PLAN

NING
 DEFINITION OF PLANNING
 PLANNING PROCESS
 STRATEGIC PLANNING
 OPERATIONAL PLANNING
 STRATEGIC Vs. OPERATIONAL PLAN
 TYPES OF PLANNING
 DEFINITON
Planning has been defined by management expert Peter Drucker as
“the management function that includes decisions and actions to
insure future results."

Perspective

 forecasting and budgeting

 long range planning
 Strategic planning
 Strategic management
 Planning Process

• 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
 Nature of Planning

 Planning is goal oriented

 Planning is a primary function
 Planning is a continuous process
 Planning is forward looking
 Planning involves choice
 Planning is directed towards efficiency
Benefits And Limitations of Planning

                  Benefits                          
Limitations
1.Establishes direction
2.Sets priorities and focuses  • Uncertain future
action • Time investment
3.Facilitates resource allocation • Inflexible
4.Increases motivation • Corporate inertia
5.Reduces cost & risk • Centrally focused
6.Improves communication • Implementation
 Strategic Planning

“…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”.

PeterDrucker

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.
 STEPS IN STRATEGIC PLANNING

1.Analyze the organization’s internal and external environment

(SWOT analysis)
2.Conduct a stakeholder assessment
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
 Operational Planning

 short-range planning that deals with day-to-day maintenance

activities

 performed at a unit or departmental level

 done as part of the overall strategic planning

STEPS IN OPERATIONAL PLANNING

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
 Operational Plan Vs. strategic plan

Base Strategic plan Operational plan

Time Several years of 1 year or3 yrs

joubertdias
decades
Degree of General and non specific Fine details of day-to-
details daywork
Scope extensive Constricted
Mgmt level Top level Middle of lower level
implementatio Toplevel Lower level
n
 Types Of Plans

start-up plan
Internal plans
operations plan

joubertdias
strategic plan
growth or expansion or new product plan
feasibility plan
intermediate planning
contingency planning
joubertdias
Thank You