Strategic Planning and Performance of Public Benefit Organizations in Nakuru County, Kenya

Abstract

This study was motivated by the challenges faced by organizations lacking strategic planning, such as employee misalignment, inefficient resource allocation, and reactive decision-making. The objective was to uncover insights that could assist these organizations in establishing clear priorities, enhancing decision-making, and fostering collaboration to contribute to improved performance and competitiveness in the public benefit landscape. Anchored on industrial organization economic theory and resource-based theory, this research focused on the strategic planning and performance of public benefit organizations (PBOs) in Nakuru County, Kenya. The independent variables included strategic formulation, strategic communication, allocation and alignment of resources and strategies, and control and review of strategies, while the dependent variable was organizational performance. Employing a cross-sectional descriptive design, the study surveyed 46 Kenyan PBOs in Nakuru County. Primary data was collected through structured questionnaires, with 92 responses obtained from 2 participants in each PBO. Descriptive and inferential statistics were utilized for the analysis. This research aimed to contribute valuable insights to the understanding of the relationship between strategic planning aspects and organizational performance in the context of PBOs in Nakuru County, Kenya. The regression model indicated that 80.3% of organizational performance variance was explained by control and review of strategy, allocation and alignment of resources and strategies, strategic formulation, and strategic communication. This demonstrated a robust model fit, confirmed by the model's statistical significance as determined by the ANOVA test. Strategic formulation positively influenced PBOs in Nakuru County, supported by consensus and a significant effect on organizational performance. While strategic communication had a favourable outlook and a positive correlation, its effect on organizational performance was statistically insignificant. Allocation and alignment of resources and strategies showed moderate agreement but yielded a statistically insignificant effect on organizational performance. Control and review of strategies consistently played an important role, with both correlation and regression results indicating a significant positive relationship with organizational performance, emphasizing its crucial role in organizational performance. The study recommended that policymakers should prioritize the development and implementation of robust strategic planning frameworks for Nakuru County's Public Benefit Organizations (PBOs). Emphasis should be placed on regular revisions, adaptation to dynamic environments and the integration of robust control mechanisms. Policymakers were urged to establish monitoring systems and collaborate with industry experts for effective strategic formulation. Additionally, transparent communication environments, training, and collaborations with communication professionals were recommended, particularly for PBOs to foster a culture of strategic thinking, enhance resource allocation processes, and ensure a transformative shift towards strategic agility and adaptability.