Why the growing need for strategic planning

Managers find that the definition of the mission of their organization in specific terms (as advocated by strategic planning) gives their organization direction and purpose.

Strategic planning therefore results in better functioning of the organization because it helps managers develop a clear cut concept of their organization and this in turn makes it possible to formulate the plans and activities that bring the organizations closer to its goals.

Strategic planning helps managers to prepare for and respond to the increasingly complex and dynamic environment. They are able to anticipate changes in the environment and prepare for them. Certain environmental changes that continue to increase the need for strategic planning include:

    a)    Increasing rate of technological change

    b)    The growing complexity of managerial jobs

    c)    Growing complexity of the external environment

            e.g. politics, culture, society and environmental issues etc.

    d)    The time lag between current decisions and their future results.

With all these changes managers cannot afford to take a short term perspective of their organizations. They need to look more into the future and integrate it with the present if their organizations are going to survive.