MPA 210 Strategic Planning Development

1. Strategic
Planning:
Theories &
Concepts
Jo Ann G. Tomeldan
MPA 210

2. Topics
1 2 3 4 5
Introduction Definition of
Strategic
Planning
Theories of
Strategic
Planning
Concepts of
Strategic
Planning
Summary
2 Key Topics 20XX

3. Introduction
Planning is one of the fundamentals of modern life.
We all practice it to a greater or lesser extent. In our
personal lives, we plan holidays, careers, and the
acquisition of assets (e.g. cars, consumer goods,
houses); sometimes we do detailed planning with
budgets, and on other occasions we do it fairly
informally, simply 'work things out in our
heads'. But however we do it, planning, essentially,
is the ’organization of a series of actions to achieve a
specified outcome'.
3

4. What is Strategic
Planning
“Strategic planning helps
determine the direction and
scope of an organization over
the long term, matching its
resources to its changing
environment and, in
particular, its markets,
customers and clients, so as
to meet stakeholder
expectations.“ Johnson and
Scholes, 1993

5. What is Strategic
Planning
Strategic planning is a
systematic process of
envisioning a desired future
and translating this vision into
broadly defined goals or
objectives and a sequence of
steps to achieve them.
Theories of strategic planning |
Health Knowledge

6. Theories of Strategic
Planning
Philosophical
synthesis
It emphasizes a broad
approach to planning which
considers information on
social, economic, and ethical
conditions as well as the
environmental background of
the institution or organization
for which planning will be
undertaken.
Rationalism
Looks at people as a utility
and defines human relations
in instrumental terms.
Rational planning models
assume a sequential,
observable cycle that
includes setting of goals,
determining objectives,
making plans, implementing
the plans, and reviewing
results.
Organizational
development
A planning approach focuses
primarily on ways to achieve
organizational change. The
organizational development
approach includes a human
relations approach to
innovation and change in
management style, employee
satisfaction, decision
Empiricism
It acknowledges the
importance of studies on
system behavior by public
administrators, economists,
and other social scientists
concerned with planning
theory. Empiricism is less
normative, less concerned
with planned social change,
and uses a positivistic
framework for analysis.
6
theories, concepts, and rationale
of strategic planning (studylib.net) 20XX

7. Theories of Strategic
Planning
Classical Strategic
Planning
This traditional approach
emphasizes a rational,
linear process. It involves
setting clear objectives,
conducting a thorough
analysis of internal and
external factors (e.g.,
SWOT analysis), and
formulating strategies to
achieve goals. The classical
approach often follows a
top-down decision-making
structure.
Resource-Based View
(RBV)
BV theory suggests that a
firm's competitive
advantage stems from its
unique and valuable
resources and capabilities.
In strategic planning,
organizations focus on
identifying and leveraging
their core competencies to
gain a sustainable
competitive edge.
Porter's Five Forces
Developed by Michael Porter,
this framework analyzes an
industry's competitive dynamics
by considering five forces:
competitive rivalry, threat of new
entrants, bargaining power of
suppliers, bargaining power of
buyers, and the threat of
substitutes. Strategic planning
based on this theory aims to
position the organization
favorably within its industry.
7
Navigating the Dozens of
Different Strategy Options
(hbr.org)
20XX
All You Need to Know About
Resource-Based View
(strategicmanagementinsight.com
)
Porter's 5 Forces Explained
and How to Use the Model
(investopedia.com)

8. Theories of Strategic
Planning
Blue Ocean Strategy
This theory, introduced by
W. Chan Kim and Renée
Mauborgne, encourages
organizations to seek
uncontested market spaces
("blue oceans") rather than
competing in crowded,
existing markets. Strategic
planning using this
approach aims to create
new demand and value for
customers.
Agency Theory
Agency theory explores the
relationship between
principals (e.g.,
shareholders) and agents
(e.g., managers). In
strategic planning, this
theory addresses issues of
corporate governance,
aligning the interests of
stakeholders and
managers, and incentive
structures.
Innovation Theory
This theory focuses on
innovation as a central
driver of strategic
advantage. Strategic
planning based on
innovation theory
emphasizes research and
development, technology
adoption, and fostering a
culture of innovation.
8
What is Blue Ocean
Strategy | About Blue
Ocean Strategy 20XX
Agency Theory: Definition,
Examples of Relationships, and
Disputes (investopedia.com)
Innovation Theory - an
overview | ScienceDirect
Topics

9. Concepts of Strategic Planning
NEDA, 1985
• Emerged out of the development efforts and experiences of Third World
countries when they adopted planning as the major instrument in the pursuit
of their economic and social development.
• Development planning is principally an act of deciding ahead of time the
what, the how, the when, and the who of identifying and determining
development goals, policies, and plans; and seriously setting alternative
courses of action, procedures, and strategies needed to achieve the
purposes of government institutions
Day, 1997
• Viewed as zeroing in on decision-making, information, and the future.
Its substance is concentrated on the consideration of current decision
options based on available data and taken in the light of their possible
effects and consequences over time.
9
theories, concepts, and
rationale of strategic
planning (studylib.net)
20XX

10. Concepts of
Strategic
Planning
Mission and Vision
Goals and Objectives
SWOT Analysis
Strategies and Action Plans
Resource Allocation

11. Concepts of Strategic Planning
Monitoring and
Evaluation
Flexibility and
Adaptability
Continuous
Improvement
Stakeholder
Engagement
Long-Term
Perspective

12. Summary
Strategic Planning is, an acknowledged
essential discipline, a vital, systematic,
and ongoing process that enables
organizations to plan the use and application
of their resources, skills, and knowledge in
order to achieve their organizational
missions, goals, and objectives in
environments of ongoing change.
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13. Summary
There are theories and frameworks that
provide different lenses through which
organizations can approach strategic
planning. The choice of theory or
combination of theories depends on the
specific context, goals, and challenges an
organization faces. Effective strategic
planning often involves integrating elements
from multiple theories to create a well-
rounded and adaptable strategy.
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14. Summary
The concepts collectively form the foundation of
effective strategic planning, enabling
organizations to set clear objectives, make
informed decisions, allocate resources wisely, and
adapt to changing circumstances as they work
toward their desired future state.
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15. Thank you
Jo Ann G. Tomeldan
joanntomeldan@gmail.com