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This category covers the steps associated with the SPFP: each step is included in the framework presented in Figure 4.2 as a separate variable. All steps of the planning process were covered comprehensively under section (3.1). However, a brief description is provided next.

Initiation and agreeing on the SP process: agreeing that strategic planning is needed and desirable, and that all participants are on board, committed and supportive of the planning process and its various sequence of steps. In other words, agreement on the ‘plan to plan’ (Steiner, 1979)

Clarifying organisational mandate: clarifies what the organisation is formally and informally required to do or not to do, and what is forbidden by the organisation (Nelson and French, 2002; Bryson, 2004, p. 99)

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Vision development and communication: developing an effective vision that helps organisational members and stakeholders understand the overall direction of the organisation and why and how things should be done; also to circulate and communicate vision among internal organisation members and external key stakeholders (Bryson et al., 2001)

Mission development and communication: developing an effective mission that unifies purpose across tangible and intangible organisation’s intentions (Schein, 1997), and communicating mission to various stakeholders

Assessing the environment: the managerial activity of learning about and assessing the impact of events and trends in the organisation’s internal and external environments through the use of strategic tools (Hambrick, 1981). According to Clark (1997), strategic tools can be described as concepts, analytical frameworks, techniques and methodologies that assist managers in making informed decisions. In the present study, the use of a number of strategic tools was assessed. These are: SWOT; PESTEL analysis (political, economic, social, technological, environmental, and legal); critical success factor analysis; portfolio analysis; stakeholders analysis; value chain analysis; gap analysis; porter’s – five factors analysis; cost-benefit analysis; and benchmarking

Strategic issues identification: the identification of issues that may impact the strategic directions of the organisation, the likelihood of their occurrence, and the development of appropriate responses to these issues (Lozier and Chittipeddi, 1986)

Strategies and plans’ development: the creation of a set of strategies and associated plans (in response to strategic issues) that will effectively link the organisation with its environment to achieve organisational goals and a vision of success (Bryson, 2004, p. 186)

Monitoring and evaluation: the use of appropriate performance measures to track the completion of plans and projects associated with the strategic plan, and the evaluation of the outcomes of strategies and plans (Neely et al., 1997; Dyson, 2000)

In addition to the planning steps, the formality of the SP process is presented as a main variable under this category; a full description of SP formality is available under section (2.5).

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Formality of the strategic planning formation process (process formality): the extent to which the essential steps of the planning process are conducted (Armstrong, 1982). This type of approach formalised the link between strategic planning and the processes prescribed by most strategic management theorists (e.g. Ansoff, 1965; Andrews, 1971; Hofer and Schendel, 1978; Prescott, 1983).

4.1.1.3 Strategic plan document

The third category of variables is associated with the strategic plan document produced. These include quality criteria such as: objectivity and measurability, as well as the overall ‘strategic plan document quality’ as a main variable. A description of each quality criteria is available in section (3.2.4). In addition, the planning horizon is also included under this category as a main variable for this study. The planning horizon is covered comprehensively in section (3.2.3). Next, each variable is stated in italics and then defined.

Strategic plan document quality: the quality of the strategic plan document (SPD) is the degree to which the quality criteria (or quality dimensions) have been met. These criteria are: formality; objectivity; measurability; coverage; clarity; consistency and openness

Formality (SPD): the inclusion and documentation of all essential elements of a strategic planning document found in the related literature such as vision; mission; values; strategic issues; strategic objectives and strategies as well as the related performance measures (Whelan and Sisson, 1993). This variable is different than the SP formality (process formality) described previously

Clarity: the strategic objectives and strategies in the strategic plan are clearly stated

Measurability: the strategic objectives are measurable and can be monitored and evaluated

Objectivity: the desired outcomes are clearly stated and understood in the strategic plan (Hiraga et al, 2003)

Coverage: the objectives in the strategic plan cover all the critical factors identified in the analysis phase (Mellalieu, 1992)

Openness: the strategies in the organisational strategic plan are openly disseminated and not hidden (Whelan and Sisson, 1993)

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Consistency/flexibility: strategic consistency is the organisation’s commitment to stability by adopting a predictable, successful course of action, whereas strategic flexibility is the ability of the firms to respond and successively adapt to environmental changes (Evans, 1991)

Planning horizon: a firm’s planning horizon refers to the length of the future time period that decision-makers consider in planning (Das, 1987).

Figure 4.2: Research variable

Mission Statement Initiating and agreeing on a strategic planning process

Strategies and Plans Implementation Vision Statement Strategies and Plans Development Process Formality Assessing the Environment Monitoring & Evaluation Strategic Planning Formation Process

Process Output ‘Strategic Plan Document’ Organisational Mandate Openness Formality Coverage Clarity Measurability Objectivity Strategic Plan Document Quality Flexibility /Consistency Planning Horizon External Environmental Factors

Internal Organisational Factors

Level of Planning Planning Unit Organisation Size Organisation Age/Maturity Org. Culture Org. Structure Org. Mandate St. Planning Procedure Weak Strategic Thinking Leadership Commitmen t Processes & Regulations Planners’ expertise Resistance to Change IT Infrastructure Performance M. System Financial Resource s Political Influences Macro Economy Political Instability Turbulent Environmen t Rapid Tech. Develop. Linkage with other Plans Stakeholders Ambiguity Unavailability of Macro Information Stakeholders Variety Strategic Issues

103 4.1.1.4 Internal organisational barriers

Internal organisational barriers are internal organisational factors that influence the planning process and were noted in the literature as being barriers or potential barriers to the SPFP. A comprehensive coverage of each of the internal organisational barriers is presented in section (3.3.2). These internal barriers are:

Organisational culture: the organisation’s shared beliefs and assumptions that are learned unconsciously through group experience and which define in a basic fashion an organisation’s view of itself and its environment (Schein, 1997)

Organisational structure: a formal system of task allocation, coordination and supervision that are directed towards the achievement of organisational aims (Pugh, 1990)

Organisation’s mandate: an organisation’s reference statement that clarifies what the organisation is formally required to do or not to do. Further, an organisation’s mandate clarifies what is forbidden to the organisation (Nelson and French, 2002)

Strategic planning procedures: the process the organisation follow to formally plan ahead

Strategic thinking: the ability of organisational members to raise their thinking above the daily managerial processes and crises (Garratt, 1995)

Leadership commitment: the ability to focus the organisation’s effort in a strategic direction, create an agenda for strategic change, keep the organisation progressing towards the strategic vision, overcome resistance to change, facilitate resource requirements, and give managers and employees the power and authority they need to make decisions (Paul, 2004)

Organisational internal processes/regulations: the internal organisational business processes and process maps that link the operations of the organisation. And the regulations and policies that govern the functioning of organisational members

Planners’ expertise: planners’ ability to drive the strategic planning process and become catalysts for change and strategic planning missionaries within the organisation. Through facilitating the

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planning process, and making it interesting, simple, exciting, and relevant to the needs of various stakeholders (Whelan and Sisson, 1993)

Employees’ resistance to change: employees exercise passive and active resistance to change through speaking out, resigning, absenteeism, and disobedience (Larson and Finkelstein, 1999)

Lack of financial resources: shortage of organisational resources needed for future plans. Barney (1991) interpreted resources as being financial capital, physical capital, organisational capital and human capital

Information technology (IT) infrastructure: the information technology that the firm possesses, or the firm’s current commitment to technological development (Itami and Numagami, 1992)

Performance management system: the system available in the organisation to monitor the execution of plans and evaluation of strategies (Atkinson and McCrindell, 1997).