2. DEFINITON
Planning has been defined by management expert Peter
Drucker as “the management function that includes
decisions and actions to insure future results."
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Perspective:
forecasting and budgeting
long range planning
Strategic planning
Strategic management
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3. BENEFITS AND LIMITATIONS OF PLANNING
Benefits
1.
3.
4.
5.
6.
1.
2.
3.
4.
5.
6.
Uncertain future
Time investment
Inflexible
Corporate inertia
Centrally focused
Implementation
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2.
Establishes direction
Sets priorities and focuses
action
Facilitates resource
allocation
Increases motivation
Reduces cost & risk
Improves communication
Limitations
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5. STRATEGIC PLANNING
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Peter Drucker
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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.
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“… the continuous process of making present entrepreneurial (risk-taking)
decisions systematically and with the greatest knowledge of their futurity;
organizing systematically the efforts needed to carry out these decisions; and
measuring the results of these decisions against the expectations through
organized, systematic feedback”.
6. STEPS IN STRATEGIC PLANNING
1.Analyze the organization’s internal and external environment
(SWOT analysis)
2.Conduct a stakeholder assessment
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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
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7. OPERATIONAL PLANNING
short-range planning that deals with day-to-day
maintenance activities
performed at a unit or departmental level
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done as part of the overall strategic planning
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8. STEPS IN OPERATIONAL PLANNING
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1.Set your objectives
2.Set your priorities
3.State your assumptions
4.Review any and all limitations
5.Develop your primary and back-up plans
6.Implement the plan
7.Set up a control system and follow up
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9. OPERATIONAL PLAN VS. STRATEGIC PLAN
Strategic plan
Operational plan
Time
Several years of decades
1 year or 3 yrs
Degree of
details
General and non specific
Fine details of day-to-day work
Scope
extensive
Constricted
Mgmt level
Top level
Middle of lower level
implementation
Top level
Lower level
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Base
10. TYPES OF PLANS
start-up plan
Internal plans
operations plan
strategic plan
growth or expansion or new product plan
feasibility plan
intermediate planning
contingency planning
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