Planning- Function of Management.

PLANNING
FUNCTION OF MANAGEMENT
© ANUPOM SARKER

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Planning
Meaning and Concept of Planning
In simple words, planning is deciding in advance what is to be done,
when where, how and by whom it is to be done. Planning bridges the
gap from where we are to where we want to go. It includes the selection
of objectives, policies, procedures and programmes from among
alternatives. A plan is a predetermined course of action to achieve a
specified goal. It is an intellectual process characterized by thinking
before doing. It is an attempt on the part of manager to anticipate the
future in order to achieve better performance. Planning is the primary
function of management.
Definitions of Planning
Different authors have given different definitions of planning from time
to time. The main definitions of planning are as follows:
 According to Alford and Beatt, “Planning is the thinking process, the
organized foresight, the vision based on fact and experience that is
required for intelligent action.”
 According to Theo Haimann, “Planning is deciding in advance what is
to be done. When a manager plans, he projects a course of action for
further attempting to achieve a consistent co-ordinate structure of
operations aimed at the desired results.
 According to Billy E. Goetz, “Planning is fundamentally choosing and
a planning problem arises when an alternative course of action is
discovered.”

 According to Koontz and O’ Donnell, “Planning is an intellectual
process, conscious determination of course of action, the basing of
decision on purpose, facts and considered estimates.”
 According to Allen, “A plan is a trap laid to capture the future.”
Nature / Characteristics of Planning
The main characteristics or nature of planning is given below:
Planning is an Intellectual Process
Planning is an intellectual process of thinking in advance. It is a process
of deciding the future on the series of events to follow. Planning is a
process where a number of steps are to be taken to decide the future
course of action. Managers or executives have to consider various
courses of action, achieve the desired goals, go in details of the pros and
cons of every course of action and then finally decide what course of
action may suit them best.
Planning Contributes to the Objectives
Planning contributes positively in attaining the objectives of the
business enterprise. Since plans are there from the very first stage of
operation, the management is able to handle every problem
successfully. Plan try to set everything right. A purposeful, sound and
effective planning process knows how and when to tackle a problem.
This leads to success. Objectives thus are easily achieved.
Planning is a Primary Function of Management
Planning precedes other functions in the management process.
Certainly, setting of goals to be achieved and lines of action to be
followed precedes the organization, direction, supervision and control.
No doubt, planning precedes other functions of management. It is
primary requisite before other managerial functions step in. But all

functions are inter-connected. It is mixed in all managerial functions but
there too it gets precedence. It thus gets primary everywhere.
A continuous Process
Planning is a continuous process and a never ending activity of a
manager in an enterprise based upon some assumptions which may or
may not come true in the future. Therefore, the manager has to go on
modifying revising and adjusting plans in the light of changing
circumstances. According to George R. Terry, “Planning is a
continuous process and there is no end to it. It involves continuous
collection, evaluation and selection of data, and scientific investigation
and analysis of the possible alternative courses of action and the
selection of the best alternative.
Planning Pervades Managerial Activities
From primary of planning follows pervasiveness of planning. It is the
function of every managerial personnel. The character, nature and scope
of planning may change fro personnel to personnel but the planning as
an action remains intact. According to Billy E. Goetz, “Plans cannot
make an enterprise successful. Action is required, the enterprise must
operate managerial planning seeks to achieve a consistent, coordinated
structure of operations focused on desired trends. Without plans, action
must become merely activity producing nothing but chaos.”
Role, Significance, Importance & Advantages of Planning
An organisation without planning is like a sailboat minus its rudder.
Without planning, organisation, are subject to the winds of
organizational change. Planning is one of the most important and
crucial functions of management. According to Koontz and O‟Donnell,
“Without planning business becomes random in nature and decisions
become meaningless and adhoc choices.” According to Geroge R.
Terry, “Planning is the foundation of most successful actions of any
enterprise.” Planning becomes necessary due to the following reasons:

Reduction of Uncertainty
Future is always full of uncertainties. A business organisation has to
function in these uncertainties. It can operate successfully if it is able to
predict the uncertainties. Some of the uncertainties can be predicted by
undertaking systematic. Some of the uncertainties can be predicted by
undertaking systematic forecasting. Thus, planning helps in foreseeing
uncertainties which may be caused by changes in technology, fashion
and taste of people, government rules and regulations, etc.
Better Utilization of Resources
An important advantage of planning is that it makes effective and
proper utilization of enterprise resources. It identifies all such available
resources and makes optimum use of these resources.
Increases Organizational Effectiveness
Planning ensures organizational effectiveness. Effectiveness ensures
that the organisation is in a position to achieve its objective due to
increased efficiency of the organisation.
Reduces the Cost of Performance
Planning assists in reducing the cost of performance. It includes the
selection of only one course of action amongst the different courses of
action that would yield the best results at minimum cost. It removes
hesitancy, avoids crises and chaos, eliminates false steps and protects
against improper deviations.
Concentration on Objectives
It is a basic characteristic of planning that it is related to the
organizational objectives. All the operations are planned to achieve the
organizational objectives. Planning facilitates the achievement of
objectives by focusing attention on them. It requires the clear definition

of objectives so that most appropriate alternative courses of action are
chosen.
Helps in Co-ordination
Good plans unify the interdepartmental activity and clearly lay down
the area of freedom in the development of various sub-plans. Various
departments work in accordance with the overall plans of the
organisation. Thus, there is harmony in the organisation, and
duplication of efforts and conflict of jurisdiction are avoided.
Makes Control Effective
Planning and control are inseparable in the sense that unplanned action
cannot be controlled because control involves keeping activities on the
predetermined course by rectifying deviations from plans. Planning
helps control by furnishing standards of performance.
Encouragement to Innovation
Planning helps innovative and creative thinking among the managers
because many new ideas come to the mind of a manager when he is
planning. It creates a forward-looking attitude among the managers.
Increase in Competitive Strength
Effective planning gives a competitive edge to the enterprise over other
enterprises that do not have planning or have ineffective planning. This
is because planning may involve expansion of capacity, changes in
work methods, changes in quality, anticipation of tastes and fashions of
people and technological changes etc.
Delegation is Facilitated
A good plan always facilitates delegation of authority in a better way to
subordinates.

Steps involved in Planning
Planning is a process which embraces a number of steps to be taken.
Planning is an intellectual exercise and a conscious determination of
courses of action. Therefore, it requires courses of action. The planning
process is valid for one organisation and for one plan, may not be valid
for other organizations or for all types of plans, because various factors
that go into planning process may differ from organisation to
organisation or from plan to plan. For example, planning process for a
large organisation may not be the same for a small organisation.
However, the major steps involved in the planning process of a major
organisation or enterprise are as follows:
Establishing objectives
The first and primary step in planning process is the establishment of
planning objectives or goals. Definite objectives, in fact, speak
categorically about what is to be done, where to place the initial
emphasis and the things to be accomplished by the network of policies,
procedures, budgets and programmes, the lack of which would
invariably result in either faulty or ineffective planning.
It needs mentioning in this connection that objectives must be
understandable and rational to make planning effective. Because the
major objective, in all enterprise, needs be translated into derivative
objective, accomplishment of enterprise objective needs a concrete
endeavor of all the departments.
Establishment of Planning Premises
Planning premises are assumptions about the future understanding of
the expected situations. These are the conditions under which planning
activities are to be undertaken. These premises may be internal or
external. Internal premises are internal variables that affect the
planning. These include organizational polices, various resources and
the ability of the organisation to withstand the environmental pressure.

External premises include all factors in task environment like political,
social technological, competitors‟ plans and actions, government
policies, market conditions. Both internal factors should be considered
in formulating plans. At the top level mainly external premises are
considered. As one moves downward, internal premises gain
importance.
Determining Alternative Courses
The next logical step in planning is to determine and evaluate
alternative courses of action. It may be mentioned that there can hardly
be any occasion when there are no alternatives. And it is most likely
that alternatives properly assessed may prove worthy and meaningful.
As a matter of fact, it is imperative that alternative courses of action
must be developed before deciding upon the exact plan.
Evaluation of Alternatives
Having sought out the available alternatives along with their strong and
weak points, planners are required to evaluate the alternatives giving
due weight-age to various factors involved, for one alternative may
appear to be most profitable involving heavy cash outlay whereas the
other less profitable but involve least risk. Likewise, another course of
action may be found contributing significantly to the company‟s long-
range objectives although immediate expectations are likely to go
unfulfilled.
Evidently, evaluation of alternative is a must to arrive at a decision.
Otherwise, it would be difficult to choose the best course of action in
the perspective of company needs and resources as well as objectives
laid down.

Selecting a Course of Action
The fifth step in planning is selecting a course of action from among
alternatives. In fact, it is the point of decision-making-deciding upon the
plan to be adopted for accomplishing the enterprise objectives.
Formulating Derivative Plans
To make any planning process complete the final step is to formulate
derivative plans to give effect to and support the basic plan. For
example, if Indian Airlines decide to run Jumbo Jets between Delhi an
Patna, obliviously, a number of derivative plans have to be framed to
support the decision, e.g., a staffing plan, operating plans for fuelling,
maintenance, stores purchase, etc. In other words, plans do not
accomplish themselves. They require to be broken down into supporting
plans. Each manager and department of the organisation is to contribute
to the accomplishment of the master plan on the basis of the derivative
plans.
Establishing Sequence of Activities
Timing an sequence of activities are determined after formulating basic
and derivative plans, so that plans may be put into action. Timing is an
essential consideration in planning. It gives practical shape and concrete
form to the programmes. The starting and finishing times are fixed for
each piece of work, so as to indicate when the within what time that
work is to be commenced and completed. Bad timing of programmes
results in their failure. To maintain a symmetry of performance and a
smooth flow of work, the sequence of operation shaped be arranged
carefully by giving priorities to some work in preference to others.
Under sequence it should be decided as to who will don what and at
what time.
Feedback or Follow-up Action

Formulating plans and chalking out of programmes are not sufficient,
unless follow-up action is provided to see that plans so prepared and
programmes chalked out are being carried out in accordance with the
plan and to see whether these are not kept in cold storage. It is also
required to see whether the plan is working well in the present situation.
If conditions have changed, the plan current plan has become outdated
or inoperative it should be replaced by another plan. A regular follow-
up is necessary and desirable from effective implementation and
accomplishment of tasks assigned.
The plan should be communicated to all persons concerned in the
organisation. Its objectives and course of action must be clearly defined
leaving no ambiguity in the minds of those who are responsible for its
execution. Planning is effective only when the persons involved work in
a team spirit and all are committed to the objectives, policies,
programmes, strategies envisaged in the plan.
Planning means looking ahead and chalking out future courses of
action to be followed. It is a preparatory step. It is a systematic activity
which determines when, how and who is going to perform a specific
job. Planning is a detailed programme regarding future courses of
action.
It is rightly said “Well plan is half done”. Therefore planning takes
into consideration available & prospective human and physical
resources of the organization so as to get effective co-ordination,
contribution & perfect adjustment. It is the basic management function
which includes formulation of one or more detailed plans to achieve
optimum balance of needs or demands with the available resources.
According to Urwick, “Planning is a mental predisposition to do things
in orderly way, to think before acting and to act in the light of facts
rather than guesses”. Planning is deciding best alternative among others

to perform different managerial functions in order to achieve
predetermined goals.
According to Koontz & O‟Donell, “Planning is deciding in advance
what to do, how to do and who is to do it. Planning bridges the gap
between where we are to, where we want to go. It makes possible things
to occur which would not otherwise occur”.
Steps in Planning Function
Planning function of management involves following steps:-
1. Establishment of objectives
a. Planning requires a systematic approach.
b. Planning starts with the setting of goals and objectives to
be achieved.
c. Objectives provide a rationale for undertaking various
activities as well as indicate direction of efforts.
d. Moreover objectives focus the attention of managers on
the end results to be achieved.
e. As a matter of fact, objectives provide nucleus to the
planning process. Therefore, objectives should be stated
in a clear, precise and unambiguous language. Otherwise
the activities undertaken are bound to be ineffective.
f. As far as possible, objectives should be stated in
quantitative terms. For example, Number of men
working, wages given, units produced, etc. But such an
objective cannot be stated in quantitative terms like
performance of quality control manager, effectiveness of
personnel manager.
g. Such goals should be specified in qualitative terms.
h. Hence objectives should be practical, acceptable,
workable and achievable.

2. Establishment of Planning Premises
a. Planning premises are the assumptions about the lively
shape of events in future.
b. They serve as a basis of planning.
c. Establishment of planning premises is concerned with
determining where one tends to deviate from the actual
plans and causes of such deviations.
d. It is to find out what obstacles are there in the way of
business during the course of operations.
e. Establishment of planning premises is concerned to take
such steps that avoids these obstacles to a great extent.
f. Planning premises may be internal or external. Internal
includes capital investment policy, management labour
relations, philosophy of management, etc. Whereas
external includes socio- economic, political and
economical changes.
g. Internal premises are controllable whereas external are
non- controllable.
3. Choice of alternative course of action
a. When forecast are available and premises are
established, a number of alternative course of actions
have to be considered.
b. For this purpose, each and every alternative will be
evaluated by weighing its pros and cons in the light of
resources available and requirements of the organization.
c. The merits, demerits as well as the consequences of each
alternative must be examined before the choice is being
made.
d. After objective and scientific evaluation, the best
alternative is chosen.
e. The planners should take help of various quantitative
techniques to judge the stability of an alternative.

4. Formulation of derivative plans
a. Derivative plans are the sub plans or secondary plans
which help in the achievement of main plan.
b. Secondary plans will flow from the basic plan. These are
meant to support and expediate the achievement of basic
plans.
c. These detail plans include policies, procedures, rules,
programmes, budgets, schedules, etc. For example, if
profit maximization is the main aim of the enterprise,
derivative plans will include sales maximization,
production maximization, and cost minimization.
d. Derivative plans indicate time schedule and sequence of
accomplishing various tasks.
5. Securing Co-operation
a. After the plans have been determined, it is necessary
rather advisable to take subordinates or those who have
to implement these plans into confidence.
b. The purposes behind taking them into confidence are :-
i. Subordinates may feel motivated since they are
involved in decision making process.
ii. The organization may be able to get valuable
suggestions and improvement in formulation as
well as implementation of plans.
iii. Also the employees will be more interested in the
execution of these plans.
6. Follow up/Appraisal of plans
-After choosing a particular course of action, it is put into action.

a. After the selected plan is implemented, it is important to
appraise its effectiveness.
b. This is done on the basis of feedback or information
received from departments or persons concerned.
c. This enables the management to correct deviations or
modify the plan.
d. This step establishes a link between planning and
controlling function.
e. The follow up must go side by side the implementation
of plans so that in the light of observations made, future
plans can be made more realistic.
Limitations of planning
There are several limitations of planning. Some of them are inherit in
the process of planning like rigidity etc. while the other arise due to the
shortcoming of the techniques of planning and in the planners
themselves. These limitations are due to the causes which can be either
internal to the organization or due to the factors which are external to
the organization. For planning function to be useful and purposeful,
management is to be aware of the limitations usually associated with
the planning process. Major limitations are given below.
 Planning has tendency to make administration inflexible since it
is a rigid process.
 Planning can be misdirected and biased. There can be attempts
to influence setting of the planning objectives. In such case it
may be used to serve individual interests rather than the interest
of the organization.
 Planning is not very effective in an environment which is
uncertain and dynamic.
 Planning needs accurate data from internal and external sources.
Unreliable data makes the planning ineffective.
 Planning reduces creativity of the employees.

 Planning involves large costs and is a costly process.
 Planning is time consuming process and it delays the actions.
Hence the process is not suitable for emergencies and crisis
situations.
 Planning does not bring success always since due to it the
employees can develop an attitude of false sense of security
which can make them careless in their work.
The 4 Types of Plans
Operational Planning
“Operational plans are about how things need to happen,” motivational
leadership speaker Mack Story said at LinkedIn. “Guidelines of how to
accomplish the mission are set.”
This type of planning typically describes the day-to-day running of the
company. Operational plans are often described as single use plans or
ongoing plans. Single use plans are created for events and activities
with a single occurrence (such as a single marketing campaign).
Ongoing plans include policies for approaching problems, rules for
specific regulations and procedures for a step-by-step process for
accomplishing particular objectives.
Strategic Planning
“Strategic plans are all about why things need to happen,” Story said.
“It‟s big picture, long-term thinking. It starts at the highest level with
defining a mission and casting a vision.”
Strategic planning includes a high-level overview of the entire business.
It‟s the foundational basis of the organization and will dictate long-term
decisions. The scope of strategic planning can be anywhere from the

next two years to the next 10 years. Important components of a strategic
plan are vision, mission and values.
Tactical Planning
“Tactical plans are about what is going to happen,” Story said.
“Basically at the tactical level, there are many focused, specific, and
short-term plans, where the actual work is being done, that support the
high-level strategic plans.”
Tactical planning supports strategic planning. It includes tactics that the
organization plans to use to achieve what‟s outlined in the strategic
plan. Often, the scope is less than one year and breaks down the
strategic plan into actionable chunks. Tactical planning is different from
operational planning in that tactical plans ask specific questions about
what needs to happen to accomplish a strategic goal; operational plans
ask how the organization will generally do something to accomplish the
company‟s mission.
Contingency Planning
Contingency plans are made when something unexpected happens or
when something needs to be changed. Business experts sometimes refer
to these plans as a special type of planning.
Contingency planning can be helpful in circumstances that call for a
change. Although managers should anticipate changes when engaged in
any of the primary types of planning, contingency planning is essential
in moments when changes can‟t be foreseen. As the business world
becomes more complicated, contingency planning becomes more
important to engage in and understand.

Identifying Barriers to Planning
Various barriers can inhibit successful planning. In order for plans to be
effective and to yield the desired results, managers must identify any
potential barriers and work to overcome them. The common barriers that
inhibit successful planning are as follows:
 Inability to plan or inadequate planning. Managers are not born
with the ability to plan. Some managers are not successful planners
because they lack the background, education, and/or ability. Others
may have never been taught how to plan. When these two types of
managers take the time to plan, they may not know how to conduct
planning as a process.
 Lack of commitment to the planning process. The development of of
a plan is hard work; it is much easier for a manager to claim that he
or she doesn't have the time to work through the required planning
process than to actually devote the time to developing a plan. (The
latter, of course, would save them more time in the long run!)
Another possible reason for lack of commitment can be fear of
failure. As a result, managers may choose to do little or nothing to
help in the planning process.
 Inferior information. Facts that are out‐of‐date, of poor quality, or of
insufficient quantity can be major barriers to planning. No matter
how well managers plan, if they are basing their planning on inferior
information, their plans will probably fail.
 Focusing on the present at the expense of the future. Failure to
consider the long‐term effects of a plan because of emphasis on
short‐term problems may lead to trouble in preparing for the future.
Managers should try to keep the big picture — their long‐term goals
— in mind when developing their plans.
 Too much reliance on the organization's planning department.
Many companies have a planning department or a planning and
development team. These departments conduct studies, do research,
build models, and project probable results, but they do not
implement plans. Planning department results are aids in planning
and should be used only as such. Formulating the plan is still the
manager's responsibility.

 Concentrating on controllable variables. Managers can find
themselves concentrating on the things and events that they can
control, such as new product development, but then fail to consider
outside factors, such as a poor economy. One reason may be that
managers demonstrate a decided preference for the known and an
aversion to the unknown.
9 Major Barriers to Planning | Management
This article throws light upon the nine major barriers to planning
in an organisation. The barriers are:
1. Dynamic and Complex Environments
2. Reluctance to Establish Goals
3. Resistance to Change
4. Constraints
5. Time and Expense
6. Psychological Difficulties
7. Technical Problems
8. Misunderstanding
9. Lack of an Appropriate ‘Planning Climate’.
Barrier # 1. Dynamic and Complex Environments:
Perhaps the most important barrier to effective planning is the nature of
an organisation‟s environment. When, for instance, an electronics firm
develops a long-range plan, it tries to take into account how much
technological innovation is likely to occur during the time period of
planning.

But forecasting such unaccountable events is no doubt very difficult.
Anticipating rapid and significant changes certainly complicates the
entire planning process. In fact, changes in any of the elements of an
organisation‟s task or general environments can radically alter the plans
and obstruct the entire planning process.
Barrier # 2. Reluctance to Establish Goals:
The second barrier to effective planning is the reluctance on the part of
some managers to establish goals for themselves and their units of
responsibilities. The main reason for this reluctance is lack of
confidence or fear or failure. If a manager sets a very specific „concise
and time-related goals‟, then whether he (she) attains it will become
clear.
A manager is reluctant to disclose his failure. This means that managers
who do consciously or unconsciously try to avoid this degree of
accountability are likely to hinder the planning efforts of their
organisation. Various other factors also contribute to a manager‟s
reluctance to establish goals, viz., a lack of ability, a lack of
information, or a poor reward system.
Barrier # 3. Resistance to Change:
This is the third major barrier to the planning process. Any type of
organisational planning involves changing one or two aspects of its
current situation. Managers resist change for three main reasons, viz.,
fear of the unknown, a preference for familiar goals and plans, and,
economic insecurity.
Barrier # 4. Constraints:
Another major obstacle to planning arises due to constraints that limit
what an organisation can do. For example, an organisation may have
such a heavy investment in plant and equipment that it cannot acquire
new equipment. Labour contracts can also be major constraints. Other

possible constraints include governmental regulations, a shortage of
managerial talent, and a scarcity of raw materials.
Barrier # 5. Time and Expense:
Another barrier to effective planning is that good planning is time-con-
suming and expensive. Good planning often fails for lack of funds. A
planning system often requires for instance, technical expertise or a
database that are to be acquired at a cost.
Barrier # 6. Psychological Difficulties:
These difficulties mainly arise from lack of confidence among planners.
If there is a fear of the future and unknown there may be a preference
for day-to-day activities as opposed to looking into a dim future.
Moreover, the fear to adding to one‟s work load may also inhibit the
desire to plan.
A manager‟s attitude may be such that he prefers playing safe or he
avoids risk-taking which is inherent in most planning activity. He may
be over-confident as to the present, or over- pessimistic as to the future.
He may feel that there is hardly any point in planning for a recession
which might deepen. His approach may be completely non-rational in
relation to the essence of planning.
Barrier # 7. Technical Problems:
Such problems which occur frequently are a major source of difficulty
for the managerial planner. If the manager is deficient in organizing
ability he will be unable to understand or solve some of the technical
organisational problems which accompany planning.
Alternatively, if he lacks training in the effective utilization of this time,
he cannot solve the technical demands of arranging time in order to
cope with the burdens of planning. In addition, a manager may lack the

technical skills necessary to understand the nature of the objectives for
which planning is needed.
The control process which he supervises may be inadequate, so that the
technical problems of extrapolating from data reflecting past experience
(which may be necessary in working out plans) become insoluble.
More often than not it is the very complexity of the planning process
and the appearance of the complicated tools for their resolution which
create difficulties for management. The nature of the industry may be
such that shifting patterns of market demand make production highly
uncertain. So planning without complex techniques is very difficult.
The very process of forecasting — essential for planning — is
complicated and inexact. Various forecasting and planning techniques
now in use require sound knowledge of mathematics and operations
research from managers. Therefore a lack of ability in this area or lack
of training in quantitative methods to planning creates insuperable
difficulties.
Overcoming barriers for strategic planning
Traditionally, strategic planning has been recognized as very important
activity to the effective management of the firm. However, according to
some recent surveys (from 2006 and 2007), which are related to the
organizational practice of strategic planning, “some” survey participants
were not satisfied fully with the process or outcome.
Hence I would like to discuss some typical barriers and problems,
which exist within strategic planning. Of course, I will make some
suggestions on how to overcome them. These barriers are
 analysis barriers,
 agenda setting related barriers and
 barriers for strategy finding

Overcoming analysis barriers
The problem
Strategic analysis can be a complex task. Managers may be
overwhelmed by the large amount of information. It is difficult enough
to distinguish between relevant and irrelevant information. It is,
however, even more difficult to make sense of this information.
In such a situation, people tend to unconsciously reduce complexity by
focusing on direct effects: Whatever finding from the initial analysis is
considered relevant, people just think of some obvious direct effects.
Then, they immediately start to derive strategy approaches.
What to do
First, and most importantly, organizations should help their managers
with the process of strategic analysis. There are several approaches to
choose from, for example:
 provide specialized training in this field
 provide a structured process with some standard tools for strategic
analysis (but make sure to avoid the disadvantages of standard
models and tools
 provide coaching and consulting from the experts in the central
strategic planning department
 narrow down the focus of the analysis (e.g. competitors’ moves in
the first round, technological trends in the second round, and so on)
To develop a successful and sustainable strategy, organizations should
apply an approach that considers the impact of secondary effects. I
recommend taking a dynamic view of the marketplace all the time.
Therefore organizations should anticipate competitive reactions to their
strategic moves and explicitly incorporate them into their strategic
analysis. To ensure such a dynamic view I recommend applying an
approach that is based on the analytical technique of business dynamics.

Overcoming barriers in agenda setting
The problem
In some cases only top managers contribute to the agenda of the
strategy meeting. Some major disadvantages are linked with this
approach:
 Not all really important issues will be set to the agenda; due to this
fact
 Some important aspects that have an impact on the meta level of
corporate issues will not be considered.
 Inappropriate agenda-setting can team up with other issues to form a
mutually reinforcing set of problems which makes your strategy
process doomed to failure.
What to do
The quality of strategic decisions can be improved if middle
management has the chance to contribute their issues and concerns to
the stage of agenda setting. Hence it is recommended to establish a
procedure that ensures the involvement of middle managers during the
process of agenda setting.
Degree and content of such a procedure should consider both size and
structures of the organization. In larger organizations, a two-step-
approach could be employed:
1. Collect all suggestions and ideas for the agenda from middle
management
2. Review, cluster, filter, and prioritize them in order to derive the most
relevant items
A positive side effect will be that the middle managers will feel
involved and taken seriously. This process relieves them from the
perceived need to smuggle their issues into other items on the agenda.

Overcoming barriers of strategy finding
The Problem
Strategy finding is the responsibility of top management. In particular
in smaller and medium sized organizations, managers do not deal with
strategies on a regular basis. They lack the experience to derive
appropriate strategies and initiatives from the analysis results. In
addition, the executive team in such organizations consists only of very
few people. This even further limits their ability to discover the one best
strategy amongst many options.
What to do
To generate a variety of ideas the organization has to ensure that
various perspectives and different levels of knowledge are reflected.
This can be achieved by including senior management representatives
from all functional units of the organization. That should include small
units as well as those units that are far away from corporate HQ.
In order to overcome the lack-of-experience-barrier, it is advisable to
include strategic planning and thinking capabilities in the personnel
development activities.
Another option is to bring in some outside experience. I don‟t mean to
hire McKinsey or BCG. Nevertheless an experienced external coach or
consultant may facilitate strategy finding by moderating and guiding the
strategy process.
Conclusion
The above examples include by far not all barriers and solutions for
strategic planning. They are just an illustration for the broad range of
issues that make or break a successful strategic planning process.

The first step to improve this process is to critically assess the
organizations capabilities, strengths and weaknesses in strategic
planning. Compare them with best practice approaches. On this basis,
you can identify the most important areas for improvement and decide
on some measures to take.
Overcoming Barriers To Strategic Planning
The better you understand your organization and the barriers that exist
to strategic planning the better off you'll be to address them. Although
the barriers and the methods of addressing them are numerous,
following are a few ideas that might help.
Provide Leadership
The drive to conduct strategic planning must be supported by the
organization's leadership. This sends a strong signal of the level of
importance of the process, which often improves the level of
acceptance.
Communicate
If there is uncertainty in the organization over strategic planning,
communicate what you are going to do, why you are doing it, how
people will be involved in the process, and the expected timelines. As
well, it is important to commit to provide updates on a regular basis of
how the process is going and what has been achieved. In the absence of
information, people will make it up themselves. This communication
process can take a variety of forms including meetings, newsletters,
town hall forums, etc.
Manage The Change Process
Development of the strategy is only the first step in the whole process.
It is equally important to manage the change process for the
implementation of your strategy. Effective change management will not

eliminate all the concerns, but it will help keep them to a tolerable level
and allow the organization to continue without significant loss of
productivity.
Reward Supportive Behaviour
It's not enough to focus on the barriers to strategic planning. You should
also reward behaviours that support strategic planning. For example, in
hearing about the start of a strategic planning process, a unit head meets
with her staff to discuss ideas on how they can backfill positions so as
to allow as many staff as possible to participate in the planning process.
No Time is Ever Perfect
No matter when you undertake strategic planning, there will always be
other initiatives going on or information that isn't available. Although
strategic planning is often positioned as though you are starting with a
blank canvas, the reality is that you are not. As long as you can devote
the time to strategy without the wheels falling off - get on with it. In the
long term, your organization will be far better off getting on with the
planning and associated changes that come of it than constantly putting
it off for that elusive perfect time.

Planning- Function of Management.

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