Wallaga University, Gimbi Campus

Faculty of Business and Economics

Department of Economics

Development Planning and Project Analysis I

Course code: Econ-4131

By: Sagni T.(MSc)

November-2024
Course contents

1. The Evolution of Development Thinking and Planning

2. Classification of Development Planning
3. Strategic Planning and Management
4. Project Monitoring and Evaluation
5. Evaluation: Some Basics of Impact Evaluation
 Chapter One
The Evolution of Development Thinking and
Planning

Chapter contents
 Evolution of development thinking
 The meaning of development planning
 The rationale for development planning
 The need for planning in Ethiopia
 Requisites for successful development planning
 Evolution of development thinking and planning
Introduction
 The evolution of development thinking can be summarized in to
three different periods:
 The Early Post War Consensus
 The Washington Consensus
 The Oscillating Search for Silver Bullet
1.The Early Post War consensus
 This period covers immediately after the end of World War II up
to the end of 1960's and the beginning of 1970's.
 This is an interesting period for the developing world because it
gets attention from academicians how on growth and
development could be achieved in these countries.
(https://thisvsthat.io/development-vs-growth)
Cont.….
 That is why in the 1950's and 1960's, the previously neglected
sub-fields of Development Economics were rediscovered
 Available economic models seemed to offer only limited insights
into the practical problems facing the so-called Third World.
 The dominant one-sector macro models of the day, from
Keynesian to Harrod-Domar to Solow seemed to have relatively
little relevance for societies not primarily concerned with
business cycles or steady-state properties.
 The early post-war consensus period could be looked into
five important sub-periods.
 Dualism
 Need for Balanced Growth (structuralism)
 International Trade Scene
 Interventionist State
 Technology in generating growth
aa..Dualism
Dualism
• Dualism is a term that refers to various philosophical, theological,
or political views that involve two distinct or opposing concepts.
• It attracted due attention during the 1950s and 1960s. The
components under dualism are:
 Sociological dualism: Boeke, 1953 is the major proponent.
 The central theme of sociological dualism was differences between
Western and non-Western objectives and cultures are the major
source for dualism.
• Technological dualism:Higgins,1956 is the major proponent.
 Differences between variable factor proportions in the traditional
sector and fixed coefficients in the modern sector as major sources
for dualism.
• Physiocrats:viewing land as the source of all wealth, agricultural
surplus supporting the non-agricultural sector.
• Classical dualism: Ricardo and Lewis 1951 are major proponents.
 Surplus labor as potential for growth when transferred from
agriculture to non-agriculture.
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Cont.….
b. Need for Balanced Growth (structuralism)
• Rosenstein:- Rodan, 1943 and Nurkse, 1953 and others
emphasized the need for balanced growth not only between
agriculture and non-agriculture but also with in each sector.
c. International Trade Scene
• Prebisch,1962 stated that the international trade scene
painted in colors and was unfriendly for development and
demanded for equitable exchange.
d.Interventionist State
• The current theoretical thinking indicates that there is strong
inclination to turn to the intervention state as a key
instrument for development.
e. Technology in generating growth
.

• Solow, 1957 and Kuznets, 1955 contribute to emphasize the

importance of technology in generating growth.
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2.The Washington Consensus
 It is undoubtedly unfair to attribute the realization that
policy change is the key ingredient of successful
development to the international financial institutions.
 It rather would give more credit for the realization that
prices matter more and that macroeconomic stability matters
less.
The main components of the consensus are:
 Privatization and unified and competitive exchange rates
 Simultaneous liberalization of financial markets
 Relative openness to Foreign Direct Investment (FDI) and
gradual deregulation of control systems
 Emphasize on R and D
 Changes at micro level
 Program lending changes in to structural adjustment
lending.
3.The Oscillating Search for a Silver Bullet
 Viewing per capita income growth as the key objective has
been questioned for sometimes.
 Serious mainstream attention has been given to the
distribution of income, to the extent to which private income
poverty is reduced and to the extent to which public income
poverty (the distribution of public goods) is being addressed.
 The public income poverty can be seen through various
human development dimensions like infant mortality, life
expectancy, literacy as fundamental objectives of
development.
 The controversial relationship between growth and income
poverty alleviation is that growth is a necessary but not
sufficient condition for poverty reduction.
 The meaning of Development Planning
 The idea of planning has a long history and goes back to the
time of Pluto [the first person who talked about organized
planning.
 It was later developed, shaped and molded by eminent
thinkers and writers both in the western and eastern camp.
 However, the idea of economic planning in its modern form
is comparatively new. It is the 20th century phenomena.
 Development is a complex issue, with many different and
sometimes contentious definitions.
 Development is empowerment: it is about local people
taking control of their own lives, expressing their own
demands and finding their own solutions to their problems.
Cont.…
 Development planning:refers to the strategic measurable
goals that a person, organization or community plans to
meet within a certain amount of time.
 Usually the development plan includes time-based
benchmarks.
 It generally also includes the criteria that will be used to
evaluate whether or not the goals were actually met.
 Development planning typically follows a set of distinct
phases:
 Situation analysis, both internal to the area, and the forces
which are shaping the area.
 This may involve a range of tools to assess the strengths,
weaknesses, threats and opportunities (SWOT) facing an
area
 Cont.…
 Prioritizing key issues, problems or outcomes
 Developing objectives
 Developing plans to address the objectives, including
strategies, activities and projects
 Developing a spatial picture of the situation as well as
plans
 Developing budgets to achieve the plans.
 Ideologically, the evolution development planning is
from three perspectives:
Planning in eastern Europe (socialist perspective)
Planning in western Europe (capitalist perspective)
Planning in underdeveloped countries (mixed
economic perspective)
 1.Planning in Eastern Europe
 During the 19th century, intellectual theorists, thinkers and
writers in the Eastern Europe became fed up with the
inquiry and contradictions of pure capitalism.
• Therefore, they developed the idea of state intervention to
set matters right and to prevent inequalities resulting from
capitalism (free economy)
• In 1928 the Soviet Union gave the idea of economic
planning a real shape when it formulated its first five year
plan.
• The main objective of the socialist (Soviet) plan was to
achieve the rapid transformation of a backward agriculture
sector (traditional sector) into a modern industrial sector.
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2.Planning in Western Europe
 There could be several factors that necessitate planning in
Western Europe, among others wars, great depression of
1930th, expansion of markets, and specialization.
• In Western economics, a series of the above historical
development led to the coordination of economic policies,
i.e., planning. These are:
a. The development of science and technology not only made
material progress possible, but also they made planning
possible
b.In the 1930’s, the capitalist world was in the midst of the
biggest depression in the world history. Capitalism failed and
economic growth collapsed.
 Therefore, economist and politician favored economic
planning as a remedy for these and other economic ills.
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 Cont.…
 The objective of the economic planning in the West was
basically different from that of the Soviet Union.
• The purpose of planning in Nazi Germany was
primarily to build up the war potential rather than
improving the living standard of the people.
c.The outbreak of World War I and II necessitates the proper
and efficient planning of economic resources for successful
prosecution of the war.
d. The growth of markets and increased specialization led to
increased interdependence among economic activities and to
greater economic externalities, which lead to adoption of
economic planning.
e.The development of democracy also lead to the adoption of
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planning in order to rectify social inequalities.
 The need for planning in Ethiopia
Economic planning was considered as important remedy for
underdeveloped countries in their desire for
industrialization.
 They want to achieve rapid growth in short period of time.
Economic planning, therefore, was considered as a tool
to achieve rapid economic development.
 However, the development (evolution) of planning took a
different course (path) than the rich countries in the
following reasons:
1.In Less Developing countries, planning was considered as
an ideology rather than a means because in these countries
planning was considered as a desire (expression) of many
things, such as:-
 Cont.…

 Desire of self control

 Desire (expression) of independence
 Expression of self-determination
 Then planning as a political and cultural goal
2.New leaders (elites) emerged when they got
independence with new vision (ideas).
 Planning was not as a result of popular participation. it was
up down planning to express the need of the leaders who
control the political structure.
 The rationale for development planning
 Any country cannot satisfy all needs of her society due to
scarcity of productive resource.
 It requires an improvement how countries utilizes their
scarce resources to satisfy /improve societal wellbeing
/walfare.
 The followings are considered as ration for Development
planning
1.Scarcity
2.Duplication of needs
3.Population growth
4.Duplication of expenses
5.Technological advances
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6.Competition among countries etc
 Requisites for successful development planning
 Development plan is a large scale investment project to
develop the infrastructure of a country.
 It requires central planning and monitoring on a national
level & implementation on a micro, local level.
 Adequate funding from government agencies as well as
support from citizens, will allow short, medium and long
term goals to be met.
 Goals
 Monitoring/Overseeing
 Communication
 Timeline
 Implementation
 Funding
 Publicizing accomplishments
 Chapter Two: Classification of Development
Planning
Meaning of Economic Planning
 There is no agreement among economists with regard to
the meaning of the term economic planning.
 As a working definition Planning is a technique or a means to
achieve an end.
 End refers to certain predetermined target (well defined
objective). End might be achieving:
1.Economic objectives,
2.Social objectives or military objectives or both
 The main point is not to have plan but what kind of plan do
we need to achieve the objectives.
 Intervention of state in all economic activities is inevitable, i.e.;
government do intervene in an economy in one way or another.
 But what matters is the degree, type and nature of intervention.
 Types of Economic Planning
 Planning takes different forms on the basis of:
Differences in time periods, institutions affected, extent
of activities covered and modes of executing the plan,
etc
 Therefore, the types of planning are:
1.Authoritarian and Democratic Planning
2.General and Partial Planning
3.Functional and Structural Planning
4.Planning by Inducement and Direction
5.Centralized and Decentralized Planning
6.Physical and Financial Planning
7.Rolling and Fixed Planning
 Authoritarian and Democratic Planning
In authoritarian planning, the government is the sole
centralized agency which draws the plan and imple-
ments it.
• It is more comprehensive, systematic and rigid and is
more efficient.
In democratic planning, the plan is prepared by an
expert body called the planning commission, which is
outside the government or the executive and it is finally
approved by legislature which represents the people.
• It is based on the system of free enterprise, but economic
activity outside the public sector is sought to be regulated
and guided indirectly by providing incentives for investment
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through fiscal or monetary policies.
 General and
2.General andPartial
PartialPlanning
Planning
 General planning is which a comprehensive and integrated plan
is conceived, initiated and executed by a central authority.
• The plan covers all aspects of the economy and the central
authority completely controls the investment and utilization of
resources.
 Partial planning: a sort of piece-meal planning in which the
plan covers only some important sectors of the economy.
Functional and Structural Planning
 Planning may be attempted within the existing socio-economic
framework or it may seem to change the existing order
radically. The former is known as, functional planning and the
latter structural planning.
 Functional planning assumes that planning is possible even
in a capitalistic economy, whereas advocates of structural
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planning think that planning and capitalism are incompatible.23
 Planning by direction & Inducement
 Planning by inducement is often referred to as
indicative planning.
 In this type of planning, the planner either subsidizes
production or controls prices, if it is intended to
increase the consumption of a commodity. The first
acts on the supply side and the latter, on the demand
side.
The merits of indicative planning are:
Consumer's sovereignty remains intact/complete
There is freedom of enterprise
It is flexible
It is democratic
 Planning by direction
 Planning by direction implies minute and detailed
instructions being given both to producers and consumers.
 Planning by direction is very comprehensive. It covers the
entire economy.
 There is complete concentration of economic authority
in the state.
 There is one authority which is in sole charge of planning,
directing and execution of the plan in accordance with pre-
determined targets and priorities.
 Short comings
 It is undemocratic since the people are ignored all
along.
 Planning by direction does not yield satisfactory results.
 There is bound to be shortage of some and surplus of
other commodities.
 Besides, this sort of planning is bound to be inflexible.
 The fulfillment of the plan cannot be anticipated,
because conditions keep changing.
 Planning by direction also leads to excessive
standardization which impinges on consumer's
sovereignty.
 It also involves huge administrative costs-elaborate
censuses, numerous forms and army of clerks.
 Physical and Financial planning
Financial Planning
The planners determine how much money will have
to be invested in order to achieve the pre-determined
objectives
The essence of financial planning is to ensure that
the demands and supplies are matched in a manner
which exploits physical potentialities as fully as
possible without major and unplanned changes in
the price structure.
Finance holds the key to the success of a plan. If the
country is able to raise adequate financial resources,
the success of the plan is assured
Physical Planning
 In physical planning, the planning authority has to work out
how much land, labour, materials and capital equipment will
be required to implement the plan and achieve the targets.
 It is not to be understood that physical planning is a straight
and simple affair and presents no difficulties. Rather, there
are formidable difficulties in the following ways:
 In the under-developed countries, there is statistical
blackout so that adequate and reliable statistics regarding
the various types of real resources are lacking.
 Physical planning is not enough to prepare a sound plan for
economic development.
 Fixed and rolling development planning
 In a rolling plan, every year three new plans are
made and acted upon.
 First, there is a plan for the current year which includes
the annual budget and the foreign exchange budget.
 Second, there is a plan for a number of years, say three,
four or five.
 It is changed every year keeping with the requirements
of the economy.
 Third, a perspective plan for 10, 15 or 20 or even more
years is presented every year in which the broader goals
are stated and the outlines of future development are
forecast.
 Short term, Medium-term & long-term planning
1.Long Term Plan: is the long-term process that business
owners use to reach their business mission and vision.
 It determines the path for business owners to reach their
goals.
2.Intermediate Plan: intermediate planning covers 6 months
to 2 years.
3.Short-term Plan: involves plans for a few weeks or at most
a year.
 It allocates resources for the day-to-day business
development and management within the strategic plan.
 Short-term plans outline objectives necessary to meet
intermediate plans and the strategic planning process.
 Planning Principles
 Good planning requires a methodical process that clearly
defines the steps that lead to optimal solutions.
 This process should reflect the following principles:
 Comprehensive–all significant options and impacts are
considered.
 Efficient – the process should not waste time or money.
 Inclusive–people affected by the plan have opportunities to
be involved.
 Integrated–individual, short-term decisions should support
strategic, long-term goals.
 Logical – each step leads to the next.
 Transparent–everybody involved understands how the
process operates
 Factors Leading to the Failure of the Planning
 Inadequate Preparation
 Lack of the study
 Lack of the vision and Mission
 Lack of clarity in the objectives and the goals
 Absence of the feedback
 Lack of the staff control
 Inadequacy in defining the various businesses
 Absence of the review
 The Rationale for Planning in Developing Countries
 Developing countries need economic planning in order
to achieve the following objectives:
• To increase the rate of economic development
• To improve and strengthen the market mechanism
• To reduce unemployment and disguised unemployment
• To enhance the linkage between the agricultural and
industrial sectors
• To create social overhead that enhance agricultural and
industrial growth
• To expand domestic and foreign trade
• To eradicate poverty
• To be Self-sufficient in food and raw materials
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 Pre- requisites for planning
 The formulation and success of a plan require the
fulfillment of the following factors:
• Planning commission
• Statistical data
• Clear Objectives
• Fixation of Targets and Priorities
• Mobilization of Resources
• Balancing in the Plan
• Incorrupt and Efficient Administration
• Proper Development Policy
• Economy in Administration
• An Education Base
• A Theory of Consumption
• Public
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 Arguments for and against Planning
1.Arguments for Planning
 Planning becomes necessary for equitable distribution of
economic power
 Planning helps to protect labor and harmonize wage relations
 Planning helps to eliminate economic instabilities
 Planning helps to make terms of trade favorable to the country
 To realize major economic changes
 Planning eliminates wasteful competition
 Efficient use of resources
 Planning prevents artificial shortages that can be created by
monopoly actions
 Planning helps to minimize environmental costs of
industrialization
 Planning also results in higher rate of capital formation
2.Arguments against Planning
 Inherently markets are not imperfect. Markets could be
perfect by man mechanisms (increase competition,
information) and therefore there is no need for state
intervention- planning.
 The best approach to minimize the difference between
marginal net benefits of social and private is through
use of fiscal measures (taxation and subsidy).
 In order to prepare and execute a plan needs competent
administration (skilled manpower) which is in short
supply in Less Developing Countries.
 Planning requires information in quantity and quality
which is limited in Less Developing Countries.
 The cost of planning in Less Developing Countries is
enormous in the form of administration, licensing, etc.
 Limitation of Planning
 Broadly the limitations could be on: concepts, coordination, action,
follow up. The specific limitations observed on planning are:
1.Planning heavily depend on reliable data. If there are
unreliable data, the potential benefits of planning will be
undermined.
2.The problem of discontinuity. Planning models don’t deal with
random shocks (natural hazards, social changes and human
intervention). Plans work effectively when social and economic
development unchanged (unfolds) continuously.
3.The problem of uncertainty (natural, market, state and war,
international).The problem with uncertainty could be minimized
by adopting probabilistic models but planning models are not using
such methods.
4.Inflation: price instability would reduce the use of planning
models.
 Therefore, the use (favoring) of planning should be in line
with the above limitations.
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Chapter Three: Strategic Planning and Management
Introduction
 Strategic planning and strategic management may sound like
they’re interchangeable, but they are two different parts of a very
important process: achieving a business’s long-term goals.
 Strategic planning is the approach used in forming an
organization’s direction(e.g. its vision, mission and
priorities).
 On the other hand, strategic management is the overall
process of achieving that direction, from planning to
executing.
Strategic Planning: concentrates on long-term purpose and
direction on the key issues which face the organization in
the longer term.
Strategic Management: tends to cover like analyzing the
environment, making choices about direction and
implementation.
 Con’d….
• Strategic planning is an ongoing process by which an
organization sets its forward course by bringing all of its
stakeholders together to examine current realities and define
its vision for the future.
• It examines its strengths and weaknesses, resources
available, and opportunities.
• Strategic planning isn’t just for companies. At Better Up,
strategic planning is one of the skills that we identify, track, and
develop within the Whole Person Model.
• For individuals, strategic planning is the ability to think through
ways to achieve desired outcomes. Just as strategic planning
helps organizations realize their goals for the future, it
helps individuals grow and achieve goals in a unified direction
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 The strategic approach
 The strategic approach or mentality consists of four
main elements:
1. It is future oriented
 It recognizes that the environment will change and tries to
anticipate events rather than simply react as they occur.
 The strategic approach leads the official to ask:
 Where his commission/Bureau want to be after a certain
period;
 What it will need to get where it wants;
 How to develop strategies and the means to get there,
 Finally, how to manage those strategies, to achieve the goals
and objectives.
 2.It has an external emphasis
 It takes into account several components of the external
environment(Political,Economic,Social and Technological
or PEST); and recognizes that each of these can either
constrain or facilitate the commission or Bureau as it seeks
to implement policy.
 Politics will determine the policies that are to be
implemented
 Economics will determine the commissions and Bureau’s
level of resources;
 Social factors might well determine who the commission’s
or Bureau’s beneficiaries will be
 Technological factors might affect the commission’s or
Bureau’s early warning capacity;
 Strategic thinking recognizes and emphatically takes into
account politics and the exercise of political authority.
Con’d…

3.The commission or Bureau is not free to do anything

they decide
 The commission and Bureau must be sensitive to the needs
of and respond to demands, which constituents over whom
they have little or no control.
4.The strategic approach is a process
• The strategic approach is a process that requires monitoring
and review mechanisms capable of feeding information to
managers continuously.
• It is continues and recognizes the need to be open to
changing goals and activities in light of shifting
circumstances within the environment.
 The Strategic Planning and Management Process
1.Get organized
 The first step in strategic planning management is to get
organized i.e. deciding whether to develop a strategic plan.
 Before investing considerable effort in Strategic Planning
Management, it is advisable to pause for a moment and
consider why the Bureaus are planning and have strategic
planning management.
 The third issue in organizing your planning is deciding on
whether you need help to complete the plan. Several
resources are available: Consultants, books or articles on
strategic planning, courses and seminars, and learning from
other organizations with good planning systems.
 Cont….

Consultants can help you in several ways. Some

of the help they can provide are:
Assist in designing the planning process;
Orient or train participant;
Lead you through the whole process;
Keep you get started;
Provide advice or assistance if you get stuck;
Provide technical advice;
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2.Form a Planning
 Most organizations use teams to do much of their planning.
 The team is usually composed of 5-8 people but may be as
small as 3 or as large as 12 or more.
 The size of the planning team will depend on the size of the
commission’s or Bureau’s staff who can qualify to
participate in the process.
Make sure that the people to be involved in the planning
team are ready to sacrifice their time and are committed.
The composition of the team is important. It is useful to
have different viewpoints represented on the team.
3.Vision and Mission
 The second step in strategic planning management is defining
your vision and mission.
 Mission is used to indicate the continuing broad general
purpose for which the commission or Bureau exists.
 In identifying the commissions or Bureau’s mission it is useful to
ask the following questions: -
 What is our basic function?
 Why does our commission or Bureau exist?
 What groups were we created to serve?
 If we did not do what we do would someone else do it, if so who?
 Where (within what geographical limits) do we offer our service?
 Who pays us?
4.Identifying stakeholders
 Stakeholders are those individuals, groups, and
organizations who believe, rightly or wrongly those they
have a stake in the commissions or Bureau’s future.
 The power of stakeholders to affect the commission or
Bureau can be split in to four categories:
1.Those who have direct power over resources (donors,
government)
2.Those who have power or political influence (council of
ministers, parliament, regional councils and executive
committee members)
3.Those who have power over service, people on whom the
commission or Bureau depends to provide the service) the
community, beneficiaries)
4.Those who have power over the environment.
 Analysis of stakeholders of the commission or Bureau and
their relative influence is very much associated with the
strategic planning process.
 5.External Environment Analysis
 What the commission or Bureau wants to be in the
future is highly influenced by the environment which is
external to the commission or Bureau.
 The external environments of the commission / Bureau
may be favorable or highly uncertain and hostile.
 In analyzing external environmental conditions,
techniques like:
1. Customers/clients needs analysis;
2. Competitors and allies analysis;
3. PEST (political, economic, societal and technological)
analysis must be conducted and opportunities and
threats identified.
6.Internal Environment analysis
 The “Getting there” of the commission/Bureau, will also be
affected by its internal factors.
 Internal environment analysis focuses on strength
and weaknesses in relation to structures, systems,
processes and people within the commission /Bureau.
 It provides the answer to the question “what are the
things about ourselves which are likely to help us or
hinder us in our attempts to be what we want to be.
 Two techniques could be employed to analyze the
internal environment of the commission or Bureau.
 Benchmarking and;
 The 7-S framework;
 Benchmarking is a systematic attempt to compare
the commissions or Bureaus performance with other
commission or Bureaus, but with an emphasis on
comparison with the best, in order to identify where
you can and should improve your own performance.
The key steps in setting up a bench marking
process are:
1)What are we going to benchmark?
2)Who are we going to benchmark against?
3)How will we get information?
4)How will we analyze the information?
5)How will we use the information?
 The 7-S framework is an example of a checklist
technique.
 The main assumption is that, successful implementation
of strategy. There must be a match of the seven
elements in the framework.
 The 7-S represents: Skill, Structure, Systems,
Shared values, Staff, Style and Strategy
 These elements may be used initially to look at the
commissions or Bureaus present position to help to
identify problems and weaknesses, which need to be
addressed.
 It can also be used, as strategy is developing, to check
that new gaps are not appearing.
7.SWOT(Strength, Weakness, Opportunity and Threat)Analysis

 After conducting external and internal analysis, the

planners should also conduct a matching analysis,
 i.e. the internal strengths and weakness of the
commissions or Bureaus must be analyzed in relation to
the opportunities and threats from the external
environment.
 This matching analysis will show us the position of the
commission/Bureaus and the type of intervention needed.
8.Identification of critical issues for the future
 The final element of the analysis stage (which ever
techniques have been used) in the identification of critical
(strategic issues)
 some issues may emerge directly from the external analysis,
some from the internal environmental analysis.
 The strategic issues that may emerge from this analysis
might be fundamental policy choices affecting the
commission’s or Bureau’s:
 Vision;
 Mission;
 Values;
 Services;
 Beneficiaries;
 Financing;
 Organization or management;
9.Developing a strategic
 After identifying strategic (Critical) issues, the commission/
Bureau can select a planning approach that will enable the
planning team to identify alternative strategies for the
commission /Bureau/.
 Basically there are three methods or approaches for
formulating an organizations strategy for the future.
These are:
 Scenario approach
 Critical issue approach
 Goal approach
I. Scenario approach
 With scenario approach you develop several alternative
pictures of what the commission /Bureaus might look like in
the future. You then pick the best scenario and refine it.
 The following are steps to be taken in the scenario
approach:
1.Each planning team member shares his/her vision /scenario
for the future.
2.The planning team members list and discuss the similarities
and differences among scenarios.
3.The planning team members rate each scenario based on
several factors (fit with mission, fit with government policy,
financial capacity and feasibility), and list the relative
advantages and disadvantages of each scenario.
 Cont.….
4.The most promising scenario gets identified.
5.The planning team discuses this scenario with officials of the
commission or Bureau and staff and receives authorization
from officials to further test whether this scenario is feasible.
6.The planning team translates the preferred scenario in to the
first draft of strategic plan.
7.The draft plan gets reviewed by the commissioner /Deputy
Commissioner, or Bureau heads and full staff.
8.The plan gets refined and approach by the commissioner or
Bureau head and submitted to the administration and social
sector of the prime ministers office of the social sector of the
regional council.
II. Critical issues approach
 A second method of developing your strategy for the future is
the critical issue approach.
 The following are the steps to be taken in the critical issue
approach:
1.The planning team sequences critical issues in some logical
order;
2.The team members suggest and list possible solution to each
issue;
3.The best suggestion to each issues are chosen by the team;
4.The team reviews the clarity and soundness of the
commissions or Bureaus overall strategy for the future;
5.The officials of the commission/Bureau check to see that the
planning team has developed a clear and sound strategy for the
commission /Bureau.
6.The planning team /official of the commission/Bureau and
staff review, revise, and adopt the plan.
III. The goal Approach
 A third way to develop a strategy is to set several major
goals or targets for the commission/Bureaus in the coming
years, and then determine the best strategy to reach each
goal.
 However, the goal approach is often used by for profit
corporations that focus on a few major goals or targets that
drive the organization for example, profitability or market
share.
 The steps in the goal approach are:
1.Set Goals
2.Identify possible strategies or objectives to reach each goal
3.Select the best strategies
4.Outline specific plan to accomplish each strategy
10. Draft and refine the plan

 Your major tasks after developing the strategy is to get a

first draft of the plan on paper refine it then adopt the plan.
 Common activities in this include:
 Agree on a format for the plan;
 Develop a first draft;
 Refine the plan;
 Adopt the plan;
11. Implement the plan (strategic Management)
 A common misconceptions is when your strategic plan is
approved your planning is complete. A better view is when
your plan is approved, a new phase of planning have begun.
 Remember that implementing the plan, monitoring progress;
making mid course corrections and updating your plan are
all part of the strategic planning and management process.
 Make sure that the directions and strategies in your strategic
plan are incorporated in to the coming year’s objectives and
budget.
 A good plan needs good implementation action. Review
progress toward the plan at six-month intervals.