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Processes and Impacts of Strategic Management: Evidence From the Public Sector in the United Arab Emirates Said Elbanna  Pages 426-439 | Published online: 11 Apr 2013

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Abstract

This study presents the �rst substantial exploration of the processes and impacts of

strategic management in the public sector of the United Arab Emirates (UAE). It is

designed to survey the way in which public organizations formulate, implement, and

evaluate their strategic plans, and to identify which particular strategic management

elements are most closely related to their perceived impacts. Based on an analysis of

172 usable questionnaires from 67 organizations, the results show that the practice of

strategic management has become regular and standard and can be considered the

centerpiece of the public management reform in UAE public organizations over the

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1/25/22, 11:57 AM Full article: Processes and Impacts of Strategic Management: Evidence From the Public Sector in the United Arab Emirates

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centerpiece of the public management reform in UAE public organizations over the

last few years. Moreover, there is relatively high awareness of strategic planning tools

and the balanced scorecard is used as the framework for strategic planning by both

federal and local organizations. The study also shows that there is very little variation

in the practice of strategic management between federal and local organizations and

the impacts of this practice are largely bene�cial. The implications of these results for

practitioners and public management research are discussed.

 Keywords: strategic management strategic planning public sector United Arab Emirates

INTRODUCTION

Since its earliest days, strategic management has su�ered from �uctuating popularity

and e�ectiveness in its various guises. It �rst appeared in the 1950s and was very

popular between the mid-1960s and the mid-1970s. Then it su�ered a downturn in

popularity and e�ectiveness at the end of the 1970s and during the 1980s, because

many planning models did not perform well enough (Glaister & Falshaw, 1999; David

et al., 2011). Since then, strategic management has undergone substantial changes to

withstand what was seen as its main drawbacks, such as in�exibility, the ine�ective

participation of managers and implementers, and its want of strategic thinking and

creativity.

Consequently, during the 1990s, strategic management restored some of the

reputation that it had previously lost (Elbanna, 2007). It is now widely practiced in the

business world. In the public arena, there was a paucity of research addressing both

the theory and the practice of strategic management (Eadie, 1983). About three

decades ago, strategic management was introduced into the public sector (Poister &

Streib, 2005). There has been an increasing amount of research into strategic

management processes in public organizations ( Moore, 1995; Joyce, 1999), which over

recent years has been a frequently discussed topic in public administration journals

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In this article

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recent years has been a frequently discussed topic in public administration journals

(Streib et al., 2001), with much of the literature focusing on Western countries.

Many authors use the terms strategic management and strategic planning as

synonyms. The former term is more often used in academia, whereas the latter is

often used in the business world (David et al., 2011). Hence, how does strategic

management di�er from strategic planning? Strategic management is a more inclusive

concept than strategic planning, because it includes in addition to strategic planning

both the implementation and the evaluation of strategic plans ( Poister, 2005; Bryson,

2011). Over the last decade, research has looked beyond strategic planning itself to the

broader process of strategic management in the public sector (Poister & Streib, 2005).

Despite the prevalence of the processes of strategic management (Streib et al., 2001),

we have little academic knowledge of them in the UAE public sector.

As is discussed below, the UAE's position in the Arab Middle East makes the country a

good candidate for the purposes of this research, because of its distinctive context vis-

à-vis the research topic. The UAE is a federation of seven emirates (equivalent to

principalities), Abu Dhabi (the capital), Dubai (the most populated city), Ajman,

Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Quwain. The UAE possesses one of the

most developed economies in Western Asia. It is the 30 largest economy in terms of

market exchange rates. Its per capita income is the seventh highest in the world.

Among Asian countries, the UAE has a relatively high Human Development Index,

ranking 30 globally. The IMF classi�es it as a high-income developing economy. Islam

is its o�cial religion and Arabic its o�cial language. In 2010, the UAE's population was

estimated at 8,264,070, of whom only 13 percent were UAE nationals or Emiratis.

The president of the UAE is its head of state, and the Prime Minister is the head of the

federal government. The UAE government has three branches: the executive,

legislature, and judiciary. The UAE's Constitution allows a certain �exibility in the

distribution of authority between the federal and local governments. All

responsibilities not granted to the national government are reserved to the emirates.

Each emirate is governed by a hereditary emir and has its own local and autonomous

government. Rulers retain power within their emirates. While each emirate still

th

th

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government. Rulers retain power within their emirates. While each emirate still

maintains autonomy over its own territory, a percentage of its revenue is allocated to

the UAE's central budget. Corresponding to the federal institutions are the local

governments of the seven emirates. Varying in size, they have evolved with the growth

of the country. However, their mechanisms di�er from emirate to emirate, depending

on such factors as population, area, resources, and degree of development. For

example, the two largest and most populous emirates, Abu Dhabi and Dubai, have

their own central governing bodies, under which there are a number of separate

departments, equivalent to ministries. A number of autonomous agencies also exist,

with clearly speci�ed powers.

During the �rst decade of this millennium, formalized approaches to strategic

management processes have been popular and widely adopted in UAE public

organizations. This was mainly due to the adoption by federal and local authorities of

some practices of strategic management as part of their e�orts to develop the

institutional performance of government organizations. Through federal and local

mandates, federal organizations and local ones in both Abu Dhabi and Dubai are now

required to annually develop, implement, and assess their strategic plans.

There are four primary in�uences over Arabs in management, namely, Islam, the

Bedouin and wider tribal inheritance, foreign rule, and oil (Hickson & Pugh, 2003). The

UAE public organizations are characterized by a relative abundance of resources that

has helped them to adopt Western management approaches such as strategic

management processes. For example, at the beginning of this century, the incidence of

strategic management processes in the UAE was low and public organizations seemed

not to take strategic management seriously or practice it properly, while during the

last decade, major changes have taken place in the UAE regarding the practice of

strategic management and these deserve the attention of researchers (Elbanna, 2012).

Cultural insight can also help us to judge how certain strategic management processes

can most e�ectively be transferred from West to East.

Strategic management processes in the UAE's public organizations seem to me of

special importance at present, as the above discussion may have shown and hence I

1

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special importance at present, as the above discussion may have shown and hence I

would expect the timing and the location of this research to bring out certain

characteristics speci�c to the UAE. Moreover, despite the recent research e�orts on

strategic management processes in the public sector (e.g., Poister, 2005; Poister &

Streib, 2005; Andrews et al., 2006; Berry, 2007; Andrews et al., 2009 ), very little

research has examined these processes in the Arab Middle East, in general, and in the

UAE, in particular. Hence, this study is designed to �ll an important gap in the literature

by reporting the results of a survey on strategic management processes in the UAE

public organizations. Given that the worth of an academic study can be judged by the

extent to which its implications can help practitioners identify and explain phenomena

that are not obvious to them, this study is worthwhile.

In conclusion, this article sets out to develop a portrait of the practice of strategic

management in the UAE public organizations by shedding light on �ve broad issues

(see Figure 1). These are

1. characteristics

of strategic

FIGURE 1 Basic elements of the strategic management

processes.

Display full size

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1/25/22, 11:57 AM Full article: Processes and Impacts of Strategic Management: Evidence From the Public Sector in the United Arab Emirates

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of strategic

planning such

as its age and

time horizon;

processes.

2. strategic plan

development,

such as the role

of expertise,

interaction,

whether

intended or

emergent, and

strategic tools

and actions;

3. the activities of

strategic plan

implementation;

4. strategic plan

evaluation; and

5. strategic

planning

outcomes and

success factors.

RESEARCH DESIGN

This research was designed as a multi-method �eld study which employed both

quantitative (survey) and qualitative (interviews and examining organizational records) In this article

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quantitative (survey) and qualitative (interviews and examining organizational records)

methodologies (e.g., Elbanna & Naguib, 2009). Four aspects of the research design are

next addressed in turn—sampling, reliability and validity, the operationalization of the

study variables and interviews.

Sampling

The research site was restricted to the federal and local organizations in Abu Dhabi

and Dubai, because

a. most federal organizations are located in these two emirates,

b. local organizations in these two emirates alone are required to develop

strategic plans (though all the federal ones require it), and

c. over two-thirds of the UAE population live in these two emirates.

Some 136 organizations were targeted from May 2011 to August 2011 and 67

organizations responded (a 49 percent response rate) by completing 172 usable

questionnaires (on average 2.6 questionnaires per organization).

The sampled organizations were divided into federal organizations (43 percent) and

local organizations (57 percent). Of the organizations, 59 percent were located in Abu

Dhabi, while 41 percent were located in Dubai. The sample has a mean number of

employees of 1205. Of the respondent organizations, 37 percent had up to 250

employees, 41 percent had 251–1000 employees and 22 percent had more than 1001

employees. Thirty-three percent of the respondents were female, which may be an

indicator of the increasing importance of female managers in the UAE public sector.

Fifty-three percent of the respondents belong to top management (e.g., general

managers, managing directors, and sector executives) and 47 percent of the

respondents belong to middle management (e.g., departmental and section heads).

Reliability and Validity

One of the strengths of this study is that it depends on collecting data from multiple

informants for each organization to measure the study variables. An interrater

2

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informants for each organization to measure the study variables. An interrater

reliability analysis using the Kappa statistic was performed to determine consistency

among di�erent raters in each case. Kappa was found to range between 0.31 (fair

agreement) and 1 (almost perfect agreement) with an average of 0.69, which shows

substantial agreement across the answers of multiple informants in each case (Landis

& Koch, 1977).

Seventy-three percent of the respondents requested a summary report on the results

of this study which shows their interest in it and hence can be considered as an

indication of the care they gave when completing the survey (Finkelstein, 1992;

Elbanna & Younies, 2008). The possibility of common method bias was tested using

Harman's one-factor test. Since the study identi�es many factors, rather than one

single factor, and the �rst factor accounts for less than 30 percent of the variance,

common method variance does not appear to be a serious problem (Podsako� et al.,

2003). Some of the items in the questionnaire were reversed to reduce response bias.

The English version of the questionnaire was pre-tested by four scholars. Using the

parallel-translation method, items were �rst translated into Arabic by one scholar and

then translated into English by a second one. The two translators in addition to the

researcher jointly reconciled all di�erences. The Arabic version of the questionnaire

was then pre-tested by one scholar and three managers working in the UAE public

sector. An experienced and full-time research assistant collected the questionnaires

using a successful technique for collecting data in the Arab world, namely, personal

delivery and pick-up (Elbanna & Naguib, 2009). When distributing questionnaires, the

research assistant drew attention to the importance of the study and the bene�ts that

respondents could derive from participating in it. Having one person collect the

questionnaires contributed more to reducing bias than if several people had done this.

In order to ensure content validity, the questionnaires were distributed to managers

who take part in strategic management processes, have a bigger picture view of the

implementation of strategic plans, and are aware of the level of organizational

performance. Up to three follow-up telephone interviews were conducted with late

respondents. In this article

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respondents.

Operationalization of the Study Variables

Measures for operationalizing the variables were developed on the basis of an

extensive literature review. Five-point Likert-type scales, ranging from one to �ve,

were used to measure most of the study variables. Aggregated responses from

multiple respondents were used in data analysis.

Several variables were measured according to objective data provided by respondents.

These are organization size (number of full-time employees), length of experience of

strategic planning (number of years since the development of the �rst strategic plan),

strategic planning horizon (the time period of the most recent strategic plan),

preparation time (number of months to prepare the most recent strategic plan), and

size of strategic planning unit (number of full-time employees charged exclusively with

the strategic planning activities) (Yasai-Ardekani & Haug, 1997). Three questions in the

form of statements seeking agreement for the purposes of this study were developed

to measure the attitude toward strategic planning. A sample item is “top management

sees strategic planning as critical to an organization's success.”.”

Following (Hopkins & Hopkins, 1997), strategic planning expertise was measured by

asking respondents whether their organizations have enough expertise to perform

strategic planning. Two variables derived from previous research (Bourgeois & Singh,

1983; Sharfman et al., 1988) were used to measure political behavior. A sample item is

“Our strategic plan is personal-goals-oriented.” The strategy formation mode was

assessed following Titus, et al. (2011). A sample item is “formal strategic plans serve as

the basis for our actions.”

Examining the related research (Glaister & Falshaw, 1999; Elbanna, 2007; Aldehayyat &

Anchor, 2008 ) in addition to the results of the pilot study led to incorporating 12 tools

of strategic analysis in the survey. Respondents were asked to indicate to what extent

their organizations currently use these tools, scoring on the basis of a system of 1 =

not at all, to 5 = to a very great extent. The 5-item scale of Andrews et al. (2006) was

used to measure strategic action. One item, namely, improving current services, was

3

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used to measure strategic action. One item, namely, improving current services, was

added to the scale following feedback from the pilot study. Table 3 shows the six types

of strategic action considered in this study.

On the basis of the review of related literature on strategic plan implementation (e.g.,

Bryson, 2004; Poister & Streib, 2005; Wheelen & Hunger, 2012), a set of variables

covering the main activities of the implementation process was developed. A sample

item is “our organization developed speci�c initiatives and projects to put our strategic

plan into action” (see Table 4 for the full list).

With the related research in mind (e.g., Kaplan & Norton, 1996; Bryson, 2004; Poister &

Streib, 2005; Wheelen & Hunger, 2012), survey respondents answered a few

statements regarding four aspects of the evaluation of strategic plans in their

organizations, namely, structure, content, communication, and use. A sample

statement is “an independent organizational unit is responsible for the strategic plan

assessment process” (see Table 5 for the full list). Based on related research (Bryson,

2004; Poister & Streib, 2005; Elbanna, 2007; Wheelen & Hunger, 2012), respondents

were asked to indicate the extent to which strategic planning processes in their

organizations had generated either harmful or bene�cial impacts along four lines of

strategic planning outcomes, namely, strategic direction, �t with the environment,

communication with stakeholders, and performance. A sample item is “strategic

planning increased e�ectiveness in achieving the organization's objectives” (see Table

6 for the full list of proposed impacts).

Interviews

In addition to the survey, the researcher conducted interviews with six managers

working in organizational units responsible for strategic management processes and

seven people working in other units. The following are examples of the questions

included in the interview schedule:

1. Do you use consultants from outside your organization to contribute to the

preparation of strategic plans and performance management systems?

2 What is your comment on the quality of their services? In this article

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2. What is your comment on the quality of their services?

3. Are there experts within your organization to take part in the preparation of

strategic plans and performance management systems?

4. How do you assess their work?

5. Please describe the process of strategic planning in your organization.

6. What is your role in the strategic planning processes and performance

management in your organization?

7. Is there a positive impact of strategic planning on your organization?

8. How is it assessed?

9. Will your organization be a�ected negatively, positively or will there be no

e�ect if the organizational unit(s) responsible for strategic planning and

performance management is/are canceled?

10. Is the strategic planning unit in your organization over sta�ed and why?

Following Poister (2005), short follow-up interviews/conversations were conducted

with relevant people, after analyzing the completed surveys, to elucidate and probe

additional issues, such as the size of the strategic planning units in both federal and

local organizations. Using interviews, as a kind of triangulation of evidence, in addition

to multiple informants, helped to minimize the e�ects of the common problems

associated with single sourcing in related research (Dayan & Elbanna, 2011).

Data Analysis Techniques

Descriptive statistics, the Pearson correlation coe�cient, and the two-sample t-test

were used to develop a portrait of the practice of strategic management in the

sampled organizations. Moreover, this study used one of the parametric tests (the

regression analysis) to examine strategic planning outcomes in order to explore

success factors. Other statistical techniques such as the Kappa statistic and Harman's

one-factor test were used for methodological purposes.

RESULTS AND DISCUSSION In this article

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Strategic Management at a Glance

Written strategic plans

All the sampled organizations had written strategic plans (100 percent). This

percentage is signi�cantly higher than the 44 percent reported by Poister and Streib

(2005) in the United States municipal governments, suggesting a widely spread use of

strategic management in the UAE public sector. This is due to the fact that, since 2007

and even earlier in local organizations in Dubai, the federal government and local

governments, in both Abu Dhabi and Dubai, oblige public organizations to formally

develop, implement, and evaluate strategic plans.

Strategic planning age

Of the sampled organizations 77 percent developed their �rst strategic plan between

2007 and 2011, 20 percent of the sampled organizations developed their �rst strategic

plan between 2002 and 2006, and only 3 percent did so before 2002. This shows the

importance, since 2007, of UAE governmental directives in spreading strategic

management processes within local and federal organizations. The mean score for the

age of strategic planning in the sampled organizations was 4.2 years. The low mean

score, along with the above results, show that the practice of strategic management in

the public sector in the UAE is recent.

Strategic planning time horizon

The time periods of strategic planning range from 1 year to 5 years. The mean score

for the strategic planning horizon, for the sample as a whole, is 4.2 years. Most

organizations develop their plans for a period of either 3 years (43 percent) or 5 years

(41 percent). Few organizations produce plans for a period of one year (3 percent), two

years (7 percent), or four years (6 percent). The time horizon for strategic planning in

most federal organizations is 3 years (80 percent) and in most local organizations is 5

years (67 percent). In this article

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years (67 percent).

Preparation time

The mean score for the time taken over preparing strategic plans, for the sample as a

whole, is 5.4 months. Most of the organizations, in the whole sample and the sub-

samples, take either 1–4 months (36 percent–48 percent) or 5–8 months (39 percent–

50 percent) to prepare their strategic plans. There is little di�erence between federal

and local organizations with regard to the length of the preparation for strategic plans.

Size of strategic planning units

The mean score for the size of strategic planning units was 6.5 employees. The mean

score for federal organizations (4.2 employees) was signi�cantly (P < 0.05) below that

of local organizations (8.2 employees). As our interviews show, this is due to slack in

the resources of local organizations, compared to federal organizations, rather than

the needs of strategic planning compared to the human resources available.

Organizational level of strategic planning unit

Of the sampled organizations 98 percent have organizational units responsible for

strategic planning activities (sectors, (13 percent), departments (60 percent), and

sections (25 percent)). Sectors consist of several departments and departments consist

of several sections. The department is the most common organizational level in the

whole sample and sub-samples (54 percent–64 percent). Consistent with our previous

results on the size of strategic planning units, the level of these units in federal

organizations (mean = 2) tends to be lower than that of local organizations (mean =

2.4) (P < 0.05).

Attitudes toward strategic planning

The results show that our respondents have positive attitudes toward the importance

of strategic planning (means range from 3.7 to 4.3). A test of di�erence in means

shows that there is no signi�cant di�erence between federal and local organizations. In this article

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Strategic Plan Development

I argue that researchers can examine strategy development/formulation from two

perspectives. These are “how” a strategic plan is developed, that is, the strategy

process; and ‘what’ the content is of a strategic plan, that is, the strategy content

(Elbanna, 2006; Coulter, 2008). This study �rst discusses the strategy process by

examining the expertise of, and interaction between, the people involved in this

process, the mode of strategy formation, and tools of strategic analysis. Second, the

strategy content is addressed by examining di�erent types of strategic action.

First, Strategy Process

Strategic planning expertise

The mean scores for having enough expertise to perform strategic planning were

above the mid-points of their scales (means range from 3.7 to 4.0 with no signi�cant

di�erence between federal and local organizations (P = 0.18). Similarly, the mean

scores for the signi�cant role of internal advisors were above the mid-points of their

scales (means range from 3.4 to 3.7 with no signi�cant di�erence between federal and

local organizations, P = 0.35). These two statements together indicate that in the UAE

public sector, providing the human resources required for developing strategic plans is

not an obstacle. However, the mean scores for the role of external consultants were

slightly above or below the mid-points of their scales (means range from 2.8 to 3.2

with no signi�cant di�erence between federal and local organizations, P = 0.07). These

results may be due to the nature of the study setting, where 98 percent of sampled

organizations have specialized units for strategic planning; they were indeed found to

have strategic advisors and people with enough expertise in preparing strategic plans

(see above). Hence, there is less need on the parts of the sampled organizations for

external consultants.

As reported by several interviewees, this was not the case a few years ago when their

organizations �rst started the strategic planning journey. At this time, the default In this article

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organizations �rst started the strategic planning journey. At this time, the default

practice was to use external consultants, generally with very limited participation from

the employees themselves. Later on, many public organizations were not happy with

their �rst strategic plans; hence, they started to build their internal capabilities by

hiring internal advisors and intensively training their own employees on strategic

planning.

Now, we are selective in using the services of outside consultants, “an interviewee

said.” Our journey with strategic planning was a learning process; I am glad that I built

this unit from nothing. I hired several employees and trained them. Now they are able

to do what big consulting �rms can provide us with and hence no need to use external

consultants any more” stated a manager concerning his decision to stop using the

consulting services of an international �rm and to use instead his own sta� and two

internal advisors to develop a new 5-year strategic plan.

Interaction

The interaction among people is a critical determinant of strategy success (Wooldridge

& Floyd, 1990; Coulter, 2008). This study examines two important aspects of

interaction, namely, participation and political behavior. Respondents in the whole

sample and sub-samples see that the participation of people who became involved in

developing strategic plans was e�ective (means range from 3.8 to 3.9), with no

signi�cant di�erence between federal and local organizations (P = 0.68).

Two statements in Table 1 examine the political behavior in the strategic planning

process. The mean scores for the statement that a “strategic plan is a compromise

which accommodates the con�icting interests of powerful groups and individuals”

were a little above the mid-point (means range from 3.1 to 3.3, with no signi�cant

di�erence between federal and local organizations, P = 0.21). Moreover, there is broad

disagreement as to whether the strategic plan is personal and goals-oriented (means

range from 2.2 to 2.4). There is little di�erence between the sub-samples and no

signi�cant di�erence was found (P = 0.38). The means of both statements are less than

the midpoint of three for the whole sample and sub-samples (means range from 2.3 to In this article

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the midpoint of three for the whole sample and sub samples (means range from 2.3 to

2.7). The above results indicate that political activity may not play a major role in the

strategic planning process in the sampled organizations. This result, however, should

be interpreted with caution, since managers worldwide tend not to admit the true

levels of the political behavior in strategy processes (Child et al., 2010).

Strategy formation mode

The strategy formation mode refers to the way in which organizations develop their

strategies. While some organizations do so through an explicit, formalized, and

planned method, other organizations unintentionally do so by following an emergent

route (Mintzberg & Waters, 1985).

The mean scores for following structured procedures and planning manuals to

perform strategic planning were above the mid-points of their scales (means range

from 3.6 to 3.8) and those for using formal strategic plans as the basis for actions were

also well above the mid-points of their scales (means range from 3.9 to 4.0). However,

the mean scores for the statements that “our strategic plan is typically planned in

advance … \ was near the mid-points of the scale (means range from 3.2 to 3.3). For

the above three statements, there were no signi�cant di�erences between federal and

local organizations (P = 0.13, 0.52, 0.50 consequently). Although these results reveal a

high level of formality in preparing strategic plans and the fact that these plans are

used as the basis for actions, the relatively low score for the third statement shows

that strategic plans, in some cases, may emerge over time during their implementation

process.

Judging from the comments of a number of our research participants, this may be due

to the new policy directives that public organizations receive from central authorities

TABLE 1 Interaction and Strategy Formation Mode

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to the new policy directives that public organizations receive from central authorities

and hence the need to update their strategic plans accordingly. “Our budget was cut

by more than 70 percent. We must, therefore, modify our strategic plan and cancel all

strategic initiatives which have not started yet, in addition to many of these which have

only just started and can be cancelled,” an interviewee said. Our survey provides

empirical support for this judgment. The mean scores for the statement that

“instructions of the federal or local authorities are important in driving performance

improvement e�orts” was largely above the mid-points of their scales (mean = 4.3 with

no signi�cant di�erence between federal and local organizations, P = 0.60). The recent

practice of strategic management in the sampled organizations, as reported above,

and the rapid changes in the UAE contribute to the need to update strategic plans

during their implementation processes.

Tools of strategic analysis

Table 2 shows the tools of strategic analysis, ranked by mean response, from the

whole sample. It also indicates the percentages of respondents who are not familiar

with each tool. The �rst seven tools exceed the median measure. Little use is made of

the last �ve tools, which are obviously below the median measure. It cannot be

claimed that it is only the ease of application that determines the type of tool used in

strategic analysis. For example, the �rst group of tools, which exceed the median

measure, includes both the balanced scorecard, which requires more demanding skills

to use e�ectively, and SWOT analysis, which requires less demanding skills. Similarly,

some of the less used tools are classic tools of strategic analysis and are easy to use,

such as value chain analysis, while the use of others, such as strategic planning

software, needs more talent or �nancial resources.

Hence, I argue that other determinants of the type of tool used in strategic analysis

may be important, such as the need to use a tool in order to improve organizational

TABLE 2 Use of Strategic Analysis Tools

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may be important, such as the need to use a tool in order to improve organizational

performance, overcome certain organizational problems, or meet the requirements

and guidelines of higher authorities.

For example, in his presentation of the Dubai Strategic Plan 2015, on February 3, 2007,

the Ruler of Dubai, said, “When we say Dubai is a global city, we mean the

implementation of international standards and best practices in the details of our lives,

work, institutions and society … I want all governmental and national departments and

organizations to transform the plan into a working culture and a way of life.” These

statements were translated by local organizations in Dubai through the wide use of

benchmarking to adopt best practices from all over the world.

Although the balanced scorecard is a newer tool than many of the others listed, such

as Porter's 5-forces analysis, it is frequently used. This is not surprising, since the

interviews show that the balanced scorecard is adopted as a strategic management

framework by both federal and local authorities.

Table 2 shows that the percentages of respondents who are not familiar with the

identi�ed tools of analysis range between 4 percent and 22 percent. On average, 10

percent of the sample is not familiar with the tools that go below the median measure;

while 17 percent of the sample is not familiar with the tools which go above the

median measure. Only 4 percent of the sample is not familiar with SWOT analysis. This

is an unsurprising result, since many practitioners and scholars consider SWOT

analysis to be the most common strategic analysis tool.

Finally, the results in Table 2 show that there is very little variation in rank order of the

tools of analysis between federal and local organizations. A test of di�erence in means

between the two groups of organizations indicates only one signi�cant di�erence, that

regarding the use of strategic planning software (P = 0.04). This has a signi�cantly

higher use in federal organizations than in local organizations, although neither group

of organizations makes great use of this technique of analysis. Future research needs

to examine the reason behind the infrequent use of this technique and the di�erence

between the two sectors.

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between the two sectors.

Second, Strategy Content

Strategic action

Strategy content is “a pattern of action through which (organizations) propose to

achieve desired goals, modify current circumstances and/or realize latent

opportunities” (Rubin, 1988, p. 88). It is at the heart of governmental attempts to

enhance public services (Pollitt & Bouckaert, 2004). Strategic action is an important

dimension of strategy content (Boyne & Walker, 2004) which is based on the speci�c

types of action that an organization may take to operationalize its strategic stance

(Andrews et al., 2006).

Table 3 shows six types of strategic action ranked by mean response. The greatest

emphasis is on private-sector involvement and partnership with others. This is not a

surprising result in the UAE context, since outsourcing and strategic partnerships

represent fundamental parts of strategic plans at both federal and local levels. For

example, many local organizations have been downsized using outsourcing. “We had

several thousands of drivers. Hence, outsourcing the transportation activities to

private companies helped us to concentrate our e�orts on our core business,

municipal services,” a manager from a local organization said. This was a common

action taken by many public organizations in the UAE. Similarly, examining the archival

documents of a local organization shows that “encouraging public and private

partnerships and strategic networks” is a priority area among six priorities which

strategic objectives should be linked to.

The other areas which receive great emphasis are improving current services,

providing existing services to new users, providing new services to existing users, and

TABLE 3 Strategic Actions

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providing existing services to new users, providing new services to existing users, and

adopting new approaches to improvement. Although the lowest emphasis is on raising

income, the mean of this action is high (mean = 3.8). Table 3 shows that there is very

little di�erence in the means between federal and local organizations (P values range

from 0.35 to 0.73).

Strategic plan implementation

Strategic plan implementation refers to the activities and actions required for the

execution of the plan. It measures how far the processes of implementing the strategic

plan in organizations address all the major activities that are required to put the

strategic plan into action. It can be de�ned as “the communication, interpretation,

adoption, and enactment of strategic plans” (Noble, 1999, p. 120). Although it is widely

perceived as a signi�cant determinant of performance, little research on strategy

implementation in the public sector has been carried out (Andrews et al., 2011).

Table 4 shows to what extent the sampled organizations use the set of activities and

actions required for executing a strategic plan, ranked by the mean response of the

whole sample. The �rst ranked statement is “our organization developed speci�c

initiatives and projects …” This is not a surprising result, since developing initiatives

and projects is the central activity of any implementation plan and without such

activity no organization can assume that it systematically implements its strategic plan.

The next three statements are all related to top management. They show that top

management e�ectively acts to make strategic plans work (mean = 4.0) and modi�es

organizational culture to make it compatible with the strategic plan (mean = 3.9);

moreover the evaluation of top management is based on the successful

accomplishment of the strategic plan (mean = 3.9). This shows the important role of

top management in the implementation of strategic plans (e.g., Niven, 2008) and

re�ects the positive attitudes of top management (mean = 4.3) to the importance of

strategic planning, as discussed earlier.

TABLE 4 Strategic Plan Implementation

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Similarly, there appears to be a greater consideration of other activities/actions

required for the e�ective implementation of strategic plans, such as linking budget to

objectives, changing organizational structure and human resource practices, and

evaluating managers on the basis of their contribution to strategic plan

implementation (means range from 3.7 to 3.9). The mean score of the statement that

“everything we do in our organization is based on our strategic plan” is obviously

above the median score (mean = 3.6). This may imply that strategic plans may

represent the master plan that is re�ected in all activities of the sampled

organizations. It may also show that the sampled organizations have moved from the

stage of strategic planning to that of strategic doing by being able to put their plans

into action. The mean score of the statement that “the incentives given to employees

and managers re�ect their success in achieving strategic objectives” is above the

median score (mean = 3.3). However, this raises the questions of why this statement

attains the lowest mean score. This can be considered a challenge that needs

additional consideration from the sampled organizations.

Table 4 shows that there is very little variation in means between federal and local

organizations (P values range from 0.41 to 0.99). Finally, though all the discussed items

clearly exceed the median measure, care must be taken when interpreting these

results since they assess how far the sampled organizations carry out activities but not

the e�ectiveness of such activities.

Strategic Plan Evaluation

Strategic plan evaluation refers to the activities and actions required for assessing the

strategic plan. Similar to strategy implementation, research on strategy evaluation in

the public sector has rarely been undertaken. Regarding structure, as shown in Table

5, the statement that “an independent organizational unit is responsible for the

strategic plan assessment process” attains a mean score well above the median score

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strategic plan assessment process attains a mean score well above the median score

(mean = 3.8). Examining organizational records and interviews with respondents

shows that it is common in both federal and local organizations to �nd independent

organizational units responsible for the evaluation of strategic plans. In some cases,

these units are equivalent to units responsible for strategic planning, while in others

they are sub-units of those responsible for strategic planning. This re�ects the support

given to strategy evaluation from top management.

Two statements were used to assess the content of performance measures. The �rst

statement that organizations use di�erent types of performance measures has a high

mean score (mean = 3.9). This is consistent with our previous �ndings on the wide use

of the balanced scorecard as a framework of strategic management. The second

statement that organizations benchmark performance measures against other

organizations is also well above the median score (mean = 3.5). This shows the

external orientation of the sampled organizations in designing their performance

measures. The interviews showed an increasing interest to benchmark performance

measures.

Three statements on reporting performance measures associated with the strategic

plan were addressed. The �rst two statements on regularly reporting performance

measures to both top management and concerned departments were above the mid-

points of their scales (means = 4.1 and 4.0 consequently). These results show the

degree of attention that the sampled organizations give to communication with the

internal parties concerned regarding performance measures. In contrast, the mean

score of reporting performance measures to the public and stakeholders is far less

than those of the previous two statements (mean = 3).

The mean scores of the last three statements—on the use of the results of

performance measurement to track the implementation of initiatives, the

TABLE 5 Strategic Plan Evaluation

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performance measurement to track the implementation of initiatives, the

accomplishment of the objectives, and also to take corrective action—are all well

above the median score (means range from 3.8 to 4.0). This gives additional support to

our previous argument that the sampled organizations have moved from the stage of

strategic planning to that of strategic doing. Table 5 also shows that there is very little

variation in means between federal and local organizations with no signi�cant

di�erences (P values range from 0.25 to 0.97).

EXPLORING STRATEGIC PLANNING OUTCOMES AND SUCCESS FACTORS

This part examines the strategic planning outcomes using regression analysis in order

to explore success factors. This is an important aspect of this study since little evidence

exists on the consequences of strategic management processes (Noble, 1999),

although it is increasingly considered a primary mean to enhance organizational

performance (Meier et al., 2007).

Strategic Planning Outcomes

The means of the ten statements in Table 6 range from 4.0 to 4.3, showing that

strategic planning generated bene�cial or very bene�cial impacts along the four lines

of outcomes, namely, strategic direction, �t with the environment, communication with

stakeholders, and performance. Moreover, there is no signi�cant di�erence in the

means of the ten statements between federal and local organizations (P values range

from 0.21 to 0.88).

Table 6 clearly shows that strategic planning has helped the sampled organizations to

follow a strong strategic direction in terms of developing clear vision (mean = 4.3),

TABLE 6 Strategic Planning Outcomes

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follow a strong strategic direction in terms of developing clear vision (mean 4.3),

uni�ed mission (mean = 4.2), shared values (mean = 4.0), and clear priorities (mean =

4.2). It also helped in achieving a good �t between the external environment and

internal capabilities (mean = 4.0), getting support from higher governmental bodies

(mean = 4.1), and e�ectively communicating with external stakeholders (mean = 4.2).

Finally, strategic planning has a positive impact on three aspects of organizational

performance, namely, achieving organizational objectives (mean = 4.1), increasing the

e�ciency of operations (mean = 4.1), and delivering high-quality services (mean = 4.2).

These results show that the impacts of strategic planning in the UAE federal and local

organizations are largely bene�cial.

Success Factors

Following Poister and Streib (2005), the 10 outcome variables listed in Table 6 were

combined into an unweighted additive index of overall outcome. This index could

range from a minimum of 10 (all very harmful impacts, coded 1) to a maximum of 50

(all very bene�cial impacts, coded 5). The outcomes index in the sampled organizations

ranged from 25 to 45, with a mean average of 37 and a standard deviation of 4. Given

that a neutral average between harmful and bene�cial impacts would be 30 (coded 3 *

10 statements), the actual mean of 37 in this study represents a substantially favorable

rating. To gauge the most critical factors of success—those that directly contribute to

the highest values on the outcomes index—I performed regression analysis using the

additive outcomes index as the dependent variable. Due to the high number of

independent variables (49) and the sample size (N = 67), di�erent sets of stepwise

regression analysis were run. These sets comprise one for each block of the following

independent variables.

Attitude and expertise

Regressing the perceived strategic planning outcomes on the six variables

representing the attitude to strategic planning and the expertise of people involved in

the strategic planning process indicates that these variables explained 41 percent (P ≤

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0.01) of the variation in the perceived strategic planning outcomes, with two signi�cant

variables:

• Top management sees strategic planning as critical to an organization's success

(β = 0.48, P ≤ 0.01).

• Our organization has enough expertise to perform strategic planning (β = 0.29, P

≤ 0.01).

Interaction and formality (Table 1)

The stepwise model incorporating the six components of interaction and strategy

formation mode explained 42 percent (P ≤ 0.01) of the variation in the perceived

strategic planning outcomes, with two signi�cant variables:

• Formal strategic plans serve as the basis for our actions (β = 0.52, P ≤ 0.01).

• Our strategic planning procedures can be described as largely structured, with a

planning manual (β = 0.31, P ≤ 0.01).

Strategic actions (Table 2)

Analysis of the six variables representing strategic actions produced a model that

explained 34 percent (P ≤ 0.01) of the variation in the perceived strategic planning

outcomes, with three signi�cant variables:

• Providing existing services to new users is a major part of our strategy (β = 0.27,

P ≤ 0.05).

• Developing new ways of raising income is a major part of our strategy (β = 0.32, P

≤ 0.05).

• Providing new services to existing users is a major part of our strategy (β = 0.22,

P ≤ 0.05).

Strategic analysis tools (Table 3)

Regressing the perceived strategic planning outcomes on the 12 tools of strategic

analysis indicates that these tools explain 21 percent (p ≤ 0.01) of the variance in the In this article

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analysis indicates that these tools explain 21 percent (p ≤ 0.01) of the variance in the

perceived strategic planning outcomes, with one signi�cant variable only, strategic

planning software (β = 0.46, P ≤ 0.01).

Strategic plan implementation (Table 4)

The stepwise model incorporating the ten components of strategic plan

implementation explained 70 percent (P ≤ 0.01) of the variation in the perceived

strategic planning outcomes, with three signi�cant variables:

• Our organization developed speci�c initiatives and projects to put our strategic

plan into action (β = 0.17, P ≤ 0.05).

• Our top management e�ectively acts to make our strategic plan works (β = 0.23,

P ≤ 0.05).

• Everything we do in our organization is based on our strategic plan (β = 0.57, P ≤

0.01).

Strategic plan evaluation (Table 5)

Regressing the perceived strategic planning outcomes on the eight components of

strategic plan evaluation indicates that these components explain 61 percent (p ≤ 0.01)

of the variance in the perceived strategic planning outcomes, with two signi�cant

variables:

• Our organization regularly reports performance measures associated with the

strategic plan to top management (β = 0.29, P ≤ 0.05).

• Our organization takes corrective actions based on reported performance

measures (β = 0.57, P ≤ 0.01).

Overall analysis

Finally, I simultaneously regressed the outcomes index on the 13 signi�cant variables

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resulting from the previous regression analyses. The resulting stepwise regression

model incorporates three signi�cant variables that explain 71 percent of the overall

variation in the outcomes index:

• Our organization developed speci�c initiatives and projects to put our strategic

plan into action (β = 0.31, P ≤ 0.01).

• Everything we do in our organization is based on our strategic plan (β = 0.58, P ≤

0.01).

• Strategic planning software (β = 0.18, P ≤ 0.05).

The �rst two critical success factors pertain to elements to do with strategic plan

implementation, which is consistent with the results of the related literature that

implementing strategic plans is widely accepted as a critical element of strategy and

one which can have a signi�cant impact on organizational performance (Andrews et

al., 2011), and that it is an aspect of management where many organizations fail (Nutt,

1999). Similarly, Brenes et al. (2008) contend that the systematic execution of strategy

is a signi�cant determinant of strategy success and a critical cornerstone in the

building of a capable organization. However, it is hard to tell if weak performance is

due to the good implementation of a bad strategy, or to the poor implementation of a

good strategy (Crittenden & Crittenden, 2008). The last critical success factor pertains

to strategic analysis tools.

Caution should be used before generalizing or interpreting these three variables, or

the 13 variables above, as the most critical factors of success in the strategic

management process. Rather, these variables should be viewed as pioneering

elements that help the sampled organizations to strengthen the outcomes of the

strategic management process.

CONCLUSION

This article builds up a portrait of the practice of strategic management in the UAE

federal and local organizations by surveying the extent to which the UAE public In this article

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federal and local organizations by surveying the extent to which the UAE public

organizations use strategic management processes and by exploring the leading-edge

factors that help to strengthen the impact of strategic management.

It may be concluded from the above �ndings that there is great use of strategic

management processes in the UAE's public organizations, that people are less

reluctant to apply these processes, and, in general, that the organizations studied

adopt an explicit and deliberate approach to strategic management. This shows that

the practice of strategic management in the UAE public organizations is going well and

the sampled organizations obtain bene�ts from a classical approach to strategic

management, despite their recent awareness and practice of this approach. There may

be several reasons for this, such as the availability of resources, talents, and experts,

and the support of higher authorities. I would suggest that many UAE managers in the

public sector may venture to see strategic management processes widely and

successfully used in their organizations before others do.

The results show that, beyond strategic planning itself, the sampled organizations have

also focused on the broader process of strategic management. This is re�ected in a

quote from a speech by the Ruler of Dubai: “The Dubai strategic plan does not

constitute a collection of mute words and static texts. It represents a way of thinking, a

tool by which to measure and evaluate. It is a map that outlines our path to the future,

helping us to make the right choices and reach accurate conclusions.”

Although strategic management is a recent practice in the UAE public sector, it has

become a centerpiece of orthodox public management. For example, in April 2008, the

Secretary General of the Executive Council of Abu Dhabi said,

Yet another major achievement by the Government of Abu Dhabi brings us

together today for the announcement of the strategic plans for the various

departments, authorities and institutions, in translation of the public policy

agenda … The coming stage is one of continuous e�ort to implement the

plans and attain the goals set.

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plans and attain the goals set.

Interestingly, very little di�erence was found between federal and local organizations

with regard to most aspects of strategic management processes. This is a surprising

result, considering the argument of Backo� et al. (1993) that the strategic behavior of

di�erent types of public organizations will be quite di�erent because of their

institutional setting and context. We can attribute this surprising result to the recent

practice of strategic management, the similar approaches of strategic management

used by the UAE public organizations such as the balanced scorecard, and the similar

institutional settings of the sampled organizations. For example, strategic planning

began in the center of the Emirate of Dubai at the beginning of this century. In 2007,

the Ruler of Dubai, who is the Prime Minister of the UAE, duplicated Dubai's

experience of strategic planning in the federal organizations. In 2007–2008, the local

institutions in the Emirate of Abu Dhabi started to strategically plan following similar

approaches. I contend that the practice of strategic management in Dubai had been

viewed as best practice and consequently followed by other public institutions in the

UAE. The evidence from my interviews con�rms this belief, where many participants

see the practices and performance of governmental institutions in Dubai as a model

that deserves to be followed.

Previous results do not mean that the practice of strategic management in the UAE

public sector is without �aws or that it is at the same level of e�ciency in all

organizations. The comments of a number of research participants clearly reveal this

point. “I do not know what my role is. I am not aware of strategic management

processes,” an employee in a strategic planning department said. “If the units

responsible for strategic planning and performance management are cancelled, our

organization will not be negatively a�ected … we add no value,” a disappointed

participant commented on the performance of strategic management units.

“There is a huge gap between the capabilities of people working on performance

management processes … some are highly quali�ed and others know and do nothing,”

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“We need to simplify the strategic planning process and avoid using new techniques at

least until we understand and excel in what we already do,” a participant commented.

“Achieving buy-in to our strategic plan is problematic … the general manager and top

executives do not believe in strategic planning,” was a comment made by one

participant and echoed by others.

A possible reaction to the above comments is to say that, although the UAE public

organizations have made great progress in the use of strategic management

processes, the recent introduction of such processes requires extra e�ort and time to

accomplish e�ectively. As an expert noted, “this is a learning curve … accepting this

fact will help us to improve our current practices of strategic planning.” The analysis of

these comments shows that there is a wide range of issues concerning strategic

management processes that can a�ect their impact and hence should be examined by

future research. These are, for example, the capabilities of strategy sta�, the structure

of organizational units in charge of strategic management processes, and the softer

roles of planners such as communication. This will help us to move from the stage of

examining the extent to which organizations use strategic management processes to

that of asking how and why organizations should practice these processes.

Finally, I argue that the practice of strategic management can go through three stages:

1. plan to archive,

2. plan to act, and

3. plan to act e�ectively and positively impact on organizational performance and

the quality of public services.

This study shows that the sampled organizations have already reached the second

stage. The challenge now facing the UAE public organizations is to move quickly to the

third stage in order to enhance the fortunes of the UAE; otherwise they may start to go

backwards.

Considering that this study collected data from federal organizations and local ones in

Abu Dhabi and Dubai and that the UAE is a federation of seven emirates, each In this article

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Abu Dhabi and Dubai and that the UAE is a federation of seven emirates, each

governed by a hereditary ruler, the above �ndings cannot be generalized to local

organizations located in the remaining �ve emirates, namely, Ajman, Fujairah, Ras al-

Khaimah, Sharjah, and Umm al-Quwain. The use of strategic management processes in

these �ve emirates is still limited, discretionary, and supported less by local

authorities. This has practical implications for these Emirates and other Arab countries

that do not widely practice strategic management. For example, those venturing into

the unknown territory of strategic management in the future need to learn from

experienced organizations, such as the sampled organizations, in order to avoid the

danger of costly failure in the public sector application of strategic management

(Eadie, 1983).

Notes

This research was funded by the National Research Foundation in the UAE (RSA-1108-

00788). An earlier version of this paper was presented at the APMAA 2012 Annual

Conference, Xiamen University, China.

Information on the UAE obtained from Retrieved November 3, 2012, from http://ww

w.government.ae/web/guest/politics, http://www.uaeinteract.com/government/politica

l_system.asp and http://en.wikipedia.org/wiki/United_Arab_Emirates#United_Arab_Emi

rates_Government

Retrieved November 3, 2012, from http://www.Wikipedia.com

The questions and statements used to measure any of the study variables are

available from the researcher upon request.

Retrieved, May 15, 2012, from http://www.sheikhmohammed.ae/vgn-ext-templating/

v/index.jsp?vgnextoid=321b4b7922e44110VgnVCM1000003f140a0aRCRD&vgnextchan

nel=b0b24c8631cb4110VgnVCM100000b0140a0aRCRD&vgnextfmt=default&date=117

0500976877&mediatype=EVENT

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