PA 244 – STRATEGIC PLANNING FOR PUBLIC ACTION

1. Why planning must be strategic?

Strategic planning is required to establish the direction of a business or organization. According
to Kaplan and Norton (2005), 85% of executive management teams expend less than one hour
per month discussing strategy, with the remaining 50% spending no time at all. According to the
report, 95% of a company's employees do not grasp its strategy. It's no surprise that 90% of
organizations fail to reach their strategic objectives. Before a company can realize the benefits
of its business strategy, it must plan to keep its strategy nimble and practical. According to
Glueck and Jauch (1980), planning must be strategic in order for a cohesive, comprehensive, and
integrated plan to guarantee that the enterprise's core objectives are met.

Cote (2020) outlines the benefits of strategic planning, the following are:
1. Strategic planning creates one, forward-focused vision;
2. Strategic planning draws attention to biases and flaws in reasoning; and
3. Strategic planning track progress based on strategic goals.

2. Some tool for strategic planning is presented as guide so as to facilitate them. Discuss them. Provide
its advantages and disadvantages include new tools if there are.

SWOT ANALYSIS (Strength, Weaknesses, Opportunities, Threats)

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a method for analyzing the
enterprise's internal strengths and weaknesses, as well as external opportunities and dangers. This
strategic planning tool's strengths include a company's competencies and resources, which enable it
to deliver value and produce competitive advantage. Its flaws highlight challenges that impede a
company's capacity to capitalize on its strengths. Opportunities provide an organization the
possibility to strengthen its competitive position. Competitors, individuals, organizations, regulatory
agencies, and other variables in the larger business environment can all pose threats.

OBJECTIVES AND KEY RESULTS

The objectives and key results (OKRs) framework is a prominent goal-setting framework used by
many big corporations. I've found the methodology to be incredibly successful for monitoring team
achievement, but it falls short when applied to individual individuals. An individual OKR is a goal
established for an employee or manager that measures progress using indicators that are relevant
and meaningful to the individual. Individual goals should be explicit, time-bound, attainable, and
focused on the commercial effect of their job. When implementing OKR, every organization should
first determine if individual OKRs are acceptable for their teams. It is typical practice, for instance,
for individuals in a development team to set individual OKRs in order to enhance cross-team
collaboration and responsibility. People working alone or in small groups, on the other hand, should
not be expected to engage in these OKRs if they do not require defined goals, as supervisors may
(Tariq, 2021).

PEST ANALYSIS (political, economic, social and technological)

PEST analysis is an examination of the political, economic, social, and technical variables in an
organization's external environment that might influence its operations and performance. The
PESTEL methodology entails gathering and presenting information on external variables that have or
may have an influence on company (Thompson and Martin, 2010).

The advantages of PEST analysis are the following:

1. It is a straightforward framework that is simple to grasp and implement.

2. It allows for a more comprehensive grasp of the business environment.

3. It pushes firms to think outside and strategically.

4. The most discussed benefit is that it lets a company to foresee future business hazards and
mitigate or eliminate their impact.

5. It also enables firms to identify and capitalize on opportunities. 

The disadvantages are the following:

1. Several PESTLE analysis users oversimplify the amount of data utilized for judgments - it's possible
to use too little data.

2. This is easy to become overwhelmed by the massive quantity of information available. As a result,
there is always the risk of acquiring too much data and performing too many data analytics, which
can lead to 'paralysis by analysis.'

3. Since a PESTLE analysis is based on assumptions, there is always the possibility of being incorrect.

4. Every now and again, an attitude does not work with PESTLE analysis. As a result, it must be a
regular practice.

5. The rapid rate of change makes it difficult to forecast changes, which may have an impact on the
organization in the future. 

It can be stated that PESTLE analysis is a great tool for businesses that can be leveraged for several
purposes. It brings information about the possible impact of the six external factors on an
organization. This makes it easier for organizations to prepare for any sort of problems caused by
these PESTLE factors.
The Balanced Scorecard

Kaplan and Orton (1992) stated that the the balanced scorecard allows managers to look at the business
from four important perspectives. It provides answers to four basic questions:

The Balanced Scorecard Links Performance Measures

1. What do our consumers think of us? (From the customer's standpoint)

2. What do we need to excel at? (internal viewpoint)

3. Can we keep improving and adding value? (From an innovation and learning standpoint)

4. How do we seem to our shareholders? (From a financial standpoint)

The balanced scorecard reduces information overload by minimizing the number of metrics utilized
while providing senior management with information from four distinct viewpoints. Companies seldom
suffer from a lack of metrics. More often than not, they continue to add additional measures anytime an
employee or a consultant makes a good proposal. 

Several businesses have already implemented the balanced scorecard. Their early experiences with the
scorecard have shown that it fulfills a variety of managerial requirements. First, the scorecard combines
several seemingly unconnected parts of a company's competitive strategy into a single management
report: becoming customer focused, cutting reaction time, enhancing quality, stressing teamwork,
lowering new product launch timelines, and managing for the long term.

Second, the scorecard protects against under-optimization. The balanced scorecard forces top managers
to analyze all relevant operational indicators simultaneously, allowing them to determine whether
improvement in one area may have come at the price of another. Even the best-laid plans may go
wrong. Companies, for example, can cut time to market in two ways: enhancing the management of
new product launches or releasing only goods that are incrementally different from existing items. Setup
costs can be reduced by either shortening setup periods or increasing batch sizes.

The Advantages of a balanced scorecard are the following:

A balanced scorecard, in general, assists businesses in focusing on performance assessment in more

than one area. It considers elements that may be neglected in a firm, including as internal procedures
and existing client satisfaction. 

1. Business strategy is given structure as a result of the balanced scorecard

Various departments within a company may have their own methods of monitoring performance and
determining what metrics are essential to them. Different leaders and departments can still individualize
their performance measurement using a balanced scorecard, but it still fits inside a standardized
structure that can be understood across the firm. It provides a uniform yardstick for measuring
achievement for everyone in the firm.

2. Ease of communication

When everyone speaks the same language, communication between team members and departments
becomes easier. To put it another way, having a simplified performance assessment system makes it
easier to discuss strategy and progress throughout the business.

3. Facilitates better alignment

With a balanced scorecard, members of the organization can easily link their objectives and goals at
different levels of the company. It takes the guesswork out of trying to understand everyone’s
responsibilities and it gets teams and departments synced up under one structure. This also leads to
having a much clearer picture over projects and initiatives, which hopefully turns into a shorter
turnaround time with more optimal results.

4. Connects the individual worker to organizational goals

 4. Connects the individual worker to the aims of the organization. Individual employees may discover
that seeing the bigger picture behind the goals and targets they're aiming for improves their personal
performance. It also has the added benefit of assisting employees in finding a sense of purpose inside
the firm, therefore keeping them interested in their job.

The Disadvantages of a balanced scorecard are the following:

While there are several benefits to establishing a balanced scorecard system in your business, there are
also possible drawbacks and downsides.

1. It must be customized for the company.

A balanced scorecard is designed to give a framework for work, but it will still need to be tailored for any
firm that uses this approach. This can consume a significant amount of time, and while examples are
useful, they cannot be replicated identically owing to the unique demands of each organization.

2. It may become complex.

The framework of balanced scorecards requires some time and effort to grasp. There are innumerable
materials and case studies to read, and it's easy to become overwhelmed by the many different
methods to use this strategy.

3. It necessitates a large amount of data.

Balanced scorecards frequently demand managers and team members to provide information, which
entails documenting data. Many people dislike this because they find it monotonous, and it may also get
in the way of accomplishing the necessary work to fulfill objectives.
3. VMGO sets the direction, targets, and indicators for PAPs of any organization. Why?

The necessity of developing a vision and purpose for a business is critical for strategic direction. It assists
the employee in understanding the organization's mission and the basic principles by which it is
controlled. It is an essential component of a company's strategy since it helps to determine priorities,
allocate resources, and guarantee that everyone is working toward shared goals and objectives,
therefore giving a road map for the future.

A vision and mission statement are the result of any company's planning and strategy, and they may
best be defined as the organization's compass and destination, respectively. However, we may argue
that vision and mission statements are the foundation of businesses since failing to do so is akin to
embarking on a trip without knowing which path to go or where to end up.

4. Discuss the importance of BDP in local planning.

The plan is largely intended at presenting and appreciating the current condition by the barangay people
themselves, as well as assessing the situation using standards and other ways of assessment to identify
needs and associated solutions.

Community development is a process that is accompanied by community members. It is a process by

which local people may not only create employment, revenue, and infrastructure, but also assist their
community become fundamentally better prepared to adapt (Flora and Flora, 1993).

It is claimed that community development improves communities' ability to collectively make better
decisions about the use of resources such as infrastructure, labor, and knowledge; however, should
people expect the same results from community development, namely a spectacular and rapid increase
in production, income, and facilities for better living?

Both the public and nonprofit sectors have shifted away from comprehensive community-based
planning techniques in favor of the quick fix of a project-by-project development approach throughout
the years (Shiffman and Motley, 1990). Without a doubt, these efforts have directly benefitted some
low-income individuals and families. Most of the time, however, they contribute nothing to the
economic life of the town in which the project is constructed.

Furthermore, in order to successfully address issues of community disorganization and poverty, as well
as to increase involvement in the community regeneration process, we must analyze the initially
envisioned community development model and its principles in today's spotlight.

5. The rationalized local planning system is in cyclical process. Why?

Planning is frequently regarded as a continuous or, at the very least, cyclical activity. This has not
occurred in the Philippines, owing in part to the prevailing habit of seeing planning as a project with a
time start and time conclusion. The common perception of planning is that it is a process of creating the
plan document, a function that is more simply leased out to external consultants thought to be more
technically capable than local inhabitants. For planning to be really continuous, it must be a regular
function of the local planning organization. One key function of the local planning organization is to
"coordinate, monitor, and assess the execution of development plans and projects" (Sec. 109, a, 5, RA
7160). The critical importance of monitoring and evaluation (M&E) in linking one planning cycle to the
next lies in the generation of new information derived from the assessment of the impacts of plans,
programs, and projects as they are implemented, the effects of regulatory measures as they are
enforced, and the outcomes of developments in the area that were not under the control or influence of
the local planning system.

The argument is that the cycle planning enabled by an M&E system does not need the creation of new
successor plans every time. The revision of specific aspects of the preceding plan does not make the
process any less circular or ongoing.

When planning structures and procedures are in place in an LGU, there is without a doubt a rise in the
degree of well-being of the locality's population. As a result of both governmental and private sector
investment, there is a commensurate change in the nature and stock of physical resources and the
environment. However, measuring such changes is a challenging undertaking. Impact monitoring and
assessment are not yet a well-established practice in Philippine planning. Nonetheless, this action is
critical for establishing a cycle planning system. To be sure, project monitoring and evaluation technique
is already well recognized and frequently utilized in this nation. However, the methodology for
measuring the impact of projects and other development activities on the social, economic, and physical
environment has yet to be developed and implemented in order to provide feedback information as a
basis for revising, amending, or reformulating long-term and medium-term plans. More research on this
critical link in the planning process is required at this time. In the meanwhile, better management of
planning data and information can help to alleviate some of this stress.
REFERENCES

Barangay Development Council Plan

Cote, C. (2020, October 6). Why is strategic planning important?: HBS Online. Business Insights - Blog.
Retrieved November 7, 2021, from https://online.hbs.edu/blog/post/why-is-strategic-planning-
important.

Flora, C.B and J.L. Flora. 1993. “Entrepreneurial Social Infrastructure: A Necessary Ingredient. “Annals of
the American Academy of Political and Social Sciences 539: 48-58.

Jauch, L. R., Osborn, R. N., & Glueck, W. F. (1980). Short term financial success in large business
organizations: The environment‐strategy connection. Strategic Management Journal, 1(1), 49-63.

Kaplan, R. S., & Norton, D. P. (2005). The office of strategy management. New York.

Shiffman, R. and Motley, S. 1990: Comprehensive and Integrative Planning for Community Development.
University of Nebraska Omaha. New York, New York.

Thompson, J. and Martin, F. (2010). Strategic Management: Awareness & Change. 6th ed. Cengage
Learning EMEA, p. 86-88, 816

Tariq, H. (2021, May 28). Council post: The benefits and drawbacks of individual okrs (and how to set
effective ones). Forbes. Retrieved November 7, 2021, from
https://www.forbes.com/sites/forbescommunicationscouncil/2021/05/28/the-benefits-and-drawbacks-
of-individual-okrs-and-how-to-set-effective-ones/?sh=5bb6f1e07e8e.