PLAN

NING
DEFINITION OF PLANNING
PLANNING PROCESS
STRATEGIC PLANNING
OPERATIONAL PLANNING
STRATEGIC Vs. OPERATIONAL PLAN
TYPES OF PLANNING

DEFINITON
Planning has been defined by management expert Peter Drucker as
the management function that includes decisions and actions to
insure future results."
Perspective

forecasting and budgeting

long range planning
Strategic planning
Strategic management

Planning Process

Establishing objectives or goals

Seeking necessary Information
Establishing the planning premises
Identifying the alternative course of action.
Evaluating the alternatives.
Selecting the best alternative
Follow up

Nature of Planning

Planning
Planning
Planning
Planning
Planning
Planning

is goal oriented
is a primary function
is a continuous process
is forward looking
involves choice
is directed towards efficiency

Benefits And Limitations of Planni

Benefits
1.Establishes direction
2.Sets priorities and focuses
action
3.Facilitates resource allocation
4.Increases motivation
5.Reduces cost & risk
6.Improves communication

Limitations

Uncertain future
Time investment
Inflexible
Corporate inertia
Centrally focused
Implementation

Strategic Planning
the continuous process of making present entrepreneurial(risktaking) decisionssystematically and with the greatest knowledge
of their futurity; organizing systematically theeffortsneeded to
carry out these decisions; and measuring the results of these
decisions against the expectations through organized,systematic
feedback.
PeterDrucker
In short, strategic planning is a disciplined effort to produce
fundamental decisions and actions that shape and guide what an
organization is, what it does, and why it does it, with a focus on
the future.

STEPS IN STRATEGIC PLANNING

1.Analyze the organizations internal and external environment

(SWOT analysis)
2.Conduct a stakeholder assessment
3.Define the purpose of the organization
4.Clarify values important to the organization
5.Set the goals and objectives
6.Communicate the goals and objectives to the constituents
7.Identify strategies set time lines and tasks
8.Estimate and allocate resources
9.Develop and communicate a marketing or business plan
10.Establish a system for the implementation and monitoring of
policies, procedures, and rules
11.Establish a system for exchanging information and building
consensus
12.Provide a mechanism for evaluation

Operational Planning
short-range planning that deals with day-to-day maintenance
activities
performed at a unit or departmental level
done as part of the overall strategic planning

STEPS IN OPERATIONAL PLANNING

1.
2.
3.
4.
5.
6.
7.

Set your objectives

Set your priorities
State your assumptions
Review any and all limitations
Develop your primary and back-up plans
Implement the plan
Set up a control system and follow up

Operational Plan Vs. strategic pla

Strategic plan

Operational plan

Time

Several years of
decades

1 year or3 yrs

Degree of
details

General and non specific

Fine details of day-todaywork

Scope

extensive

Constricted

Mgmt level

Top level

Middle of lower level

implementatio
n

Toplevel

Lower level

joubertdias

Base

Types Of Plans

joubertdias

start-up plan
Internal plans
operations plan
strategic plan
growth or expansion or new product plan
feasibility plan
intermediate planning
contingency planning

joubertdias

Thank You