EFFECT OF STRATEGIC PLANNING ON THE PERFORMANCE OF SELECTED CONSTRUCTION FIRMS IN LAGOS STATE, NIGERIA

Abstract

construction firms in Lagos State, Nigeria. The objectives of the study are to determine how strategic planning is being practiced within the organisations; study the effect of strategic plan implementation on construction firm’s performance and examine the challenges and solution of strategic planning practices on construction firm’s performance. Four construction firms were selected from the study area, using purposive and judgemental sampling techniques. The total number of usable responses received for the analysis was eighty (80). Data analysed were interpreted using descriptive statistic and inferential statistic. The study revealed that strategic planning and associated have direct impact on the performance of the firms. The analysis shows that the organisation have written longer-term (3-5 years) and short –term (1 year) goals/plans, the organisation plan shows quality, time frame and cost targets of each project executed and the organization’s plan appear realistic and achievable with respective mean of (3.80, 3.59 and 4.09). The significance probability for this relationship was .000 and Pearson Correlation is .540, which describes a positive relationship between strategic planning and Construction firm’s performance. The significance probability for this relationship was .000 and Pearson Correlation was .561, which describes a positive relationship between strategic implementation and Construction industry performance. From the study, it was recommended that the existing strategic planning of the organisation be reviewed and strengthened to further improve organisational performance and also top management staff should also involve both middle and lower management staff in the strategic plan of the organisation, also the strategic planning challenges were properly identified and necessary solutions were provided.