Strategic Planning Practices and Performance of National Sports Federations in Kenya

Strategic Planning (SP) is a systematic process used to improve performance of an organization by prioritizing its use of resources according to identified goals. Organizations embracing SP tend to achieve varied levels of success depending on their level of commitment to SP practices. In developed countries, Sport organizations, both amateur and professional have integrated SP practices which has led to improved on field and financial performance. However, most NSFs in Kenya are struggling in their performance almost two decades after adoption of SP as a policy. Most NSFs frequently fall below their annual budgets by approximately 50-60%. Whereas studies conducted in Kenya positively link SP to improved performance of commercial firms, the relationship between SP and performance of NSFs in Kenya remains unknown. This paper presents findings of a study on status of SP and performance of NSFs in Kenya. A target population of 156 officials drawn from 39 NSFs was used. Out of a sample of 144 a total of 112 respondents returned filled questionnaires giving a response rate of 77.80% which was considered sufficient for a scientific study Content and construct validity were tested. Cronbach alpha for measurement items showed high reliability with the least established at 0.781. Financial performance was used as a measure of performance. Financial statements provided information on financial performance. Descriptive analysis using means, frequencies and standard deviations was adopted. The indicators used were extent to which NSFs had: established strategic planning platform; formulated strategies; developed clear implementation framework as well as their efforts in monitoring and evaluation. Combined means and standard deviations representing extent of agreement/disagreement with practices that promote strategic planning based on each strategic planning practice showed that strategic planning in NSFs is weak. Analysis of financial statements revealed poor financial performance confirming that strategic planning practices by NSFs were not geared towards improving their financial health. strongly A good number also confirmed existence of setting of key planning goals agreed and strongly agreed = 71.4%; µ= 4.35; 0.733). These results show that there is lack of holistic approach to establishment of strategic planning platform and poor alignment of the elements that provide necessary prerequisite to strategic planning platform. This is in contradiction of Shapiro (1995) recommends alignment elements if an organization to have a sound for strategic planning. results confirm

3 directly and indirectly to the economy and welfare of individuals has also been recognized in Kenya (Mwisukha, 2003). However, the distinct contribution of sport to the GDP of Kenya is not clearly documented. Annual economic surveys bulk sport contribution together with Art, Entertainment & Recreation. According to Kenya National Bureau of Statistics 2015, between 2010-2015 Art, Entertainment and Recreation contributed on average 6198.6 million to the GDP but it was not categorical on what proportion of this was contributed by sport. Performance of National Sport Federations (NSFs) depends on how effectively they plan for production and consumption of their products (Stewart, 2007). National Sport Federations in Developed countries (DC) have exhibited sound financial performance compared to those in Developing countries (LDC). In terms of management, the NSFs in DCs have enjoyed professional management akin to that of commercial firms. In Australia NSFs are managed through a strategic planning model developed by Australian Sports Commission (Stewart, 2007). The National Sport Federations in Australia have progressively strengthened their financial performance. Consequently, a country that failed to win a single gold medal at the 1976 Montreal Olympics has become a global sports powerhouse. Similar Successes have also been witnessed in Europe and United States of America (USA) where NSFs have adopted contemporary sport planning model (Andreff, 1988). Many citizens in these countries have been able to earn a living from sports and related industries, with some turning it into their full time professional career. Strategic Planning (SP) is systematic, identifies priorities for action, sets objectives and organizes resources to enable the NSF to execute its strategic decisions which improve financial & nonfinancial performance (De wit & Meyer, 2014;Arasa & K'Obonyo, 2012;Mintzberg & Lampel, 1999;Porter, 1980;Armstrong, 1982;O'Regan & Ghobadian, 2002). Scholars recognize divergent approaches to strategic planning which have evolved over time . Many theories underpinning strategic planning support the link between strategic planning practices and organizational performance. Industrial Organization Theory presupposes that strategic planning should be based on clear understanding of the external environment of an organization. Organizations compete in dynamic environments that require careful analysis to isolate threats from opportunities, however, Industrial Organization theory on its own is inadequate since it assumes that competing organizations have equal access to external resources and all they need is to outsmart one another in terms of their planning architecture. Resource Based Theory has gained currency as it considers an organizations internal capacity as important in defining its strategic planning. Strategic Planning Process Theory explains how strategies are developed, implemented and changed to suit both internal and external environments of organizations. The three theories are complementary and jointly help in understanding the components of strategic planning. The concept of strategic planning has therefore evolved over time along two separate (but related) dimensions. These are planning completeness defining elements included in the plan, and commitment which shows how intensive planning guidelines were followed (Chae & Hill, 2000). The diverse views notwithstanding scholars converge on the view that strategic planning components include; establishing strategic planning platform, formulating financing strategies, developing implementation framework and monitoring and evaluation of the process. The second school of thought (Chae & Hill, 2000) asserts that Strategic Planning must be supported by Strategic Planning Intensity (SPI) for it to result in superior financial and non-financial performance (Maryan, 2012). According to Hopkins and Hopkins (1997) Strategic Planning 4 Intensity is the emphasis placed on components of Strategic Planning process by the management of an organization. This require that the management has the expertise to plan, devote sufficient resources to planning, develop a culture of planning-performance belief and establish structures that align strategies to size of the organization (Hopkins & Hopkins, 1997;Aldehayyat, Al-Khattab & Anchor, 2011;Karabulut & Efendioglu, 2010). Strategic Planning Intensity is a precursor of Strategic Planning which defines the details of the process. Whereas strategic planning articulates the components that inform planning, Strategic Planning Intensity expresses the commitment in planning consequently the results achieved. Kenya is well known as a sporting nation across the world, especially due to its achievements in athletics. National Sports Federations therefore compete for both public and private funding to develop their sports. However, as is the case with many developing countries, NSFs in Kenya have faced financial performance challenges. In recognition of the funding gaps, the government of Kenya made Strategic Planning a policy for NSFs in the hope of improving their Performance both on the field and off the field (GoK, 2002). Despite the existence of this policy for more than a decade, performance situation has not improved. Most NSFs in Kenya continue to display weak performance both financially and on field. Studies carried out on NSFs in Kenya; Obonyo (2013), Shehu (1998) and Mwisukha et al. (2007) revealed that NSFs persistently registered deficits in their annual income which adversely affected funding of their programmes. Records from Kenya National Sports Council indicate that most NSFs often fall short of their annual budgets, for example, in the period 2008-2013 most of them were unable to finance their budgets by 50-60%. This situation has persisted over time for instance; in 2019 most athletes across the various NSFs could not meet the qualifying standards for the 2020 Tokyo Olympic Games. The net effect is that the NSFs not only deny their athletes opportunity to develop but they are unable to get exposure in major international events such as the Olympics, Commonwealth games and All African games. Sport organizations that undertake strategic planning are known to exhibit favourable financial stability (Stewart, 2007) which improved their overall performance both on field and off field. Slack (1998;cited by Hoye & Cuskelly, 2007) in a study of Canadian national sport federations found that federations which were not engaged in strategic planning tended to over rely on state funding and showed lack of internal financial stability. In contrast, Winand (2009) in a study of NSFs in Belgium developed a measurement tool for analysis of NSFs financial performance found that national sport federations which embraced effective strategic planning enjoyed good financial balance. Since financial balance considers annual losses, profits and percentage of revenues not spent, it measures financial stability, and hence, strategic planning by NSFs in Belgium had a positive relationship with financial stability and improved sporting standards.
Whereas scholars link strategic planning to improvement in performance of commercial organizations (Arasa & K'Obonyo, 2012;Alaka et al., 2011;Bolo, Muturia & Oeba, 2006), some studies have registered modest positive and insignificant relationship (Boyd, 1991). However, the variations in findings have been attributed to methodological approaches and lack of clarity of strategic planning variables. It is evident that studies have tended to focus on commercial firms. Few studies carried out in NSFs in Kenya have been limited to description of weak financial health of the federations living a void on the link between strategic planning practices and performance of NSFs in Kenya measured in terms of financial performance or on field outcomes.

Statement of the Problem
Despite sport contributing to the Gross Domestic Product and welfare of individuals in Kenya, NSFs have over the years faced constrained performance both financially and in terms of sporting standards. This situation has slowed the rate of development in sport industry and inhibited the realization of economic potential of the sector. Having recognized the challenges of funding NSFs against competing budgetary priorities, the government made strategic planning a policy requirement for all NSFs in Kenya since the year 2002 in the hope that this would lead to overall improved performance. However, more than ten years after the introduction strategic planning policy, performance of NSFs in Kenya had not improved as had been anticipated. This is a complete opposite of successes witnessed in Europe, Australia and USA among others where NSFs have had both sound financial performance and on field success as a result of adoption of strategic planning initiatives. Consequently, the link between strategic planning and performance of NSFs in Kenya both on field and financially is unknown. It is also unclear the extent to which managements of NSFs are committed to strategic planning and whether this relates to the prevailing constrained performance despite adoption of strategic planning for more than a decade as a policy. This study sought to establish the status of strategic planning practices and financial performance of NSFs in Kenya.

Objective
To determine the status of strategic planning practices in National Sports Federations in Kenya

Research Design
This study adopted both descriptive and correlation research designs. A descriptive design was used to determine the level of strategic focus with respect to NSFs' financial allocation to its potential revenue generating activities and whether this considered diversification of revenue sources. Further, the design suited the study as it enabled the researcher to establish the application of strategic planning practices by the NSFs and its effect on revenue diversification capacity (Saunders et al. 2009). Correlation was deemed fit for the study since it helped test the hypothesis to establish relationship between the variables.

Area of Study
This study was carried out in Kenya among the National Sports Federations.

Target Population
The target population was 156 officials drawn from 39 active NSFs in Kenya who are affiliated to National Olympic Committee of Kenya (NOCK) and Kenya National Sports Council.

Sampling Design
Both purposive and random sampling techniques were employed. Four officials from each federation were purposively picked, specifically; the chairman, secretary, treasurer and organizing secretary (fixtures secretary) who form the top executive committee of the NSFs. They were considered as key respondents being centrally involved in planning. A random sampling 6 technique was considered suitable as it provided each NSF official with an equal chance of being selected for the study.

Data Collection
Both Primary and Secondary data were used in this study. Primary data constituted responses from NSFs officials while secondary data was drawn from documents and records kept by NSFs. Primary and secondary data were collected using questionnaire and protocol sheets respectively. The structured questionnaire consisted of close-ended Likert-type questions which made it easier to administer. It had pre-determined response choices to guide the respondents so as to obtain consistent responses. It was also less costly to administer and the respondents' choices were not influenced by the data collectors as might be the case with other qualitative instruments.

Data Instruments; Reliability and Validity
The questionnaire items were subjected to pre-testing through pilot study using 12 respondents from 3 NSFs that were not included in the main study in order to ascertain reliability and validity before embarking on the main study. Reliability was tested using internal consistency and registered Cronbach alpha value of between 0.781 to 0.926 implying that the test items correlate highly among themselves and had consistency in measuring the concept of interest. Face and construct validity was qualitative assessed by asking the opinion of officials used in the pilot, strategic planning professionals and professors from Maseno University School of Business and Economics on the suitability and adequacy of the research instruments.

Data Analysis
Descriptive statistical technique using frequencies, means and standard deviations was employed in data analysis. In order to establish the status of strategic planning practices each component of strategic planning was analyzed in terms of constructs that define the practice on a five point likert scale.

Response Rate
Out of a sample of 144 a total of 112 respondents returned filled questionnaires giving a response rate of 77.80% which was considered sufficient for a scientific study.

Strategic Planning Practices by NSFs in Kenya
Descriptive analysis of responses from NSFs officials was done to establish extent of strategic planning practices by National Sport Federations in Kenya. Strategic planning as a predictor variable was measured using four indicators. The indicators used were extent to which NSFs had: established strategic planning platform; formulated financing strategies; developed clear implementation framework as well as their efforts in monitoring and evaluation.

Establishment of Strategic Planning Platform by NSFs in Kenya
Extent of establishment of strategic planning platform was analyzed using ten constructs. The respondents were requested to rank statements that related to practices that establish strategic planning platform in their organizations using a Likert scale of 1-5 (Strongly Disagree; Disagree; Uncertain; Agree; Strongly Agree). They were also allowed to give remarks on alternative practices that actually existed in the organization other than what was stated where appropriate. Results are presented in   Table 4.2 indicate that majority of the respondents were uncertain on all the constructs of strategic planning platform. Most notable included: existence of alignment mechanism (59.8%, µ = 3.03, SD=0.677), setting key strategic initiatives (53.6%, µ = 3.13, SD=0.800), the fact that local branches, athletes and clubs set their own strategic and financial objectives and align it to their overall federation objective (48.2%: µ = 2.76) and need for clear understanding of the strategic plan (44.6%: µ = 3.18, SD=0.893). This implies that majority of the officials were not engaged in practices that helped in establishing strategic planning platform. Although, a number of respondents were uncertain, the high variability in standard deviation (0.677-1.02) indicating that the respondents fell between disagree and agree. This position was further confirmed by the remarks given by the respondents in the remarks column of the questionnaires. The results imply that the NSFs engage in practices that are associated with establishing strategic planning platform but in a haphazard manner. This is evidenced by the fact that a good proportion of respondents agreed and strongly agreed with existence of certain components of planning platform such as value clarity (agreed = 9 43.8%; strongly agreed = 20.5; µ=3.62; SD= 0.913). A good number also confirmed existence of setting of key planning goals (combined agreed and strongly agreed = 71.4%; µ= 4.35; SD= 0.733). These results show that there is lack of holistic approach to establishment of strategic planning platform and poor alignment of the elements that provide necessary prerequisite to strategic planning platform. This is in contradiction of Shapiro (1995) who recommends alignment of these elements if an organization has to have a sound platform for strategic planning. However, the results confirm observations by Thibault, Slack and Hinnings (1991) that raised two major concerns about strategic planning in sports federations by stating that in most instances, the individuals involved in the sports management are far more interested in sports participation and often used ad hoc approaches in planning. Secondly, for the voluntary organizations it is very often found that the individuals who spend all their working life in corporate firms planning were often reluctant to spend their spare time doing the same for sport organizations on voluntary basis. This left sport federations planning activities to popularly elected individuals who in most cases were not sound in strategic planning. The respondents strongly disagreed with existence of systems, controls and procedures (36.6%:µ=2.42) and that strategic planning and action planning were strongly linked (41. 1%: µ=2.22). This implies that most NSFs could easily fall prey to misallocation of funds to unplanned non-priority activities. Furthermore, funds could easily pilfer through officials who were not obliged to be accountable through formal systems, controls and procedures. Hoye and Cuskelly (2007) cited that national sport federations had to contend with weak governance systems which were manifested through poorly established processes which negatively affected their planning and overall financial condition. The extent of establishing strategic planning platform is encompassing and most previous studies cited looked at its aspects individually, the current study took a holistic approach which considered a combination of elements that constitute strategic planning platform and their complementarity (Shapiro, 1995). Results show the mean score for all items of strategic planning platform at 3.08. On a scale of 1 to 5 this means that the ratings were uncertain implying an overall weak establishment of strategic planning platform by National Sport Federations.

Formulating Financing Strategies by National Sport Federations
Extent of formulation of financing strategies was analyzed using five constructs that determine effective formulation of financing strategies by the National Sports Federations. Respondents were asked to rank statements which indicated practices and efforts that officials of the federations were putting in place to ensure formulation of sound financing strategies. Results are presented in  Results show that majority of the respondents were uncertain of most of the efforts being made in terms of formulation of financing strategies to address financial performance. High percentages of those who were uncertain were noted in the components such as the need to 11 develop strategic partnerships that are fairly accountable resulting into improved funding opportunities (43.8%: µ=2.98) and the fact that management set annual financial targets which are tracked and reviewed quarterly (48%:µ = 2.80). Majority of respondents confirmed that there was a weak marketing plan put in place by NSFs aimed at increasing revenue base (49.1%: µ = 2.09). It is only a small percentage of the respondents ranging from 8.0% to 17.0% who agreed and strongly agreed with the statements. The large percentage of those who were uncertain and those who disagreed with the components of the formulation of the financing strategies is an indication that formulation of financing strategies has not been taken seriously by the management of national sports federations in Kenya. This goes contrary to theory which allude a direct link between the qualities of strategies formulated and success in strategic planning, consequently leading to positive financial performance (Rogers et al, 1999).
These results confirm previous findings by researchers' that formulation of strategies has not been given attention by non-profit sports federations. A study by Thibault, Slack and Hinnings (1993) revealed that NSFs in Canada placed little importance on development of strategies. They further posit that a number of NSFs used the concept of situational strategizing; where the strategy developed reflect the organization's prevailing situation. Hence, different organizational situations will yield different strategies and different performance results. Ferkins, Shilbury and McDonald (2005) highlighted significant gap in the knowledge and understanding of strategy formulation by most boards that were charged with managing sports. The individual mean score for each of the items was below 3.0 with the mean score for all the items being 2.74. This means that there was high uncertainty by respondents implying low involvement in formulation of financing strategies by the majority of the NSFs officials. However, the high variability in the standard deviations indicate that the majority of them fall between uncertain and agree implying that quite a number of NSFs in Kenya employed ad hoc approach and placed little importance to strategy formulation. From the descriptive results it can be seen that officials of NSFs in Kenya have not given attention to comprehensive formulation of financing strategies. This could be responsible for their weak financial performance.

Developing Clear Strategy Implementation Framework by NSFs in Kenya
Extent of development of a clear implementation framework was analyzed using five constructs. The respondents ranked statements that relate to practices indicating the efforts which the federation management had put in place to ensure effective implementation of strategies in their organizations. Results are presented in Table 4.4. 13 =.935) and that roles are clearly defined and there is clear communication mechanism (51.8: µ = 3.07, SD =.867) as important components of developing a clear implementation framework. A relatively smaller proportion of the respondents agreed that there is strategy implementation matrix guiding implementation process (19.6%), the activities and actions to be implemented were budgeted for (34.8%) and that action plans have time lines (23.2%). The results are indicative of weak development of implementation framework by NSFs in Kenya. The mean for all the items stood at 2.95 which would mean that the respondents were unaware of the existence of clear implementation framework, however the standard deviations showed high variability meaning that most respondents fell between disagree and agree. The implication of this is that there is a great variation in the development of implementation frame works among the NSFs in Kenya. This situation confirm the argument by Yow et al. (2000) who identified three reasons that make sports organizations struggle to implement their plans. First, officials lack training and do not know how to plan. This lack of knowledge prevents them from planning and from expecting others in the organization to plan. Second, officials do not think planning is necessary and see the process of planning as additional work without significant reward. These officials fail to see the benefits of planning. Third, officials see problems with the implementation of plans. These officials may know how to plan and may know well the benefits of planning but don't believe implementation can be effective. Mintzberg (1994) and Miller (2002) posit that less than 50% of formulated strategies get implemented thus reducing the utility of strategic planning as a tool for improving performance. They further assert that every failure of strategy implementation is a reflection of weak formulation. This assertion is supported by Ferkins, Shilbury and McDonald (2005) who identified existence of a significant gap in the knowledge and understanding of strategy formulation by most boards that were charged with managing sports. The results show that NSFs generally lack clear implementation framework for their strategies and there is lack of coordination of implementation activities. The majority of the officials showed lack of knowledge and understanding of components of clear implementation framework.

Monitoring and Evaluation by National Sport Federations
Extent of Monitoring and Evaluation (M&E) of the implementation of strategic plans was analyzed using five constructs. Results are presented in Table 4 (2014) Results in Table 4.5 indicate that majority of the respondents with percentages ranging from 52.7% to 61.6% disagreed with the statements that indicated the extent of monitoring and evaluation as part of strategic planning. The response scores for all the M&E components were 2.51 and below implying that most respondents rated this element of their strategic planning practices fairly low. Further, all the standard deviations save for existence and use of M&E log frame were below 1.00 indicating little variation in responses captured. The results show that monitoring and evaluation as part of strategic planning was heavily weak within the national sports federations. According to Shapiro (1995) monitoring and evaluation of the strategic plan enable planners to regularly reflect on the extent to which the goals are being met and whether action plans are being implemented. The results agree with the assertions of Andreff (2001) that NSFs are characterized by weak governance devoid of structured monitoring of federation activities. Munayi (2000) revealed that most of the officials of NSFs were not trained in management, further Andreff (1988) that assessment of NSFs financial position was hindered by inadequate data. The above situations mean that the NSFs officials may not have the capacity to carry out monitoring and evaluation. The results in the current study indicate that NSFs are weak in terms of monitoring and evaluation of their strategic planning and this could be responsible for their weak financial performance.  Table 4.6 shows combined means and standard deviations representing extent of agreement/disagreement with practices that promote strategic planning based on each strategic planning component. The majority of respondents fell between agreeing and disagreeing with establishing strategic planning platform, formulating financing strategies and developing clear strategy implementation framework in their NSFs. Monitoring and evaluation suffers most as respondents were either disagreeing or were uncertain of existence of the practices. The implication of the results points to a weak entrenchment of strategic planning among the NSFs in Kenya. The results contradict the expectation prior to the study that NSFs had embraced strategic planning practices following policy enactment by the government of Kenya in the year 2002. The overall position is that strategic planning in NSFs is weak.