Survey of strategic planning and performance of public corporations in Kenya

Abstract

Public corporations have been criticized for inefficiencies and mismanagement. They are said to contribute to. many of the problems hindering economic growth such as public sector deficits, domestic and foreign borrowing and misallocation of resources. In as much as public corporations are important to the Kenyan economy, little research has been done on them. This study therefore addressed the question: 'What is the mode of strategic planning in public corporations and how does this affect performance?' Objectives of the study were to determine the mode of strategic planning in public corporations in Kenya and to find out whether the mode of strategic planning in public corporations is related to the performance of such corporations. The study was a survey. The population of interest was all ninetytwo public corporations in Kenya. Primary data was collected using a semi-structured questionnaire (refer appendix 2). Both structured and unstructured questions were be used. The basic data collection method was through "the drop and pick later technique. The data ~ was then analysed using descriptive statistics such as percentages, frequency tables, mean scores, standard deviation and crosstabulation. This was then interpreted to show the relationship between strategic planning and performance. From the results of data analysis, it was found that the mode of strategic planning in public corporations was planned and deliberate. Public corporations had formal control and plans were implemented in rather stable environments. Where plans were documented, implemented, employees were aware of their existence, planning departments existed and planning responsibilities clearly assigned, performance from qualitative factors was very good. Where none of the above existed, performance was mixed i.e. very good in some performance indicators and not very good in others. It was not possible to relate financial performance to the mode of strategic planning due to lack of financial performance information. The recommendations were made with a view to improving strategic planning and performance in public corporations. Employees need to be sensitised on the objectives of the public corporations once they have been developed so that everybody works towards their achievement. Public corporations could lobby to the Government to have limited or no government control in their respective organizations so that they can respond adequately to opportunities and challenges in their environment. There is need for public corporations to enhance collection of competitor information, which they can use to gain a competitive edge. They need to consider use of various business analysis tools during planning. There is need to redefine the roles of both the public corporations' chairmen and the directors and to rationalize appointments to boards to ensure they are appointed on the basis of competence and professional experience.