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planning introduction

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  2. 2. DEFINITON Planning has been defined by management expert Peter Drucker as “the management function that includes decisions and actions to insure future results." joubertdias Perspective:  forecasting and budgeting  long range planning  Strategic planning  Strategic management - 2
  3. 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 joubertdias 2. Establishes direction Sets priorities and focuses action Facilitates resource allocation Increases motivation Reduces cost & risk Improves communication Limitations 3
  4. 4. PLANNING PROCESS o o o o o o joubertdias o 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 4
  5. 5. STRATEGIC PLANNING - Peter Drucker - 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. 5 joubertdias “… 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. 6. STEPS IN STRATEGIC PLANNING 1.Analyze the organization’s internal and external environment (SWOT analysis) 2.Conduct a stakeholder assessment joubertdias 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 6
  7. 7. OPERATIONAL PLANNING short-range planning that deals with day-to-day maintenance activities  performed at a unit or departmental level  joubertdias  done as part of the overall strategic planning 7
  8. 8. STEPS IN OPERATIONAL PLANNING joubertdias 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 8
  9. 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 9 joubertdias Base
  10. 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  joubertdias 10
  11. 11. joubertdias 11
  12. 12. Hope it helped joubertdias 12