Strategic Planning as a Tool for Organizational Transformation in the Insurance Industry: Evidence from the National Insurance Corporation of Uganda

Abstract

This study investigates the effect of strategic planning practices on organizational transformation in the insurance industry, with a focus on the National Insurance Corporation (NIC) Uganda. Strategic planning has evolved globally from rigid, hierarchical frameworks to dynamic, innovation-driven models that are critical in guiding digitalization, product innovation, and customer-centric strategies in insurance. The research employed a cross-sectional descriptive design using quantitative and qualitative methods to assess planning practices at NIC and their influence on transformation outcomes. Regression analysis revealed a significant positive relationship between strategic planning and organizational transformation (R = 0.677, R² = 0.459, p < 0.05), indicating that 45.9% of variance in transformation can be explained by planning practices. Key strategic dimensions examined include goal setting, environmental scanning, stakeholder engagement, resource alignment, and monitoring. Despite progress, NIC faces challenges such as legacy systems, resource constraints, and inconsistent execution. The study concluded that strategic planning is a vital enabler for enhancing operational efficiency, innovation, and adaptability in Uganda's insurance sector. It is recommended that the insurance sector should strengthen resource allocation, standardize analytical tools, improve communication, and foster a culture of continuous improvement to sustain transformation. The study contributes to Strategic Management Theory and Kotter's Change Management Theory by demonstrating their complementary application in a resource-constrained African insurance context.