ESSENTIALS

OF
PLANNING
 WHAT IS PLANNING?
• THE ACT OF DETERMINING THE ORGANIZATION’S GOALS AND THE
MEANS FOR ACHIEVING THEM.
• INVOLVES SELECTING MISSIONS AND OBJECTIVES AND DECIDING ON
THE ACTION TO ACHIEVE THEM; IT REQUIRES DECISION-MAKING, THAT IS,
CHOOSING COURSE OF ACTION FROM AMONG ALTERNATIVES.
• IT IS THE MOST BASIC OF ALL MANAGERIAL FUNCTIONS, AND IT IS
ABOUT DECIDING IN ADVANCE ‘WHAT IS TO BE DONE, BY WHOM,
HOW, WHEN AND WHERE.
 OBJECTIVES OF PLANNING

• PLANNING HELPS IN EFFECTIVE FORECASTING.

• PLANNING PROVIDES CERTAINTY IN THE ACTIVITIES.
• PLANNING GIVES A SPECIFIC DIRECTION TO THE ORGANIZATION.
• IT ESTABLISHES CO-ORDINATION IN THE ENTERPRISE.
• IT IS HELPFUL IN CREATING A HEALTHY COMPETITION.
 OBJECTIVES OF PLANNING

• IT PROVIDES ECONOMY IN THE MANAGEMENT.

• IT PROVIDES IMPORTANT INFORMATION.
• IT IS HELPFUL IN FACING COMPETITION.
• IT IS VERY MUCH HELPFUL IN THE ACCOMPLISHMENT OF BUDGETS.
 ESSENTIALS OF A GOOD PLAN
• IT MUST BE SIMPLE.
• IT SHOULD BE COMPREHENSIVE.
• IT SHOULD PROVE FOR A PROPER ANALYSIS & CLASSIFICATION OF
ACTION.
• IT MUST BE FLEXIBLE.
• IT MUST BE BALANCED.
• IT MUST USE ALL AVAILABLE RESOURCES & OPPORTUNITIES UTMOST
BEFORE CREATING NEW AUTHORITIES & NEW RESOURCES.
 ESSENTIALS OF A GOOD PLAN

• IT SHOULD BE FREE FROM SOCIAL & PSYCHOLOGICAL BASES OF

THE PLANNERS AS WELL AS THE SUBORDINATES.
• THERE SHOULD BE PROPER COORDINATION AMONG SHORT-TERM
& LONG-TERM PLANS.
 MISSION OR PURPORSE

• THE BASIC PURPOSE OR FUNCTION OR TASKS OF AN

ENTERPRISE OR AGENCY OR ANY PART OF IT.
FRAMEWORK FOR
PLANNING
 FRAMEWORK FOR PLANNING

• TO ENGAGE IN BUSINESS PLANNING, CULTURAL HERITAGE

ORGANIZATIONS NEED A FRAMEWORK TO GUIDE THE ANALYSIS,
STRATEGY, AND PLANNING ACTIVITIES THAT ARE APPROPRIATE TO
THEIR PUBLIC-GOOD MISSIONS.
 METHODOLOGY

• WHETHER OR NOT CULTURAL HERITAGE INSTITUTIONS ENGAGE IN

BUSINESS PLANNING, THEY DO REGULARLY ENGAGE IN STRATEGIC
PLANNING, USING A VARIETY OF PROCESSES.
• A BUSINESS PLAN IS THE NATURAL OUTGROWTH OF AN
ORGANIZATIONAL PLANNING PROCESS, A PROCESS THAT IS BOTH
HOLISTIC AND ONGOING. A SURVEY OF THE LITERATURE REVEALS
THERE ARE ABOUT AS MANY METHODOLOGIES FOR DEVELOPING
BUSINESS PLANS AS THERE ARE TEMPLATES FOR THEM.
 PLANNING PROCESS FOR NON PROFIT
ORGANIZATIONS
• INTERNAL CONSTRAINTS – DETAILED, POINT-BY-POINT IDENTIFICATION
AND ANALYSIS OF THE ORGANIZATION’S MANDATES.
• EXTERNAL CONSTRAINTS – DETAILED, POINT-BY-POINT IDENTIFICATION
AND ANALYSIS OF EXTERNAL FACTORS THAT ARE STRENGTHS,
WEAKNESSES, OPPORTUNITIES, AND THREATS.
• MISSION ANALYSIS – DESCRIPTION OF THE ORGANIZATION’S
PURPOSES AND, IN MANY CASES, ITS VALUES. THE MISSION AND
MANDATES COMBINE TO PROVIDE THE REASONS THE ORGANIZATION
EXISTS AND THE NEEDS IT FILLS.
 PLANNING PROCESS FOR NON PROFIT
ORGANIZATIONS
• STAKEHOLDER ANALYSIS – DETAILED ANALYSIS OF THE VALUE
PROPOSITION FOR ALL ENTITIES THAT INFLUENCE OR HAVE A STAKE
IN THE RESOURCES OR OUTPUT OF THE ENTERPRISE OR ARE
AFFECTED BY RESULTS ACHIEVED BY THE ORGANIZATION. THIS
INCLUDES DEFINING WHO THE STAKEHOLDERS ARE AND HOW
THEY WILL JUDGE THE PERFORMANCE OF THE ORGANIZATION.
• MISSION STATEMENT – SHORT, ACTIONABLE, INSPIRING
STATEMENT OF PHILOSOPHY, PURPOSE, GOALS, VALUES, AND
CULTURE THAT IDENTIFIES THE ORGANIZATION’S SUSTAINABLE
COMPETITIVE ADVANTAGE.
 PLANNING PROCESS FOR NON PROFIT
ORGANIZATIONS
• STRATEGIC PLAN – ANALYSIS THAT DESCRIBES THE BEST FIT BETWEEN
AN ORGANIZATION AND ITS ENVIRONMENT. A RESPONSE TO THE
STRATEGIC ISSUES IDENTIFIED FROM THE STAKEHOLDER PERSPECTIVE,
THROUGH ANALYSIS OF THE MISSION, AND FROM THE EXTERNAL
ENVIRONMENT, ALONG WITH WAYS TO MANAGE THE STRATEGIC
ISSUES.
• BUSINESS PLAN – HIGH-LEVEL DESCRIPTION OF HOW AN
ORGANIZATION WILL IMPLEMENT ITS STRATEGIC PLAN, FOR THE
ORGANIZATION AS A WHOLE OR FROM THE PERSPECTIVE OF A SPECIFIC
PROJECT OR PRODUCT.
 PLANNING PROCESS FOR NON PROFIT
ORGANIZATIONS

• OPERATING PLAN – SPECIFIC DESCRIPTION OF THE BUSINESS PLAN

FOR A DEFINED PERIOD OF TIME (TYPICALLY 12 TO 18 MONTHS).
• VISION FOR SUCCESS – DESCRIPTION OF THE WAY THE
ORGANIZATION WILL LOOK WHEN THE BUSINESS PLAN IS FULLY
IMPLEMENTED.
STRATEGIC PLANNING AND
BUSINESS STRATEGIES
 STRATEGIC PLANNING
STRATEGIC PLANNING IS THE PROCESS OF:
• DIAGNOSING THE ORGANIZATION’S EXTERNAL AND INTERNAL
ENVIRONMENT
• DECIDING ON A VISION AND MISSION
• DEVELOPING OVERALL GOALS
• CREATING AND SELECTING GENERAL STARTEGIES TO BE PURSUED
• ALLOCATING RESOURCES
 WHAT IS A STRATEGIC PLAN

• IT IS A DOCUMENT USED TO COMMUNICATE WITH THE

ORGANIZATION THE ORGANIZATIONS GOALS, THE ACTIONS
NEEDED TO ACHIEVE THOSE GOALS AND ALL OF THE OTHER
CRITICAL ELEMENTS DEVELOPED DURING THE PLANNING EXERCISE.
 WHAT IS STRATEGIC MANAGEMENT?
• IT IS THE COMPREHENSIVE COLLECTION OF ONGOING ACTIVITIES
AND PROCESSES THAT ORGANIZATIONS USE TO
SYSTEMATICALLY COORDINATE AND ALIGN RESOURCES AND ACTIONS
WITH MISSION, VISION AND STRATEGY THROUGHOUT
AN ORGANIZATION.
• STRATEGIC MANAGEMENT ACTIVITIES TRANSFORM THE STATIC PLAN
INTO A SYSTEM THAT PROVIDES STRATEGIC PERFORMANCE FEEDBACK
TO DECISION MAKING AND ENABLES THE PLAN TO EVOLVE AND GROW
AS REQUIREMENTS AND OTHER CIRCUMSTANCES CHANGE.
 WHAT IS STRATEGY EXECUTION?

• IT IS BASICALLY SYNONYMOUS WITH STRATEGY MANAGEMENT

AND AMOUNTS TO THE SYSTEMATIC IMPLEMENTATION OF A
STRATEGY.
 WHAT ARE THE STEPS IN STRATEGIC PLANNING &
MANAGEMENT?

• 1) ANALYSIS OR ASSESSMENT, WHERE AN UNDERSTANDING OF THE CURRENT INTERNAL AND

EXTERNAL ENVIRONMENTS IS DEVELOPED.
• 2) STRATEGY FORMULATION, WHERE HIGH LEVEL STRATEGY IS DEVELOPED AND A BASIC
ORGANIZATION LEVEL STRATEGIC PLAN IS DOCUMENTED
• 3) STRATEGY EXECUTION, WHERE THE HIGH LEVEL PLAN IS TRANSLATED INTO MORE
OPERATIONAL PLANNING AND ACTION ITEMS, AND
• 4) EVALUATION OR SUSTAINMENT / MANAGEMENT PHASE, WHERE ONGOING REFINEMENT AND
EVALUATION OF PERFORMANCE, CULTURE, COMMUNICATIONS, DATA REPORTING, AND OTHER
STRATEGIC MANAGEMENT ISSUES OCCURS.
 WHAT IS A BUSINESS STRATEGY?

• A FIRM'S HIGH-LEVEL PLAN FOR REACHING SPECIFIC BUSINESS

OBJECTIVES. STRATEGIC PLANS SUCCEED WHEN THEY LEAD TO
BUSINESS GROWTH, A STRONG COMPETITIVE POSITION, AND
STRONG FINANCIAL PERFORMANCE. WHEN THE HIGH-LEVEL
STRATEGY FAILS, HOWEVER, THE FIRM MUST EITHER CHANGE ITS
APPROACH OR PREPARE TO GO OUT OF BUSINESS.
 FORMULATING STRATEGY IS ALL ABOUT MEETING
OBJECTIVES (GOALS)

• IN BUSINESS, THE STRATEGY BEGINS WITH A FOCUS ON THE

HIGHEST LEVEL OBJECTIVE IN PRIVATE INDUSTRY: INCREASING
OWNER VALUE. FOR MOST COMPANIES, IN FACT, THAT IS THE
FIRM'S REASON FOR BEING. IN PRACTICAL TERMS, HOWEVER, FIRMS
ACHIEVE THIS OBJECTIVE ONLY BY EARNING PROFITS. FOR MOST
FIRMS, THEREFORE, THE HIGHEST GOAL CAN BE STATED BY
REFERRING TO "PROFITS." THE GENERIC BUSINESS STRATEGY,
THEREFORE, AIMS FIRST TO EARN, SUSTAIN, AND GROW PROFITS.
 AN ABUNDANCE OF STRATEGIES

• STRATEGY DISCUSSIONS ARE SOMETIMES CONFUSING BECAUSE MOST

FIRMS, IN FACT, HAVE MANY STRATEGIES, NOT JUST A SINGLE "BUSINESS
STRATEGY." ANALYSTS SOMETIMES SAY MARKETING STRATEGY WHEN
THEY, IN FACT, MEAN THE FIRM'S COMPETITIVE STRATEGY. AND, A
FIRM'S FINANCIAL STRATEGY IS SOMETHING DIFFERENT FROM
ITS PRICING STRATEGY, OR OPERATIONAL STRATEGY. THE FIRM'S MANY
STRATEGIC PLANS INTERACT, BUT THEY HAVE DIFFERENT OBJECTIVES AND
DIFFERENT ACTION PLANS.
 THE STRATEGIC FRAMEWORK

• THE SUBJECT BUSINESS STRATEGY IS EASIER TO UNDERSTAND, TO

MAKE COHERENT, BY VIEWING EACH ONE AS PART OF
A STRATEGIC FRAMEWORK.
• THE STRATEGIC FRAMEWORK IS A HIERARCHY.
• THE AIM IS THE HIGHEST-LEVEL BUSINESS OBJECTIVE: EARN,
SUSTAIN, AND GROW PROFITS.
 UNDERSTANDING THE STRATEGIC FRAMEWORK

• SPECIFIC BUSINESS OBJECTIVES FOR EACH STRATEGY –

IDENTIFYING WHICH GOALS IN THE FRAMEWORK HAVE PRIORITY
OVER OTHERS.
• MAPPING RELATIONSHIPS BETWEEN THE VARIOUS STRATEGIES –
SHOWING, FOR EXAMPLE, WHICH OF THEM SUPPORT OTHERS.
ORGANIZATIONAL PLANS,
PROCEDURES AND RULES
 ORGANIZATIONAL PLANNING

• BASICALLY A “TO DO” LIST FOR AN ORGANIZATION. IT LISTS OUT

THE PLAN OR WORK, PROGRAMS, AND ORGANIZATIONAL
GROWTH OVER A PERIOD OF TIME.
• HELPS AN ORGANIZATION CHART A COURSE FOR THE
ACHIEVEMENT OF ITS GOALS.
 PROCEDURES

• CAN BE DESCRIBED AS THE DETAILS OF ACTION OR THE GUIDELINES

THAT ARE GIVEN IN ORDER TO ACHIEVE THE OBJECTIVES OF THE
ORGANIZATION.
• PROVIDE DETAILS REGARDING THE WAYS IN WHICH THE THINGS
HAVE TO BE DONE BY THE ORGANIZATION.
• HELP IN IMPLEMENTING THE POLICIES OF THE ORGANIZATION.
 PROCEDURES

• A SERIES OF RELATED TASKS THAT HAVE TO BE DONE IN THE

CHRONOLOGICAL ORDER AND IT IS ALSO THE ESTABLISHED WAY
IN WHICH A PARTICULAR WORK HAS TO BE PERFORMED.
 RULES

• THE PLANS THAT PROVIDE THE REQUIRED COURSE OF ACTION

REGARDING A PARTICULAR SITUATION.
• CAN ALSO BE DESCRIBED AS A DECISION THAT HAS TO BE MADE BY
THE MANAGEMENT REGARDING WHAT NEEDS TO BE DONE IN
CASE OF A PARTICULAR SITUATION.
PROBLEM-SOLVING & DECISION-
MAKING
 GUIDELINES TO PROBLEM SOLVING AND DECISION
MAKING

• DEFINE THE PROBLEM.

• LOOK AT POTENTIAL CAUSES FOR THE PROBLEM.
• IDENTIFY ALTERNATIVES FOR APPROACHES TO RESOLVE THE PROBLEM.
• SELECT AN APPROACH TO RESOLVE THE PROBLEM.
• PLAN THE IMPLEMENTATION OF THE BEST ALTERNATIVE (THIS IS YOUR ACTION PLAN).
• MONITOR IMPLEMENTATION OF THE PLAN.
• VERIFY IF THE PROBLEM HAS BEEN RESOLVED OR NOT.
RATIONAL VERSUS ORGANIC APPROACH TO
PROBLEM SOLVING
 RATIONAL

• A PERSON WITH THIS PREFERENCE OFTEN PREFERS USING A

COMPREHENSIVE AND LOGICAL APPROACH SIMILAR TO THE
GUIDELINES.
 ORGANIC

• HIGHLY ADAPTABLE TO UNDERSTANDING AND EXPLAINING THE CHAOTIC

CHANGES THAT OCCUR IN PROJECTS AND EVERYDAY LIFE.
• IT ALSO SUITS THE NATURE OF PEOPLE WHO SHUN LINEAR AND MECHANISTIC
APPROACHES TO PROJECTS.
• THE MAJOR DISADVANTAGE IS THAT THE APPROACH OFTEN PROVIDES NO
CLEAR FRAME OF REFERENCE AROUND WHICH PEOPLE CAN COMMUNICATE,
FEEL COMFORTABLE AND MEASURE PROGRESS TOWARD SOLUTIONS TO
PROBLEMS.