Strategic planning in government-dependent businesses |
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| Institution: | 1. Graduate School of Technology, Niigata Institute of Technology, 1719 Fujihashi, Kashiwazaki, Niigata 945-1195, Japan;2. Department of Materials Science and Technology, Graduate School of Science and Technology, Niigata University, Niigata 950-2181, Japan;3. Laboratory of Chemistry, Tokyo Dental College, Tokyo 101-0062, Japan;4. Department of Dental Hygiene, The Nippon Dental University College at Niigata, Niigata 951-8580, Japan;1. Kelley School of Business, Indiana University, 1309 E Tenth Street, Bloomington, IN 47405-1701;2. College of Agriculture, Texas A&M University, College Station, TX 77843, U.S.A.;3. Mays Business School, Texas A&M University, College Station, TX 77843, U.S.A.;4. Neeley School of Business, Texas Christian University;1. Nutrition and Endocrine Research Center, Research Institute for Endocrine Sciences, Shahid Beheshti University of Medical Sciences, Tehran, Iran;2. Department of Clinical Nutrition and Human Dietetics, Faculty of Nutrition Sciences and Food Technology, National Nutrition and Food Technology Research Institute, Shahid Beheshti University of Medical Sciences, Tehran, Iran;3. Department of Molecular, Cellular, and Biomedical Sciences, Sophie Davis School of Biomedical Education, City University of New York School of Medicine, New York, NY 10031, USA;4. Graduate Program in Biology, City University of New York Graduate Center, New York, NY 10091, USA;5. Endocrine Physiology Research Center, Research Institute for Endocrine Sciences, Shahid Beheshti University of Medical Sciences, Tehran, Iran;1. Department of Nutrition, Dietetics, and Hospitality Management, Auburn University, Auburn, AL, USA;2. Boshell Metabolic Diseases and Diabetes Program, Auburn University, Auburn, AL, USA |
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| Abstract: | As the role of government has expanded in various countries, standard distinctions between the public and private sectors have become blurred. This paper explores the special context within which strategic planning must take place in organizations with a very high dependence on government. Four types of government dependency are considered: ownership dependency (public enterprises); regulation dependency (private, regulated firms); input-dependency (e.g. non-profits dependent on state funding); and output-dependency (e.g. defence contractors who sell a considerable portion of their output to governments).Despite their seeming differences, all four types of government-dependent organizations (GDOs) experience five distinctive problems that seriously limit the relevance of traditional planning models (or what are often referred to as ‘rational, comprehensive models’). They are: fragmented strategic decision-making authority; heightened goal ambiguity; politicization of strategic decision-making; short-term orientation and internal bureaucratization.The concepts of strategy and strategic planning are as relevant to Government dependent organizations (GDOs) as they are to other kinds of firms, although the planning system has to be designed somewhat differently. Six tentative guidelines for designing the planning system in GDOs are presented in the paper: (1) plans must be ‘negotiated’ rather than ‘formulated’ in GDOs; (2) outsiders must be involved in the planning process; (3) socio-political issues must be integrated with technoeconomic tissues; (4) top management must play an active role in running the system, especially in managing interfaces with government; (5) the planning system should emphasize flexibility over discipline or rigor and (6) plans must be written up with the expectation that much of their contents could become public knowledge.The paper concludes with the view the GDOs may have a lot to learn from one another despite superficial differences in institutional status (public vs private) and nature of goals (for- profit vs not-for-profits). |
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