TOOLS IN PLANNING

Tool 1: SWOT IDENTIFICATION

O The SWOT analysis provides information

helpful in matching the company’s
resources and capabilities to the
competitive environment in which it
operates.
 Tool 2: Top Down/ Bottom-up
Planning
O Vision Five to Ten Year Picture of the enterprise

Mission Basic purpose for setting up the business

Measurable end result or desired outcomes
Top Down Planning

Objectives

Key Results Specific manifestations that objectives are being

area
met in qualitative terms.
Performance
Indicator
Numerical translation or quantification of KRA’s
Resources
Operating Required in
Strategies plans and Activities Terms of
action and Task Money,
SWOT programs Facilities and
Analysis people
 SWOT Analysis

Opportunities / Threats Strength/ Weaknesses

External Internal
Environment Environment
Assessment Assessment
Bottom Up Planning

- Macro Environment, - Organizational

Social, Political, Performance versus
Economic, Ecological, historical targets and
And Technological benchmarks
- Industry, Sector and - Organizational
Area Trends. Capabilities and
- Market Analysis: completeness
Supply and Demand, - Resource Optimization
Competitors, - Management Function
Substitutes. programs and Projects
- Micro Market - Teams and Individuals
Analysis: Location - Physical Assets,
feasibility Customer Environmental
needs, wants values Conditions
interest attitudes.
 Tool 3: Basic Planning
O Basic Planning is a strategic planning tool usually
used by firms that are yet familiar to the planning
process and expound their knowledge in the future
as they go through the planning process.

Basic planning process include:

1. Identify the firm’s purpose (mission statement)
2. Create general goals to accomplish the mission
3. Identify specific action plans to implement each
strategy
4. Evaluate and update the plan overtime.
 Tool 4: Vision Based Strategic
Planning
O Vision based planning is strategic planning tool that is
centered on the set vision and mission of the firm.
Vision based planning requires the following:
a. Established vision-mission
b. Establish goals in line with vision mission
c. Craft Strategies
d. Develop action plans for each strategy
e. Develop roadmap showing mission, vision, goals
strategies and action plans.
f. Monitor and evaluate implementation
 Tool 5: Issue –based (Goal-based)
Planning
O Issue-based planning is a strategic-planning tool
that starts with the current major issues besetting
the organization and then, works toward the
future.
O issue based planning specifies the following steps
Major Issues
to be taken:
Appropriate Solutions

Road Map
Monitor and Review
 Tool 6: Scenario Planning
O Is a strategic planning tool that is based
on “what if” scenario about the future.
The typical scenarios are optimistic and
pessimistic from which managers are
asked to craft specific strategies to
address each scenario.
 Steps in Scenario Planning:

Develop hedge plants

Identify possible to address different
future scenarios scenarios

Employ alternative
Choose and
strategy if the
implement the best
likelihood of chosen
course o action
strategy is futile.
 Tool 7: Organic
( self-organizing) planning
O Organic planning is a strategic planning tool that
focuses on determining the best practices, processes,
and methods to achieve the task. This tool
encourages the planners to concentrate on what is
doable and what the firm does best, instead of the
constraints and figment of model set up.
 General steps include:

O Discuss the
Articulate objectives of
firm’s culture the group for
and values the firms

Determine the Reflect on how

the organization
weaknesses and
will portray its
recommend strategic plans
improvements to stakeholders