This document discusses various aspects of planning including definitions, types of planning processes, and differences between strategic and operational planning. It defines planning as "the management function that includes decisions and actions to insure future results." There are two main types of planning - strategic planning which establishes long-term direction and priorities, and operational planning which focuses on short-term goals and day-to-day activities. Strategic planning involves analyzing internal/external factors, setting goals and objectives, and identifying strategies, while operational planning develops detailed action plans and controls to implement strategic plans.

1. PLANNING
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PLANNING PROCESS
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STRATEGIC PLANNING
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OPERATIONAL PLANNING
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STRATEGIC Vs. OPERATIONAL PLAN
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DEFINITION OF PLANNING
TYPES OF PLANNING
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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
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3.
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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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4. PLANNING PROCESS
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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
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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
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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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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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12. Hope it helped
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