1. PLANNING
Oromia Industry and Urban
Development Bureau
“You got to be careful if you don't know where you're
going, because you might not get there.”
- Yogi Berra
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2. Layout
Definition of planning
Objectives of planning
Planning Approach
Planning Process
2005 plan content and Formats
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3. What is planning
 Development Planning is a deliberate attempt on the part of
the state to make the best use of the country’s resource s with
objective of maximizing the economic welfare of it’s citizens
under a given political and institutional set up.
 In the wider sense planning refers to the preparation of
scheme for every economic activities.
 Lewis Lorwin, has defined planning is a scheme of economic
organization in which individual and separate plants,
enterprises and industries are treated as co-ordinate units of
one single system for the purpose of utilizing all available
resources to achieve maximum satisfaction of the people’s
needs with in a given time.
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4. ….Cont
 In general, “planning is a continuous process
w/c involves decisions, or choices, about
alternative way s of using available resources,
with the aim of achieving certain goal at some
times in the future” (conyers and Hills, 1984
 Planning process is effective when partners in
the planning process are clear about their
functions and perform those in a non-
competing, non-overlapping and mutually
supportive manner.
 Planning in a democratic State is a social
process in which, in some part, every citizen
should have the opportunity to participate.
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5. Objectives of Planning
Economic growth
Self-reliance
Reducing the unemployment
Reducing the inequality in income/ equitable
distribution of wealth. /
Elimination of poverty
Maintain the economic stability
Modernization
Optimum utilization of the resources
Growth with social justice and equity
Faster and more inclusive growth 5

6. Why We Need Planning
1.Where is the Organization Now?
2.If no changes are made, where will
the organization be in 1year? 2
years? 5 years? 10 years?
3. If the answers are not acceptable,
what specific action should
management undertake? What are
the risks and payoffs involved?
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7. Approach of planning
 Centralized approach/Top-Down:
 Top-Down Information: Policies, priorities, targets,
guidelines, budgetary information, Technical
Information, Co-ordination directives, Review of
monitoring and evaluation, suggestions for
replanning.
 Decentralized approach/Bottom-up:
 Bottom-up Information: Data and Information on
local needs and preferences, Area priorities, Area
targets, Problems and constraints.
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8. Planning Process
Environm
ental
Scanning
Strategy
Formulat
ion
Implemen
tation
Monitoring
and
Evaluation
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9. ……itti fufa
1.Environmental Scanning (external
and Internal)
/SWOT/
Strengths – identifying existing
organisational strengths
Weaknesses – identifying existing
organisational weaknesses
Opportunities – what market
opportunities might there be
for the organisation to exploit?
Threats – where might the threats
to the future success come from?
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10. PEST
Political: local, national and international
political developments – how will they affect
the organisation and in what way/s?
Economic: what are the main economic
issues – both nationally and internationally
– that might affect the organisation?
Social: what are the developing social
trends that may impact on how the
organisation operates and what will they
mean for future planning?
Technological: changing technology can
impact on competitive advantage very
quickly!
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11. Strategic Formulation/Planning
First Stage of Strategic
Planning
Futures Thinking
- Thinking about what the
business might need to
do 10–20 years ahead
Strategic Intents
– Thinking about key
strategic themes
that will inform
decision making
Taking time to think and reflect
may be more important than
many businesses allow time for!
Copyright: Intuitives, http://www.sxc.hu
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12. Priority Setting
Program priorities need to be
established with an understanding of
the resources that are available to
help achieve the required outcomes
and impact.
Resources may be local, statewide,
national or even international. The
availability of resources or lack of
resources may be a major factor in
selecting program priorities.
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13. …cont
Priority setting involves consideration
of the following
Vision, and values
Institutional mandates
Resource availability
Local perspectives and dynamics
What other people and agencies are
doing
Research and knowledge base
Priority setting leads to the
identification of intended outcomes13

14. Setting Priorities
(Covey's Model)
QI - Important and Urgent
QII - Important but Not Urgent
QIII - Not Important but Urgent
QIV - Not Important and Not Urgent
The ABC Method (Franklin’s Model)
It ranks tasks into three categories:
A = vital
B = important
C = nice 14

15. ANALYSIS PHASE
Identify Stakeholders
Stakeholder Analysis –Identifying & characterising major
stakeholders, target groups & beneficiaries, defining whose
problems will be addressed by a future intervention
Identify /Deduct Analyse
Problem Analysis –Identifying key problems, constraints
and opportunities; determining cause and effect
relationships
Select the option
Strategy Analysis –Identifying different strategies to
achieve objectives; selecting the most appropriate
strategies; determining the major objectives (Overall
Objective and Project Purpose)
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The Logframe Approach

16. Planning Phase
Define the project logic
– Log frame –defining the project structure, testing its
internal logic, formulating objectives in measurable terms,
defining means and costs
Specifying and operational zing
– Activity scheduling –determining the sequence and
dependency of activities, estimating their duration, setting
milestones and assigning responsibility
– Resource scheduling –from the activity schedule,
developing input schedules and a budget
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17. What are Indicators?
Objective verifiable indicators (OVI) are
specific and objectively verifiable
measures of changes or of results as a
consequence of project activities.
They provide the basis for performance
measurement
They are useful to convey to others what
the project tries to achieve (transparency
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18. What are Sources of Verification
They describe where and in what form to find the
information on achievement of objectives.
– Questions to be clarified:Do appropriate
external sources exist?
– Are they specific enough?
– Are they reliable and accessible?
– Are the costs for obtaining information
reasonable?
– Should other sources be created?
Try to use existing sources as much as possible
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19. Assumptions
External factors that are important for the
success of the project
Define the systems environment and
sustainability issues
Summaries factors which the project
cannot or chooses not control
Are factors which the project does not
address but should monitor.
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20. Column 1
Objectives
Indicators Verification Assumptions
Goal:
The higher order impact to
which the project
contributes
The Greater Why
Measures of the longer
term outcomes that the
project contributed to.
Sources of data
needed to verify
status of Goal
level indicators
Important
factors for
sustaining
objectives in
the long term
Purpose:
The specific and immediate
outcome of the project
The Why?
Measures of the
immediate outcomes or
effects of the delivery of
the outputs.
Sources of data
needed to verify
status Purpose
Level indicators
Outputs:
The deliverables of the
project or the terms of
reference
The What?
Measures of the delivery
of the Outputs
Sources of data
needed to verify
status of Output
Level Indicators
Activities:
The main activities that
must be undertaken to
deliver the outputs
The How?
These measures are
often milestones and are
often presented in more
detail in the project work
plan.
Sources of data
needed to verify
status of the
Activity Level
Indicators
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21. Budgeting
Is the most comprehensive financial
statement indicating an estimate of
revenue and expenditure /usually for
one yr/
It indicates how the government plans
to use public resources to meet it’s
policy objectives
A budget is not just a statement of
figures but an exprsssion of
government spending priorities
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22. Implementation
“Well done is better than well said.”
- Benjamin Franklin
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23. Monitoring and Evaluation
Monitoring is checking and watching
something over a period of time in order to
see how it develops, so that you can make
necessary change
It’s a continuous function that uses the
systematic collection of data on specified
indicators to provide mgmt and the main
stakeholders of an ongoing development
intervention with indications of the extent of
progress and achievement of objectives and
progress in the use allocate funds/ WB, A
Hand book for Practitioners, 2004
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24. …….cont
Evaluation is a systematic assessment of whether
the stated aims and objectives of an intervention
have been met. An evaluation allows questions
about the effectiveness, efficiency and
acceptability/ to clients and to the community/ of
projects and programmes to be answered.
“control: to compare progress against plan so
that corrective action can be taken when a
deviation occurs”
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25. Problem facing planners
 Data are essential tools to planning and plays an important
role for: Problem definition, measurement & analysis,
Inventorying & decision-making, Evaluation;
 Lack of information
 Lack of trained staff
 Inflation
 Shortage of funds
 Paucity of data
 Lack of cooperation among stakeholders
 Untimely response from boss/leaders,
 Dilemma on decision making and etc.
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26. Qabiyyee fi Formaatti karoora 2005
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“An organization to execute better, learn faster,
and change more easily” (Mohrman et al.)

27. THANK YOU
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