Strategic planning and performance of civil engineering Construction firms in Nairobi

Abstract

The ever changing environment in which industries operate, necessitates an equal need for rapid recognition of appropriate strategies and opportunities to be exploited; threats to be countered and weaknesses to be overcome. Strategies that were relevant in yesteryears are quickly rendered obsolete by constant turbulence in the political, economical, social and technological arenas. Planning has become the axis on which this obsolescence may be countered if organisations wish to remain relevant, and maintain their competitive edge. Methodical planning narrows down contingencies that arise as a result of lack of preparedness or focus, - hence the value of Strategic Planning at different levels of the firm, and an analysis of the outcomes of such planning procedures based on acceptable industry indicators. Given the above, this study was conducted to -establish whether there was a relationship between strategic planning and performance within the Civil Engineering Construction Industry, with the focus on firms based in Nairobi. The study revealed that there were definite aspects of Strategic Planning adopted by Civil Engineering Construction firms, although the extent varied uniquely by firm. The study also revealed that there was a relationship between strategic planning and performance of such firms in the industry. Firms that committed to planning practices such as method statements for projects, and work plans, and monitoring indicators of change through environmental scanning often had a better project completion prospects than their counterparts whose investment in the same was minimal, haphazard or absent altogether