in vision based on
shared values, and competencies.
• Other aspects include knowing what is
achievable, what is important and how to go about
it.
• These will provide strategic direction and clear
sense of mission.
• In this way, setting vision, mission, objectives,
goals, and core values, is possible as part of
strategic planning.
35. The Workings
• The strategic planner who is also a strategist and
theorist should be able to refer and reflect on the
take-off point of strategic management covering
strategy formulation, implementation, review and
control.
• The process of strategic analysis also provides the
specifics to subject the entire organisational
environment to scrutiny and identify critical
issues for consideration.
• All instruments and models mentioned earlier are
available for use by the strategic planner as
challenges are encountered.
36. STRATEGIC PLANNING FOR THE
AUTOMOTIVE INDUSTRY DEVELOPMENT
PLAN (NAIDP)
A Policy-based Strategic Planning
37. The Automobile Industry
The automotive industry is a strategic and catalytic
sector in economic development.
It creates employment, contributes to GDP, advances
auto-parts SMEs, provides components and services,
skills development, and technology acquisition.
It is foundational to other modern advanced
manufacturing activities, like commercial vehicle
production, manufacture of agricultural, mining and
railway equipment, military hardware and earthscape
light and heavy equipment.
38. The Automotive Industry
Development Plan (NAIDP)
The NAIDP was established to transform the
Nigerian automotive industry and attract
investment into the sector.
The Auto Sector is a key component of the
Nigerian Industrial Revolution Plan (NIRP).
The NIRP is a 5-year programme developed by
the Federal Ministry of Industry, Trade, and
Investments (FMITI) to diversify Nigeria’s
economy and revenues through industry.
39. The NAIDP Policy Document
The NAIDP will need to be in place for a
number of decades as is the case in other such
programmes around the world.
The NAIDP Policy Document an initial10-year
outline (2014-2024).
With administrative procedure for periodic
reviews essential for the success of such
complex industrial programmes.
40. Objectives of the NAIDP
NAIDP aims to curtail Nigeria’s almost total dependence
on imports and to meet a significant proportion of its
demand through domestic production.
Automotive industries around the world tend to be
integrated with significant trade in vehicles and
components between the automotive producing
economies.
The objective of the NAIDP is to move as rapidly as is
feasible to balance of payments neutrality and then into
surplus.
41. Pillars of the NAIDP
Industrial infrastructure
Skills Development
Standards
Investment Promotion
Vehicle Purchase Scheme
42. Application of a Policy Based Strategic
Plan to the NIADP
• There is the need to subject the NIADP to
strategic analysis in which the process of
policy-based strategic planning can be
executed.
• Strategic issues must be identified clearly
through SWOT Analysis before a strategic
plan is ascribed.
• The Retreat Participants as ‘internal
stakeholders’ are to perform a very short
exercise to reframe the vision and mission to
take new opportunities and face new
challenges.
44. Summary and Conclusion
• This paper describes, explains and explores the
background, importance and place of policy-
based strategic planning for the NIADP.
• It presents the settings and workings of vision,
mission, goals, and objectives in strategic
planning.
• The paper reviews the NIADP Policy Framework
Document and concludes that it needs to be
subjected to an on-the-spot strategic analysis for
strategic planning.
• The NIADP Retreat Participants are requested to
subject the Document to appropriate ‘strategic
treatment’in a short simulation exercise.
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