This document discusses theories, concepts, and rationale of strategic planning. It describes different theories of strategic planning including philosophical synthesis, rationalism, organizational development, and empiricism. It also discusses concepts of strategic planning in the context of business, administration, and socio-economic development. Finally, it outlines various purposes of strategic planning such as orienting organizations to community needs, establishing priorities amid limited resources, and realistically forecasting events through an exercise in "futurology".

1. 3.Theories, Concepts, & Rationale of
Strategic Planning
a. Theories of Planning
b. Concepts of Strategic Planning
c. Rationale of Strategic Planning

2. At the end of the lecture, the students will be
able to:
1. Describe the different theories of strategic planning
and the crisis it had undergone;
2. Compare and contrast the different concepts of
strategic planning in the context of the business
world, administrative leadership and behavior, and
socio-economic development; and
3. State the various purposes and rationale of strategic
planning

3. • Planning as a human and professional activity
and an area of academic inquiry lacks
disciplinary focus
• Planning, just like her mother PA, has no
intellectual turf of its own. Each is like a moon
which borrows its light from the sun and stars
• Thus, its heavy reliance from multiple
disciplines makes planning an easy target for
question and debate

4. H. Simon (1969) describes it as an
“artificial” science
Wildavsky (1973) observes: “If planning is
everything, maybe it is nothing”
S.J. Klees (1986) argues that “it is
technocratic cultism and political
curtailment of individual freedom”

5. D. Adams (1991) – “Planning is a quasi-
science that incorporates the latest
developments in the information
technology and administrative sciences,
the insights of the social science
disciplines, and the design capabilities
of engineering profession

6. Planning is a process for accomplishing
purpose.
• It is blue print of business growth and a
road map of development.
• It helps in deciding objectives both in
quantitative and qualitative terms.
• It is setting of goals on the basis of
objectives and keeping in view the
resources (wikipedia)

7. In spite of new and powerful
technology capable of analyzing
vast amounts of data, determining
trends, and modeling alternative
futures, planning suffers from
identity, theory and utility

8. According to Adams (1991) these are:
1. Philosophical synthesis
2. Rationalism
3. Organizational Development (OD)
4. Empericism

9. PHILOSOPHICAL SYNTHESIS – tends
to emphasize a broad aspect to
planning which seek insights into social,
economic, and ethical conditions as
well as environmental context of the
institution or sector for which planning is
being undertaken

10. RATIONALISM models of planning
assume a sequential, observable,
cycle that includes setting of goals,
determining objectives, making
plans, implementing the plans, and
reviewing the results

11. ORGANIZATIONAL DEVELOPMENT
– focuses primarily on ways to
achieve organizational change. It
includes a human relations approach
to innovation and change in
management style, employee
satisfaction, decision-making
process. And the general health of
the organization

12. EMPERICISM – recognizes the
significance of system behavior
studies by public administrators,
economists and other social
scientists concerned with planning
theory

13. SOCIO-ECONOMIC DEVELOPMENT:
The concept of DEVELOPMENT
PLANNING planning came about as
the more legitimate, appropriate and
culturally-oriented framework in the
formulation of social, economic, and
political national plans and policies

14. DEVELOPMENT PLANNING – is
basically the act of choosing. It is
deciding in advance the WHAT, the HOW,
the WHEN, and the WHO of determining
goals, policies and plans and conscious
setting of alternative courses of action,
procedures and strategies needed to
achieve the purposes of government
(NEDA, 1982)

15. BUSINESS PLANNING
• 1922 – Harvard Dean Wallace Donham
made the argument that unless
businesses systematized decision-making
practices, they were not much from
gambling efforts
• 1960s-’70s – Harvard Business Review
had indicated its interest articles on long-
range strategic planning (N. Capon et al.,
1987)

16. • 1976 Lorange and Vancil viewed strategic planning
(SP) as a single process whereby managers must
agree on a detailed integrated plan of action for the
coming year starting with the delineation of corporate
objectives and concluding with one-or two-year profit
plan
• Further, they identified six processes that top
management has to deal with:
a) communicating corporate goals,
b) developing the goal setting process,
c) scanning the environment,
d) understanding the subordinate-manager focus
e) developing the planner’s role, and
f) developing the link between planning and budgeting

17. • 1974 defines SP as the continuous process
of making entrepreneurial decisions
systematically and with the greatest
knowledge of their futurity, organizing
systematically the efforts needed to carry
out these decisions and measuring the
results of these decisions against
expectations through organized feedback
(Peter Drucker).
• 1981 in the perspective of education and
social development, SP is perceived as a
set of purposeful actions influencing and
organization or some part therein to effect
change (K.C. Tanner and E.J. Williams)

18. • 1984 SP is viewed as the effective
application of the best alternative
information to decisions that have to be
made now to ensure a secure future (G.S.
Day)
• 1994 SP is viewed as a long-term planning
to achieve a preferred vision for an
organization, school or school district. It
defines the WHATS to be achieved

19. • SP as a dynamic process which scans
current realities and opportunities in order
to yield useful strategies and tactics for
arriving a better tomorrow.
• It is not a linear, lock-step process derived
or implemented in an authoritarian manner.
Nor it is intuitive or built on hunches and
raw feelings.
• It involves the educational partners in
defining and supporting the purposes and
missions and its provides blueprints for
result-oriented program (
R.A. Kaufman, 1972, 1988 R.A. Kaufman
and J. Herman, 1991, R.A. Kaufman, J.
Herman and K. Watters, 1996)

20. • It appears that no single definition has been
able to capture all facets of contemporary SP
practices despite the array of disciplinary
perspective. Six common distinguishing
features, however, shape the acceptable
meaning:
1. external orientation,
2. a holistic or systematic approach,
3. a process of formulating plan, objectives,
strategies and programs,
4. use of systematic methods in the analysis of
strategic situation and alternatives,
5. commitment to actions, and
6. a knowledge of results

21. • To reorient the organization to the
needs of the community in order to
foster relevant and quality service
• As we plan for expansion, a certain
level of minimum standard to be
observed to guarantee a certain level
of minimum quality performance

22. • Effective SP efforts make the organization
become more viable instrument of socio-
economic development of the nation
• Since resources for sectoral services are
irreversibly becoming less, priorities have to
be established
• The galloping inundation and explosion of a
new knowledge and the emergence of new
technologies as brought about by advances in
science and ICT.

23. • SP means realistic forecasting of events
and in exercise “futurology”

24. Reference:
Miclat, Jr. Eusebio F. Development Planning
& Budgeting, PSU, 2004