ROLE OF STRATEGIC PLANNING ON ORGANIZATIONAL GROWTH IN TELECOMMUNICATION INDUSTRY:

A STUDY OF MTN NIGERIA PLC IN LAGOS–ISLAND BRANCH, LAGOS

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The history of strategic planning began with the military. According to Webster’s New World Dictionary, strategy is “the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy” (Guralnic, 1986).

An understanding of why it is important for an organization to engage in holistic strategic planning begins with an understanding of what strategy means (Plant, 2009). Porter (1966) defined strategy as the creation of a unique position involving a different set of activities. Stewart (2004) stated that strategy underpins organizational survival by anticipating and dealing with challenges from competitors. However, Stewart added that in the public sector, the claims for the benefits of strategy are more low-key.

Hughes (2003) acknowledges that there are more problems and constraints in the public sector as compared to the private sector, yet public organizations could conceivably benefit from a strategic approach. Every organization faces two levels of strategic issues i.e. the corporate strategy and business strategy (Wyman, 2003). For government organizations, “corporate strategy” reflects a combination of the legislative mandate which defines the public policy objectives of the organization. The business strategy is a set of decisions about how to configure the organization’s resources in response to the demands, threats, opportunities, and constraints of the environment within the context of the organization’s history. When the strategic and operational levels of an organization are integrated in a common approach, a holistic strategic planning model is created (Plant, 2009). Strategic planning has been defined as a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is what it does, and why it does it (Bryson, 1995).

It provides a systematic process for gathering information about the big picture and using it to establish a long-term direction and then translate that direction into specific goals, objectives, and actions (Poister and Streib, 2005). It blends futuristic thinking and subjective evaluation of goals and priorities. to chart a future course of action that will ensure the organization’s vitality and effectiveness in the long run. “At best, it permeates the culture of an organization, creating an almost intuitive sense of where it is going and what is important (Osbome and Gaebler, 1992). A holistic strategic planning system is based on the assumption that all of the system elements are interrelated and interdependent.

However, strategic planning system alone is not adequate as putting plans into action is more significant (Mansor and Tayib, 2012). Strategic planning was introduced into the public sector 20 years ago, with much of the early literature focusing on local government applications. Strategic planning is an action-oriented type of planning that is useful only if it is carefully linked to implementation – and this is often where the process breaks down (Poister and Streib, 2005). Public managers may fail to link their strategic planning efforts to other critical decision-making processes. Mintzberg (1994) is one of the most vocal critics of strategic planning precisely because organization’s planning activities are too often completely divorced from performance measurement and resource allocation. Consequently, the Government Performance and Results Act of 1993 (for the United States of America) requires federal agencies to develop strategic plans and tie them to budgets and performance measures (Poister and Streib, 2005). As a result, many states have imposed similar results oriented requirements through legislation or execution mandates (Broom, 1995).

Even though many public managers have embraced strategic planning, it is unlikely to produce benefits they anticipate unless they drive it through budgeting, measurement, and performance management processes (Poister and Streib, 2005). Strategic planning in organizations originated in the 1950s and was very popular and widespread between mid-1960s to mid-1970s, when people believed it was the answer for all problems, and corporate America was “obsessed” with strategic planning.

MTN has received several awards and endorsements for its quality and innovative services. Barely six months of operations in Nigeria, the Nigerian Communications Commission (NCC) pronounced MTN, Nigeria’s best network based on quality of service indices. In November 2012, MTN again received another award from the NCC for Excellent Customer Service. Other notable awards include – Brand of the Year award, Fastest Growing GSM Company of the Year, Best Marketing Company, Most, Innovative Corporate Social Responsibility Company, Friendliest Tariff Mobile Operator, Best Telecoms Customer Service and Most Innovative Mobile Operator among others. But what this research would unravel at the end is the role of Strategic planning systems in the perceived growth of MTN organization.

The most critical question to consider is the reason(s) why an organization(s) should embark on strategic planning. Researchers have noted the following as the reasons for strategic planning exercise, namely: loss of market share, a loss of direction after merger or acquisition, when building a new focused team, when leaders are stressed, dwindling passion for work, lack of result orientation, when employees work independently instead of as a team, when leaders want to change the paradigm of an organization, lack of strategic direction, and boredom at work have been identified as factors or reasons why an organization might want to consider strategic planning.

1.2 Statement of the Problem

The problems of strategic planning are buttressed below:

First, there is no harmony on how and what to measure regarding effective strategic planning. Although it would be impossible to measure each strategic planning process carried out at workplaces. This unsettled issue of measurement items of strategic planning creates difficulties when applying the findings of such academic studies to the workplace and when comparing results across the studies.

Second problem stems from the level of measuring strategic planning at different levels within an organization and between organizations is likely to yield different results. In 1998, Delery studied that assuming that the use of practices across an organization is the same for all levels of employees is probably a false assumption which may negatively affect organization turnover.

Furthermore, the most imperative and critical problem is measuring the outcomes of strategic planning on organizational performance. However, there is a little theoretical consensus on basic definitions and technical issues. Kanter (1981) stated that the problem is not how to measure effectiveness or productivity, but what to measure; how definitions and techniques are chosen. Studies about the contribution made via strategic planning to the attainment of business and financial objectives have adopted measures or indicators of organization performance without prior conceptual questioning of what to measure.

1.3 Aim and objectives of the Study

The study examine the role of strategic Planning on organizational Growth. To be more elaborate, the research work will strive to achieve the following:

1. Determine the role of strategic planning systems on organizational Growth.
2. Examine the effect of strategic planning on organization’s turnover.
3. Examine the impact of strategic planning systems on the financial capacity of an organization.
4. Determine if the role of strategic planning will enhance the workforce of an organization.

1.4 Relevant Research Questions

The research questions are buttressed below:

1. Does Strategic Planning have any positive impact on organizational Growth?
2. Does strategic planning affect organization turnover?
3. Does the adoption of strategic planning affect the financial capacity of an organization?
4. How does the role of strategic planning enhance the overall workforce of an organization?

1.5 Relevant Research Hypotheses

To enhance the validity and reliability of this study, the following hypotheses would be formulated and tested.

Hypothesis l:

H_o: Strategic Planning has no significant impact on organizational Growth.

H₁: Strategic Planning has significant impact on organizational Growth.

Hypothesis 2:

H_o: There is no significant relationship between strategic planning and financial capacity of an organization.

H₁: There is significant relationship between strategic planning and the financial capacity of an organization.

1.6 Significance of the study

The study will focus on the role of Strategic Planning on organizational Growth in Telecommunication industry, a case study of MTN Nigeria. This study will help the researcher to determine the role of strategic planning in the Growth of organizations in Nigeria and become a reference point for them to understand how, when and why strategic planning should be done.

 1.8 Scope of the study

The study examines the role of strategic planning on organizational growth in telecommunication industry. The study is limited to the staff of MTN in Lagos-Island, Lagos.

1.9 Definition of terms

Strategic Planning: Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

 Organization: An organization is a social group which distributes tasks for a collective goal.

Influence: Influence is the action or process of producing effects on the actions, behavior, opinions, etc., of another or others.

Management: This is defined as the rational process if combining and utilizing the physical material and financial resource in an efficient and effective manner in order to achieve set objectives of the organization.

Performance: A performance, in performing arts, generally comprises an event in which a performer or group of performers behave in a particular way for another group of people, the audience. Choral music and ballet are examples.

Workforce: This has to do with the sum-total of individuals that works in a particular organization

 Project Overview

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