Introduction
Strategic planning is critical to the success of any business. Unlike classical entrepreneurial planning, strategic diversity includes vision, mission, and thinking outside the box. This process allows determining the current position of the organization, its success, strengths, and weaknesses, as well as optimal development ways. At the same time, the basis of business management is only just the development of a tactical path but also its adaptation to the specifics of the company’s activities. A strategy is aimed at strengthening the market position of the organization and ensuring the coordination of activities with the ability to successfully compete in the market, attract customers, and achieve the goals set. For my company involved in the construction business, strategic planning is a crucial concept that affects not only profit but also market position because the abilities to meet the expectations of the target audience and create demand are valuable factors in our segment. Therefore, strategic planning is concerned with both what needs to be changed for successful operation and how the organization can function in a specific context with an appropriate resource base to demonstrate sustainable growth and achieve customer recognition.
This work is aimed at identifying the specific features of strategic planning and its main elements within the framework of both the public sector and the construction industry. This process is associated with a number of positive changes and a convenient mechanism to shape a scheme for disciplined change within the team and ensure sustainable performance from all perspectives, including legislative, executive, and others. A viable strategic plan is at the root of seamless change and process optimization within many businesses, and in the construction sphere, this algorithm is highly valued and designed to benefit not only organizations themselves but also the target population.
Elements of a Viable Strategic Plan
The strategic plan of any company is considered a set of missions, goals, and strategies for achieving them, formulated at various organizational levels by the responsible parties. The team involved in developing and implementing a viable plan includes not only managers but also ordinary employees engaged in creating a sustainable algorithm. Moreover, according to Bryson and Edwards (2017), “strategic planning can be applied to organizations, collaborations, functions (e.g., transportation or health), and to places ranging from local to national to transnational” (p. 1). This means that this business concept is multifunctional and has a number of implications and options to implement.
In its traditional form, a viable strategic plan includes several basic elements. Bryson and Edwards (2017) discuss the fundamental activities that shape the construction of this concept and form its framework. The authors focus on public sector organizations and note that this is not necessary to follow a strict order of all the activities presented, but the more elements are used, the higher is the likelihood of successful planning (Bryson & Edwards, 2017). As a result, a viable strategic plan consists of several elements that are to be observed by analytical teams.
Preparation Procedures
At this stage, the main elements to include in the proposed plan are discussed, and an approximate timeline and resource framework are discussed. The list of stakeholders is determined, and the interests of all participants are considered to identify the need for involvement in a specific project. This element of the plan is mandatory and standard for most strategies since any analysis requires estimating resources and time periods.
Organizational Objectives
Further, the main objectives are identified, which correspond to the organization’s business specifics. Bryson and Edwards (2017) highlight “mission, vision, values, and goals,” as well as “applicable legal statutes or mandates” (p. 7). This element of a strategic plan is important in the public sector since the aforementioned lenses become the key determinants by which the target audience is guided and recognizes a particular company.
Analysis of Operating Environments
The following element, which is a SWOT analysis, is a valuable stage of a strategic plan. This framework is a helpful approach that may contribute to identifying the main weaknesses and strengths by evaluating the organization’s internal capabilities and threats and development opportunities by determining the peculiarities of the external environment. Due to this analysis, stakeholders can highlight the features of a specific business, including its strengths and pitfalls.
Issues Analysis
While taking into account potential changes in the mode of operation, this element of a strategic plan is aimed at identifying additional challenges. In a dynamic work environment, different circumstances can affect the stability and rhythm of processes in organizations. Therefore, given various conventions and potential shifts in the direction of development, such an analysis complements the aforementioned SWOT framework and helps avoid undesirable outcomes.
Strategies Identification
This element of a viable strategic plan involves the direct formulation of strategies. When taking into account the identified challenges and potential obstacles, the range of problems is determined, and the preliminary development of a particular project is drawn up based on this information. In the future, certain aspects may change, but in general, at this stage, the basic strategic framework is compiled to work further.
Feasibility Assessment
After identifying the key strategies to apply, their feasibility needs to be verified. For this purpose, relevant criteria need to be taken into account, for instance, the specifics of the business, the available resource and financial bases, stakeholders’ preparedness, and other aspects. This element of the plan is important because it can help identify potential gaps or deficiencies. In addition, the final versions of the strategies to implement are obtained.
Plan Implementation
This stage is the process of implementing the defined elements of the plan. All resources are combined, and work is carried out in accordance with the tasks and the time required to complete all procedures. In case a strategic plan is based on a change process, each of the steps should be taken based on a clear sequence verified initially to avoid discrepancies and mistakes.
Evaluation Stage
This element is mandatory for a viable plan since it implies constant control over all stages of activities. Corresponding subtotals are summed up, and in case of undesirable changes, edits and modifications are made timely. Monitoring should be continuous to ensure the sustained implementation of all intended objectives and results; otherwise, there is a risk of inconsistency between the original goals and the final results.
Reassessment Process
Finally, the trailing element of the whole process is optional and can be omitted if no significant deficiencies appear during the activities performed. Nevertheless, a viable plan involves an additional assessment of the prepared plan to compare the results obtained with those predicted initially. This work can help correct certain gaps and prevent them in the future to make the mode of strategic planning smoother and less time-consuming.
The presented elements of a viable strategic plan reflect a clearly compiled algorithm of work, which covers different areas and includes not only practical tasks but also forecasting steps. By following such a program, this is easier to create a sustainable transition to the desired change or to strengthen certain aspects of the business. Moreover, the more carefully each of these elements is performed, the less are the risks of obtaining distinctive results from those planned in advance. Therefore, in its ideal form, a viable strategic plan should include the aforementioned stages.
The Need to Develop a Strategic Plan in the Public Sector
Strategic planning is a set of measures that can be adapted to the needs and interests of different stakeholders. Individual entrepreneurs can also benefit from this framework by creating a stable and credible environment for building their businesses. However, as Bryson (1988) states, “strategic planning was designed originally for use by organizations” (p. 74). This means that the operating conditions of companies allow implementing the aforementioned stages since any organizational structure has an individual resource base, a team of employees, and other elements to use. In the public sector, where budgetary and non-profit organizations operate, adherence to the concept of strategic planning is of particular importance due to the ability to follow clear development steps while not violating the official requirements for their work. This perspective distinguishes such companies from private ones, where the owners have greater freedom to choose the volume of investment, innovation to apply, and other development solutions. Therefore, the public sector assumes strict adherence to such a planning algorithm as a stably effective optimization mechanism.
As a good reason to stick to strategic planning in the public sector, one should pay attention to a number of conventions that organizations in this field have to follow. Legislative provisions, tax reporting, responsibility to the population, and other factors explain the need to create a clear framework that contributes to avoiding risks and prevents violations of relevant regulations. For instance, in the field of education, stakeholders do not have an opportunity to adapt curricula to individual interests or receive additional financial dividends. In the healthcare sector, employees are not allowed to create programs that are aimed at capitalizing profits without the knowledge of supervisors. At the same time, according to Bryson (1988), strategic planning allows setting clear goals to achieve and build development scenarios that meet organizations’ interests. Companies in the public sector are tied to their respective mandates and legislative principles, and if an effective plan is developed, strengthening individual aspects is possible but not a complete transformation of the line of business. As a result, for such organizations, effective planning is one of the few techniques to improve the quality of work.
Supervisors in the public sector use control methods that are different from those utilized in the private sector. Bryson (1988) notes that, in addition to financial reporting, actual performance totals are critical metrics that reflect companies’ success. Each of the planning steps implies achieving a specific objective. Moreover, public organizations are often involved in political and economic areas of state development, which explains the value of ensuring sustainable development. The budgetary funds allocated for the implementation of the tasks set are not always sufficient, and the need to use the maximum of the available resources is a mandatory and inevitable condition. Strategic planning, in turn, allows avoiding rash costs or ineffective decisions due to the structuredness of the entire process. Bryson (1988) remarks that situations can be different, and emergency interventions occur not only in the private but also in the public sector when, due to external circumstances or internal turmoil, urgent changes are needed. However, unlike private businesses, any intervention in public organizations is associated with high accountability and the pursuit of not vested interests but high-performance outcomes. Therefore, for the public sector, strategic planning is a meaningful concept.
Strategic Planning in the Construction Industry
In the construction industry, strategic planning is as important as in many other spheres in both the public and private sectors. The need to create reliable projects, modernize infrastructure, meet the interests of the population, and other tasks explain the relevance of this concept. To ensure the implementation of a construction organization’s mission, strategic planning, as a set of target decisions and actions, should be defined and approved by the management. According to Farahmand (2017), within the framework of such planning, solutions need to be worked out in the areas of resource allocation, adaptation to external factors, controlled coordination of financial and production aspects of activities, as well as organizational strategic foresight. Therefore, a comprehensive assessment of the working environment is an imperative condition.
The resources of a construction organization are often limited, and plan developers’ task is to allocate them as rationally as possible to achieve the final results with the minimization of the resources consumed. Kabeyi (2019) highlights that adaptation to external factors involves organizing interactions with the external environment, including with other business entities, government, and local authorities. The purpose of internal coordination is to ensure the effective operation of the divisions of the construction company based on the preliminary identification of its strengths and weaknesses. Organizational strategic foresight, in turn, is based on the experience of past strategies and is associated with the study, synthesis, and analysis. Therefore, to develop a high-quality plan that can meet all stakeholders’ interests, a construction organization needs to receive and process a large volume of information and engage competent specialists. This activity does not guarantee success, but with its help, a construction company can create a stable algorithm that allows assessing resources adequately and allocating sufficient funds to optimize the work process. This practice is generally accepted, and if implemented correctly, a well-compiled plan is an essential instrument to make a construction business sustainable.
The missions of large construction organizations and small ones have significant differences. Small companies determine both the activity and the goals arising from it based on their own capabilities in the creation and implementation of a construction product. As El-Hallaq and Tayeh (2016) argue, most often, they are guided by participation in this process as subcontractors. Nevertheless, as practice shows, small construction organizations may also act as general contractors by focusing on the demands of the construction product market, which increases their business opportunities.
The goals of the construction organization determine its activities with the implementation of the identified values. When formulating goals, this is crucial to take into account that they should not only be specific and achievable but also ranked based on the time of their implementation. According to Kabeyi (2019), when developing a strategic plan at the stage of researching a construction organization’s strengths and weaknesses, developers should consider individual areas. They are marketing, for instance, pre-sale and after-sale service for customers or the assessment of profit levels, finance, construction production, labor resources, as well as the culture of the organization. These aspects create a holistic mechanism for working towards planning and contribute to establishing sustainable activities. Moreover, they are critical factors that help cover specific tasks comprehensively and develop a specific activity algorithm timely.
In terms of obtaining orders for construction, marketing research work plays a significant role. El-Hallaq and Tayeh (2016) note that builders need to assess their competitiveness, and this assessment is closely related to the subsequent study of strategic alternatives – a limited increase in the volume of construction work, a certain and relatively high growth, a reduction in the volume of activities, and, finally, a combination of all alternatives. The result of this research is the choice of a specific strategy option. At the same time, this is necessary to take into account such aspects as risks, time factors, and owners’ behavior and their subsequent influence on the adoption of individual planning decisions. The final version of a strategy should be presented by the calculation of planned indicators for all areas of the construction organization (El-Hallaq & Tayeh, 2016). These principles of strategic planning in the segment under consideration are not unique, but their application in the construction business is important due to the strict conditions of contracts and orders from different interested parties.
Personal Experience
Work experience in a construction organization is a valuable factor that allows talking about the importance of strategic planning in this industry and the significance of such a concept from the perspective of the rational use of all available resources. For instance, an appropriate job in a government city is a guarantee that an employee adheres to the idea of the judicious use of innovation and growth mechanisms to ensure sustainable development of infrastructure. Otherwise, the city loses mobility, and not only public but also private buildings become tasteless and rather spoil the city’s appearance than complement it.
The implementation of strategic planning in such an administrative center is an extremely demanding task. In addition to mobility as a critical aspect of an advanced and resilient infrastructure with uncongested traffic and free road and cycle routes, some other factors need to be considered. Zoning, as one of the design components, is a significant aspect that determines how competently and naturally urban objects are distributed. Suffice it to recall the work of the great Brazilian architect and designer Jaime Lerner, who, as Adler (2016) states, turned his hometown Curitiba into one of the most picturesque and rationally planned cities in the country, making it a landmark and inscribing his name in history. Adhering to all required building codes while creating a beautiful and functional space is a challenge that requires effective planning. Therefore, in this activity, careful assessment and analysis are integral attributes of successful design, which, in turn, directly influence the appearance of the city.
Since architecture is an art, design is a creative process. Meeting the interests of citizens is an important nuance, which is one of the determining factors in such work, and infrastructure planning is a stage in creating an urban image. For instance, the failure to address rising sea levels is a testament to the incompetence of planners and architects who are not making enough efforts to help the population keep their homes intact in case of natural disasters. As Adler (2016) remarks, aforementioned Jaime Lerner worked primarily to ensure that his fellow citizens were comfortable living in Curitiba. His activities have borne fruit and proved that competent planning based on the analysis of the city’s current needs and the capabilities of the technical base could be the key to the flourishing of urban infrastructure. Moreover, Robertson (2010) cites the Brazilian architect who argued that simplicity might not be feared if it could bring rich rewards. In other words, effective planning is not always a colossal financial investment but rather a reasonable search for optimal solutions by utilizing the existing conditions as a background of creative projects.
An important factor of successful planning is the variety of approaches and concepts used in the development of the construction industry and specific territories. Equity and inclusion criteria should be considered conditions to be met regardless of the available budget, regulatory approvals, and other factors. According to El-Hallaq and Tayeh (2016), the personal experience of an architect or designer is a variable that influences the quality of planning. The more trained an employee is, the higher is the likelihood that specific plans will resonate among citizens and will be approved not only by professionals and authorities but also by ordinary people. The aesthetic of planning relates to combining the available resources based on anticipated outcomes rather than current conditions. The ability to equip a functional space largely depends on whether different parties’ wishes are met and whether the rights of some of them are not infringed. Through strategic planning, constructors can answer these questions and create an enabling environment for infrastructure development.
For the construction industry, strategic planning plays the role of a clear algorithm that should be adhered to in order to avoid crucial mistakes, which, in turn, are fraught with severe consequences and threats to people’s lives. Improperly designed structures are dangerous, and each of the steps of a specific plan carries significance as a component aimed at improving operational safety. The construction area, like many other spheres, is subject to changes caused by social, economic, and other drivers. Therefore, to avoid gaps in work and meet the interests of the population, implementing the concept of strategic planning indicates constructors’ responsibility for the activities they perform and for their outcomes.
Conclusion
Strategic planning, as a valuable practical methodology, is a set of steps that are elements of compiling development projects, and each of these steps is of particular importance for different organizations. In the public sector, this concept finds its application more often in the private sector due to a number of conventions that such companies are forced to adhere to, for instance, legal regulations or tax obligations. Nevertheless, strategic planning, which includes a number of stages, is applicable to different organizations, and in the construction business, its use is justified by a number of objective reasons. The tasks to follow safety parameters, comply with construction regulations, ensure sustainable development of infrastructure, and meet the interests of the population are among the goals of utilizing this methodology in the industry in question. Personal experience in the sector highlights the real benefits of adhering to strategic planning, and the example of Jaime Lerner, the eminent Brazilian architect, proves that design requires analyzing and assessing the environment, which, in turn, is realized through effective planning.
References
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El-Hallaq, K., & Tayeh, B. A. (2016). Strategic planning in construction companies in Gaza strip. Journal of Engineering Research and Technology, 2(2), 167-174.
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