The purpose of this study was to assess the status of strategic planning formulation and implementation and to identify the challenges, and to improve possible recommendations for the problems identified. To achieve these purposes, basic questions related to what opportunities (stakeholders' participation and institutional capacity) available for the formulation and implementation of strategic planning and major problems that have been facing the formulation and implementation of strategic planning. Descriptive survey method of study was employed. The target population of this study was primary schools principals, department heads, teachers, PTA members and WEO head. There are 28 primary schools in Woe-illu woreda. For the purpose of this study 10 (35. 7%) of the primary schools were selected using cluster sampling. Sample principal, teachers, PTA members and WEO heads were selected using comprehensive sampling. The questionnaire was distributed for 60 principals & department heads, 78 teachers and 50 PTA 's members. From 188 totally distributed questionnaires 176 (93.6%) questionnaire were properly filled and returned. Interviews were conducted with sample primary schools principals and WEO heads and document of strategic plan of sample primary schools were consulted. Then the data obtained from questionnaire were analyzed using one-sample t-test. The finding of the study revealed that participation of stakeholders' in both planning formulation and implementation was low. Institutional capacity in terms of skilled manpower, financial and material resources availability and management, and adequacy of information and data were at low level. Lack of stakeholders' participation, lack of adequate information and data, scarcity of financial resources, shortage of educational materials, shortage administrative skilled man power, absence of stability of principals, inconsistence monitoring and evaluation mechanisms, and inconsistent support and follow up of WEO were among the major factors that affect the formulation and implementation of strategic planning. Generally, it seems that in primary schools of Woreillu woreda south Wallo zone, the effort of school principals' to increase the awareness. and sense of belongingness and ownership of stakeholders', to develop institutional capacity of primary schools for proper formulation and implementation; of strategic planning was found at low level So to solve the major problems encountered with strategic planning formulation and implementation some possible solution was recommended. This includes: school principals should be clear the benefits and purpose of strategic plan for stakeholders', participate stakeholders. in every decision making and evaluation ofstrategic planning formulation and implementation. School principals with KETB and PTA members will be mobilized the community to support necessaryfinancial and material resources. School principals should be developing team work, create conducive environment and ensuring democratic and professional management. To develop capacity of school leaders those concerned bodies will have to be designing and providing capacity building training and studying the cases of principal 's turnover and give timely solution. As the result of this, increasing the awareness of stakeholders and developing the [ormulation and implementation of strategic planning capacity of school by minimizing the problems that affect the proper formulation and implementation of primary schools strategic planning and maximizing proper utilization of available resources in order to achieve the desired goal.

A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE'OF MASTER OF ART EDUCATIONAL MANAGEMENT AND PLANNING