planning
DESCRIPTION
planning introductionTRANSCRIPT
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PLANNING
DEFINITION OF PLANNING PLANNING PROCESS STRATEGIC PLANNING OPERATIONAL PLANNING STRATEGIC Vs. OPERATIONAL PLAN TYPES OF PLANNING
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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-
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BENEFITS AND LIMITATIONS OF PLANNING
Benefits
1. Establishes direction
2. Sets priorities and focuses action
3. Facilitates resource allocation
4. Increases motivation
5. Reduces cost & risk
6. Improves communication
Limitations 1. Uncertain future
2. Time investment
3. Inflexible
4. Corporate inertia
5. Centrally focused
6. Implementation
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PLANNING PROCESS
o Establishing objectives or goalso Seeking necessary Information o Establishing the planning premiseso Identifying the alternative course of action.o Evaluating the alternatives.o Selecting the best alternativeo Follow up
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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”.
- 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.
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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
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OPERATIONAL PLANNING
short-range planning that deals with day-to-daymaintenance activities
performed at a unit or departmental level
done as part of the overall strategic planning
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STEPS IN OPERATIONAL PLANNING
1.Set your objectives2.Set your priorities
3.State your assumptions4.Review any and all limitations
5.Develop your primary and back-up plans6.Implement the plan
7.Set up a control system and follow up
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OPERATIONAL PLAN VS. STRATEGIC PLAN
Base 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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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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Hope it helped