A survey of strategic planning practices within the large Information, Communication and Technology (ICT) firms in Kenya

Abstract

The purpose of strategic planning is to enable a company gam as efficient as possible a sustainable edge over its competitors (OhrnaeI983). It is all about competitive advantage. Strategic planning thus implies an attempt to alter a company's strength relative to that of its competitors, in the most efficient and effective way. Strategic planning focuses on the direction of the organization and actions necessary to improve its performance. It is the process by which firms derive a strategy to enable them to anticipate and respond to changing dynamic environment in which they operate. (Mintzberg & Peters 1994) have explicitly argued that the need for organizations to face discontinuities is as great as ever and that high quality performance and responsiveness are absolutely essential. In view of Policy changes that the government of Kenya has introduced within the lCT sector, including the development of ICT strategy (2006-2010), E-government strategy, IC']' strategy for business process outsourcing, completion of the construction of fibre optic cable network, launch of digital migration plan and the publishing of media bill 2008. This has increased the level of competition and a need for reevaluation of strategies by the current players. K'T firms are therefore faced with a highly fluid environment and the study aimed to document strategic plans that leT firms have adopted to position themselves in the market. Primary data was collected using open and closed ended questionnaires, and 11 questionnaires were sent out to various organizations within each subpopulation. 9 questionnaires were correctly filled and returned which translated into 82% response rate. The analysis revealed that most large K'T firms in Kenya have adopted a formalized strategic planning approach covering 1-3 years and the process is lead by marketing, quality assurance, human resource and chief officers in the organizations. The companies' financial strength, human resource and competitor strength playa pivotal role in determining over 80% of leT organizations' strategic plans. More research needs to be carried out on implementation of strategic plans, long term planning and its effectiveness in such a dynamic industry.